Gearing to face the challenge of sustained investment in coming years in wake of the Centre’s incentive package expiring, the Himachal Pradesh government is now banking on its merits to ensure that the state continues to receive investments.
Onkar Chand Sharma, director Himachal Industries Department, maintains merits like cheap and reliable power supply along with proactive steps by the state government would help sustain the investment flow in the future. The state industries department is also looking to attract big industrial houses, to make Himachal an attractive investment destination.
Himachal is gearing to withstand the tremors of calibrated withdrawal of the tax holiday package, initiated with the withdrawal of excise package from March 31.
The other two components of concessions, income tax and capital subsidy would be revoked later.
Sharma added apart from power which is a critical issue for industries in the North, the state government is also promoting single window clearance which would expedite the process for setting up industries.
With influential industrial houses like Hero Honda scouting for land to expand their manufacturing units, the state industry department maintain providing land in contiguity to big industrial houses was also one such area to work on.
Land acquisition has been one of the main impediments for the big industrial houses and to ensure this land bank is being created across different districts.
Efforts were being taken to fructify investments from those industries which despite receiving clearance from the state government failed to invest due to some reasons, noted Sharma
The investment climate in Himachal was immensely benefited by tax and central excise benefits. According to industries department figures, the state attracted investment worth Rs 10,100 crore during 2003-2010 (period for which excise package existed). Prior to 2003, the state had attracted investment just worth Rs 3,087 crore .
Besides excise benefits, Income tax benefits and capital investment subsidy was also offered to the industries setting up their bases in the hilly states creating potential for local employment.
