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With a draft industrial policy for micro, small and medium enterprises (MSMEs) being fine-tuned and the Centre extending a capital subsidy scheme, the Uttarakhand government is getting ready to set up a new industrial estate exclusively for the MSME sector at Lal Kuan in the Kumaon region.
An announcement to this effect had already been made by the former chief minister, Vijay Bahuguna, after the Centre extended the capital investment subsidy scheme under the special industrial package of 2003 for Himachal Pradesh and Uttarakhand with retrospective effect from January 7, 2013 until March 31, 2017.
The Cabinet Committee on Economic Affairs (CCEA) had put its seal of approval on the capital investment subsidy for the two states on January 15.
Immediately after the announcement on the capital subsidy, the government said the incentive is being extended only for the MSME sector at the rate of 15 per cent, with a cap of Rs 50 lakh, for setting up new units or sizeable expansions. The government said it would make full use of the capital subsidy scheme by setting up the new industrial estate at Lal Kuan, for which it has already identified land.
Ajay Pradyot, secretary, state ministry of MSME, told Business Standard that the industrial estate would come up on 60 acres of land.
There is a rider in the capital subsidy scheme - industrial units can avail themselves of only one such scheme, either from the Centre or the state government. However, Pradyot said, "We will chalk out a plan in such a way that new units should get the benefit of both the capital subsidy schemes being offered by the Central government as well as the state government."
But, the new units will not get the benefit of other tax incentives such as excise and income tax, which have since expired under the special industrial package.
