Rules Regarding Grant of Incentives,
Concessions & Facilities to Industrial Units in
Himachal Pradesh
Short Title and Commencement
These rules shall be called "Rules
Regarding Grant of Incentives, Concessions and Facilities
to Industrial Units in Himachal Pradesh, 1999" and shall
come into force w.e.f. the first day of April, 1999,
hereinafter referred to as the appointed day.
Objectives
The objectives of the incentives,
concessions and facilities scheme, 1999 are :
i) To achieve the objectives as announced by the Government
in the Industrial Policy Guidelines, 1999,
ii) To spell out the extent to which the State Government
proposes to provide benefits, incentives, concessions
and facilities to existing industrial units and units
to be set up in the State
Land/shed in industrial areas/estates developed/ acquired
and transferred to the Department of Industries shall
be allotted by the Department of Industries on lease hold/rental
basis for the establishment of industrial unit(s) at subsidised
premium/rent in industrially backward areas and reasonable
premium/rent in industrially developing areas, to be fixed
by a committee consisting of Secretary Industries to the
Government of H.P., Director of Industries & M.D.,HPSIDC.
Adequate land appropriately located may be set apart for
development of social infrastructure and public utilities
such as banks, post offices, educational institutions,
medical institutions, recreational facilities, shops etc
on commercial basis. For the purpose of industrial housing
for workers, land can be provided at concessional rate.
A separate set of guidelines shall be issued by the Government
for allotment of land for these purposes. Land in industrial
areas shall be allotted on lease hold basis by the Director
of Industries, or any other officer authorised by him/her,
for a period of 95 years subject to a maximum area of
10,000 sq.meters and in case of area exceeding 10,000
sq.meters, the same shall be allotted with the prior approval
of the Secretary (Industries) to the government of Himachal
Pradesh. 30% of the premium of land shall be payable at
the time of allotment and balance in 5 equal annual instalments.
The interest chargeable on delayed payment would be 18%
or as fixed by the Government from time to time. However,
if any party intends to make the entire payment in lump
sum it may be accepted by commuting the instalments but
the terms and conditions of the allotment shall remain
the same.
Subsidy
on the Cost of Preparation of Feasibility Report
New industrial unit(s) in tiny and
small scale sector will be eligible for subsidy on the
cost of preparation of feasibility report @ 50% of its
cost subject to a ceiling of Rs.10,000/- in case of
tiny unit(s) and Rs.20,000/- for SSI unit(s).
Facility
for Quality, Productivity, Technical Upgradation &
Pollution Control Devices
Government may provide common effluent
treatment plant(s)/pollution control devices and common
testing facilities in Industrial Areas/Estates/Growth
Centres or in a cluster of industries as a part of infrastructure.
The products of tiny/SSI units manufactured
in H.P. may be given a price preference of upto 15%
in the process of finalisation of rate contract(s) in
respect of purchases affected by the Government Departments,
Semi-Government Organisations, Corporations and Boards.
For large and medium industries, the price preference
may be upto 3%.
Tiny units in priority sector and coming into commercial
production after the appointed date in industrially backward
areas shall be given a capital investment subsidy @ 10%
of fixed capital investment subject to a ceiling of Rs.2.5
lacs per unit. This subsidy will be admissible on the
creation of new assets only. The sanction/ disbursement
shall be governed by the erstwhile C.I.S. Manual.
The eligible existing units shall have an option either
to opt for the General Sales Tax Concessions as provided
to Village Industries/Tiny unitsand Units in SSI/Medium
and Large Sector for the unexpired period and
subject to their continuing eligibility under the previously
applicable rules or to continue to avail these concessions
as per those rules. Such an option shall have to be
exercised by the 31st July, 1999 failing which they
shall be covered by the previously applicable rules.
The GST on the raw material, processing
and packaging material except timber, shale and limestone
used by the existing and new industrial unit(s) for
captive manufacturing within the State shall be leviable
at a concessional rate of 1% upto 31-03-2009.
New industrial unit(s) in priority
sector shall be exempted from payment of electricity
duty for a period of 8 years in the industrially backward
areas and for 5 years in industrially developing areas.Period
of this concession will commence from the date of commencement
of commerical production or from the date of notification
of Department of MPP and Power, whichever is later.The
existing unit(s) availing this incentive shall continue
to avail the same under the previous rules for the unexpired
period of its/their eligibility.
The existing eligible units availing power tariff freeze
subject to their continuing eligibility under the previously
applicable rules shall continue to avail the concession
as per those rules.
No electricity duty will be charged from any industrial
unit, new or existing, on the power generated from its
captive power generation set(s)/hydel plant(s).
The industrial units employing atleast 50 workers may
be permitted on case to case basis to build residential
complexes for industrial workers within the campus.
The rate of power tariff to such residential complexes
both new and existing shall be as applicable to domestic
consumers.
