Ready to give sops to investments in hilly areas: Rawat

Uttarakhand Chief Minister Harish Rawat today offered all possible concessions to investments in the hilly areas of the state.
An investment and industry friendly environment is being developed in the state's hilly and border areas to promote investments, Rawat said while interacting with representatives of Hills Industries Union here late last night.
This will create employment opportunities for locals and stop migration in search of work from these areas, he added.
Seeking maximum participation from industrialists in the process, he said the state government is ready to give all possible concessions to them.
New policies have been framed to encourage small and medium scale enterprises, including aid for those setting up industries in the hilly regions as well as simplification of the process of obtaining permission for doing so, an official release quoted the Chief Minister as saying.

About 100 new industrial areas are being developed, 70 per cent of which would be located in hilly regions and 30 per cent in plain areas.

In order to facilitate this, land banks will also be established and a separate fund is being created for this.
This will help industrialists get financial support for cluster development, BPR and advisory service, Rawat said.
Single window system of clearance must be introduced so that the industrialists face no problem in setting up units and their problems are resolved well in time, Rawat said.
Funds will be created for small and medium scale industries so that the money is released as soon as the sanction is received.

Plains and hilly regions in the state have been divided into two tiers.
Tier A includes Pithoragarh, Uttarkashi, Chamoli, Champawat, Rudrayprayad and Bageshwar districts whereas Tier B includes Pauri, Tehri and Almora districts.
Places located 650 metres above sea level in Dehradun and Nainital districts also fall under Tier B.
Tier A investors will be given a subsidy of 40 per cent whereas those in Tier B shall get 30 per cent subsidy in capital investment.
Subsidy will be given also in interest and VAT while relaxation will be given on stamp fee.
Five per cent relaxation will be given for the first five years on electricity bills to both Tier A and B cities.

However, this will include bills only up to 100 KVA.
In case of over 100 KVA, 60 per cent will be compensated.
Asking the members of the Union to go through policies designed for small and medium scale industries, Rawat said they have been invited to identify lands for setting up industries after going through the policies.