The decision was taken at a meeting at the secretariat here on Wednesday, government officials said.
In the policy, areas for incentives have been divided into categories A and B in the state. Backward districts such as Pithoragarh, Uttarakashi, Chamoli, Champawat, Rudraprayag and Bageshwar have been kept in the category A where the capital subsidy will be 40 per cent.
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In the category B, districts such as Tehri, Pauri and Almora have been included, and the capital subsidy will be 30 per cent. The interest subsidy in the category A will be 12 per cent while it will be 10 per cent for B.
The new policy also envisages power subsidy. MSMEs in the category A will also be entitled to 100 per cent relaxation in value-added tax (VAT) in the first five years. But such relaxation will be 75 per cent for the category B.
Similarly, transport subsidy will also be provided in graded manner.
The government will also provide all support to cluster development schemes of the central government and set up mini tool rooms.
The development of a land bank is another hallmark of the new policy. At least 25 per cent of the areas in new industrial estates, developed by the State Industrial Development Corporation of Uttarakhand Limited (SIDCUL), will be reserved for MSMEs. SIDCUL would also provide land to MSMEs at a concession rate.
The policy also calls for providing awards to best MSMEs on the basis of their performances in growth and profit.
We welcome the governments decision to approve the new MSME policy which will give big boost to investment in the state, said Pankaj Gupta, president of the IAU.
An empowered committee headed by the chief minister is being set up for the effective monitoring of the policy implementation.
Significantly, the policy was prepared by the department of MSME and the Industries Association of Uttarakhand (IAU) by incorporating suggestions from various business chambers.
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- The decision was taken at a meeting at the secretariat in Dehradun on Wednesday