Fiscal Incentives to new Industrial Units and to existing units on their substantial expansion:

(I). New industrial units and existing industrial units on their substantial expansion as defined, set up in Growth Centres, Industrial Infrastructure Development Centres (IIDCs), Industrial Estates, Export Processing Zones, Theme Parks (Food Processing Parks, Software Technology Parks, etc.) and other areas as notified from time to time by the Central Government, are entitled to :

(a) 100% (hundred percent) outright excise duty exemption for a period of 10 years from the date of commencement of commercial production.

(b) 100% income tax exemption for initial period of five years and thereafter 30% for companies and 25% for other than companies for a further period of five years for the entire states of Uttaranchal and Himachal Pradesh from the date of commencement of commercial production.

(II) All New industries in the notified location would be eligible for capital investment subsidy @ 15% of their investment in plant & machinery, subject to a ceiling of Rs.30 lakh. The existing units will also be entitled to this subsidy on their substantial expansion, as defined.

(III). Thrust Sector Industries as mentioned in Annexure-II are entitled to similar concessions as mentioned in para 3(I) & (II) above in the entire state of Uttranchal and Himachal Pradesh without any area restrictions.

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Development of Industrial Infrastructure:

(i) The funding pattern under the Growth Centre Scheme currently envisaging a Central assistance of Rs.10 crore per centre is raised to Rs.15 crore per centre.

(ii) The financing pattern of Integrated Infrastructure Development Centres (IIDC) between Government of India and SIDBI will change from 2:3 to 4:1, and the GOI funds would be in the nature of a grant, so as to provide the required infrastructural support.

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Other Incentives:

(i) Deen dayal Hathkargha Protsahan Yojna and other incentives of Ministry of Textiles: The funding pattern between Government of India and both the States would be changed from 50:50 to 90:10 under this Scheme. Ministry of Textiles would extend its package of incentives, as notified for North-Eastern States, to the states of Uttranchal and Himachal Pradesh also.

(ii) Ministry of Food Processing Industries would include Uttaranchal in difficult areas category. The state of Himachal Pradesh is already included in the difficult areas category.

(iii) Pradhan Mantri Rozgar Yojana (PMRY) : Ministry of Agro & Rural Industries would provide for states of Himachal Pradesh and Uttranchal relaxation under PMRY with respect to Age (i.e. 18-40 years from 18-35 years) and Subsidy ( @ 15% of the project cost subject to a ceiling of Rs.15,000/- per entrepreneur).

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General Incentives

• Central Sales Tax (C.S.T.) for small and medium industries on a selective basis will be reduced from 4 % to 1%.
  
• Subsidy on the rate of interest on loans taken by SSI units from financial institutions would be given to the tune of 2% subject to a ceiling of Rs. 2.00 lakhs per unit.
  
• Under the Transport Subsidy Scheme of Government of India, 50 % of transport cost on the basis of rates decided by the State Government or actual freight paid, which ever is less, will be provided as subsidy up to 5 years from the date of production.
  
• Assistance by way of equity/financial participation in infrastructure projects will be considered and provided on a case by case basis.
  

The provision of good quality, uninterrupted power to industrial units is one of the most crucial factors for ensuring rapid industrial growth. In this context, the following decisions have been taken :-

• In order to give a boost to the agro based and food processing industries, a special tarrif (lower than the normal industrial tariff) shall be introduced.
  
• As soon as the State Government gets its allocation from the Central Pool of Power, the peak hour restrictions on Small and Medium
• Industries (defined on the basis of power load upto 100 HP), are intended to be waived off.
  
• With the operationalisation of the Tehri Dam Project, waiver of peak hour restriction for all industries, including heavy industries , is proposed.
  
• Feeders with 75% or more of Industrial load will be provided uninterrupted power supply with immediate effect.
  

The time frame and methodology for load sanction of 11 KVA, 33KV/66KV and 132 KV would be as follows :-

Load sanction of 11 KVA Line
Sanction of load within 30 days.
Issue of demand notes and sanction another 30 days.
Release of connection from the date of completion of demand note = 60 days.

33 KV/66 KV Line
Sanction and Load and issue of demand note 60 days.
Issue of feasibility report = 45 days.
Release of connection after the compliance of demand note = 90 days.

132 KV and above
This sanction will be accorded in consultation with the Department of Industry at the Government level.