Despite the global meltdown, Uttarakhand’s tax holiday scheme is still popular in industry. A host of top companies are either going for expansion or setting up shops in the state to take the benefit of the special industrial package offering a slew of tax and other incentives, official sources said.
This is even after the central government’s move not to extend the scheme beyond March 31, 2010, as being demanded by Chief Minister BC Khanduri. But for the state government, there is still a ray of hope as far as the extension of the scheme is concerned. “We may get it done after the general elections,” a top official said.
Nevertheless, top companies including Titan, Delta India, India Glycols, HUL, ITC and Hindustan Zinc have been given land at the state’s key industrial estates recently for expansion as well as for setting up new units.
“We believe all these companies will take the benefit of the tax holiday scheme,” a top official of the state government said after issuing land allotment letters.
With the tax holiday scheme helping companies like Hero Honda, which has already gone for production, to generate profit in the last quarter, Uttarakhand is being looked upon by the industry as a new harbinger of profit in the recession period.
Titan Industries, which has already one unit at Dehra Dun, is going ahead with its plans to set up a new manufacturing facility in Pantnagar where it has been allotted 12,000 sq metre land. Similarly, Hindustan Zinc is also investing Rs 100 crore to set up a silver refinery in the same area.
FMCG giant HUL has been allotted 64,000 sq m land at the Haridwar industrial estate where it has committed to invest Rs 200 crore-Rs 500 crore for expansion programme.
ITC, another FMCG major, has also been given 38,400 sq m land at Haridwar where it would be investing Rs 260 crore.
The land allotment to the big companies for expansion programme is also being seen as a major boost to industrialisation.
