Industrial Development Scheme for Himachal & Uttarakhand

Dehradun, May 1 (KNN) The Industrial Development Scheme announced for the States of Himachal Pradesh and Uttarakhand will be effective for five years under which the eligible industrial units would have to register under the Scheme with Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India.

The units can register through the DIPP portal prior to being eligible for any benefit under this scheme. In this regard, an online application process will be developed under which the applicants have to submit applications along with the DPR.

The scheme will be effective from 1.04.2017 and will remain in force up to 31.03.2022.

All new industrial units and existing industrial units undertaking substantial expansion in manufacturing sector and services sector including Bio-technology and Hydel Power Generation Units upto 10 MW located in the states of H.P. & Uttarakhand will be eligible for incentives under the scheme.

However, some industries like into making of tobacco, pan masala, Plastic carry bags of less than 20 micron, units not complying with environment standards, Gold and gold dore etc will not be eligible under the scheme.

The eligible industrial units will be entitled to benefits under one or more components of this scheme, even if such units are getting benefits under other schemes of the Government of India.

Under the scheme, new industrial units as well as existing industrial units on substantial expansion will be eligible.

However, a new unit should not be formed by splitting up, or reconstruction of a business already in existence; it should not be formed by transfer to the new unit of plant or machinery previously used for any other purpose; or it should also not have been relocated from elsewhere and/or is not an existing unit reopened under a new name and style.

Under the scheme, there will be two types of investments - Central Capital Investment Incentive for access to credit (CCIIAC) and Central Comprehensive Insurance Incentive (CCII).

There will be an Empowered Committee chaired by Secretary, Department of Industrial Policy and Promotion with Secretaries of some other departments and representative of NITI Aayog to examine the proposal.

While examining the proposals for incentive, due consideration will be given to factors like cost disadvantage, project viability, bankability, employment generation and promoters’ risk capital. Preference will also be given to eligible industrial units under the Micro, Small and Medium Enterprises (MSME).

The notification issued by the government said that the units in the state will be provided central capital investment incentive for access to credit at the rate of 30% of the investment in plant and machinery with an upper limit of Rs 5 crore.

“The project cost will need to be appraised by a Scheduled Commercial Bank or Financial Institution before the proposal of assistance is approved by the Empowered Committee of DIPP,” the notification said.

The units will be eligible for an interest incentive of 3% on working capital credit advanced by the scheduled banks or central or state financial institutions for first five years from the date of commencement of commercial operation.

The final grant of registration/in-principle approval will be decided by the Committee, which will, inter-alia, consider the prima-facie eligibility of the industrial unit, availability of budget and decide the eligibility for registration under the Scheme.

The units should start commercial production within 18 months of approval, while the units which have commenced production on or after 1.4.2017 will be allowed to register with DIPP upto 30.9.2018. (KNN Bureau)