No. 1 (10) / 2001 - NER
Government of India
Ministry of Commerce & Industry
(Department of Industrial Policy & Promotion)
1. The Hon''ble Prime Minister, during the visit
to Uttaranchal from 29th to 31st March, 2002, had, inter-alia
made an announcement that "Tax and Central Excise concessions
to attract investments in the industrial sector will be worked
out for the Special Category States including Uttaranchal. The
industries eligible for such incentives will be environment friendly
with potential for local employment generation and use of local
2. In pursuance of the above announcement, discussion
on Strategy and Action Plan for Development of Industries and
generation of employment in the states of Uttaranchal and Himachal
Pradesh were held with the various related Ministries/agencies
on the issue, inter-alia, infrastructure, development, financial
concessions and to provide easy market access, The new initiatives
would provide the required incentives as well as an enabling environment
for industrial development, improve availability of capital and
increase market access to provide a fillip to the private investment
in the state.
3. Accordingly, it has been decided to provide
the following package of incentives for the states of Uttaranchal
and Himachal Pradesh.
3.1 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.) as stated in
Annexure-I 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
Lakhs. 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 Uttaranchal
and Himachal Pradesh without any area restrictions.
3.2 Development of Industrial Infrastructure:
(i) The funding pattern under the Growth Centre Scheme currently
envisaging a Central assistance of Rs.10 Crores 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
3.3 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 Uttaranchal 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 Uttaranchal 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).
3.4 Ineligible Industries under the policy:
The list of industries excluded from the purview of proposed concessions
is at Annexure-III.In addition, the Doon Valley Notification (S.O.No.
102(E) dated 1st February, 1989 (Annexure-IV) as amended from
time to time, issued by Ministry of Environment & Forests
would continue to operate in the Doon Valley area and the industries
notified under it are excluded from the proposed concessions,
in the state of Uttaranchal.
3.5 Nodal Agency
The Nodal Agency for routing the subsidies/incentives under various
schemes under this Policy will be notified seperately.
4. Government reserves the right to modify any
part of the policy in the interest of public.
5. The Ministry of Finance & Company Affairs
(Department of Revenue), Ministry of Agro & Rural Industries,
Ministry of Textiles, Ministry of Food Processing Industries,
Ministry of Small Scale Industries, etc. are requested to amend
Act/rules/notifications, etc. and issue necessary instructions
for giving effect to these decisions.
Joint Secretary to the Govt of India