After announcing the special integrated industrial promotional policy 2008 for hilly and remote areas of Uttarakhand, the state government is now working out a plan to extend all these incentives to the existing units which go for substantial expansion.
Besides this, the department of industry will also issue special guidelines on the hill policy. “All these plans are in final stages,” said a top official of the industry department here today. The guidelines would help in bringing more clarity on the policy for its effective implementation.
The move follows the growing demand from the industrial chambers, which include the Industries Association of Uttarakhand (IAU), Kumaon-Garhwal Chamber of Commerce and Industry (KGCI) and others.
“The government must extend the new incentives to existing units and issue guidelines as quickly as possible,” said IAU President Pankaj Gupta.
Uttarakhand witnessed strong industrialisation during the past five years mainly in the plains in the wake of the central industrial package 2003.
But in sharp contrast, the hilly region of the state had largely remained devoid of industrial development.
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In this context, the B C Khanduri government brought the new hill industrial policy complete with a slew of sops for a period of 10 years.
The hallmark of the new industrial policy, which came into force from April 1, 2008, is that it doles out special power tariff rebate up to 100 percent. Under the new policy, the remote and hilly areas of the state have been categorized in group A and B with incentives in the former higher than the latter.
Projects with investments more than Rs 5 crore will now be classified as mega project. Earlier this status was accorded to only those projects having investments more than Rs 50 crore under the 2003 industrial policy.
The minimum requirement of land for setting up a private industrial estate would now be 2 acres instead of 30 acres. These industrial areas would also be provided financial assistance up to Rs 50 lakh. There will be no stamp duty in the sale and lease deed of the land meant for industrial plots.
There will also be capital subsidy on fixed capital investment in building, plant and machinery at the rate of 25 per cent maximum of Rs 30 lakh in Group A while 20 percent with maximum of Rs 25 lakh in group B.
A special VAT rebate up to 90 percent will also be given. Interest subsidy will be available to eligible enterprises on loans extended by banks and financial institutions.
With such attractive financial incentives banks in these areas now have very good opportunities of financing industrial activities, an industrial department official said.