In its endeavor to push the industry to hilly regions, the Uttarakhand government has made amendments in its 2008 hill industrial policy, extending benefits till 2025 and has decided to set up 11 new industrial hubs, complete with modern infrastructure.
A decision to this effect was taken in a meeting of the state cabinet presided over by chief minister Mr BC Khanduri.
Mr Rakesh Sharma principal secretary industries of Uttarakhand said that "We are giving another reason to the industries to set up their units in the hilly regions and promote entrepreneurial skills adding, a big budgetary provision has been kept for promoting the hill industrial policy.”
Though the hill policy had attracted over INR 220 crore in terms of investments during the past three years, it failed to entice manufacturing units.
The policy, which was brought in 2008, by Khanduri for a period of ten years would now be available till 2025. Industries setting up new units would get all the incentives like transport subsidy and price purchase preferences for ten years in case they come into production by 2015. In the subsequent period, if the industries are set up in 2016, the incentives will be available for only nine years, in 2017 for eight years and for seven years if set up in 2018. The policy would end in 2018 only.
The policy envisages a capital subsidy on fixed capital investment in building, plant and machinery at the rate of 25%. This was a maximum of INR 3 million which has now been doubled to a limit of INR 6 million.
Industries going for sizeable expansion either by investing 25% of the total investment or increasing the production output by more than 25% would also be entitled for all the benefits.
The government has also decided to set up 11 new industrial hubs in the hilly region and create high level infrastructure there. The State Industrial and Infrastructure Development Corporation fo Uttarakhand Limited (Sidcul), which is credited for heavy industrialisation in the plains, has been roped in to develop these 11 new industrial hubs in the hills. All these hubs will be set up at the district headqaurters of the respective districts and provided with all modern infrastructure facilities.
(Sourced from BS)
