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 and other areas as notified from time to time by the Central Government are entitled to:
(a) 100% (hundred per cent) 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 fie years and there after 30% for companies and 25% for other than companies for a further period of five years for the entire State of Uttarakhand 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 (i) & (ii) above in the entire State of Uttarakhand without any area restrictions.
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 SIOB! 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.
(i) Deendayal 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 State of Uttarakhand also.
(ii) Ministry of Food Processing Industries would include Uttarakhand in difficult areas category.
(iii) Pradhan Mantri Rozgar Yojana (PMRY) : Ministry of Agro & Rural Industries would provide for State of Uttarakhand 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).
Ineligible Industries under the policy:
The list of Industries exclude from the purview of proposed concessions is at Annexure-III.
In addition, the Doon Valley Notification S.O.No. 102(E0 dated 1 Feburary, 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 Uttarakhand.
The Nodal Agency for routing the subsidies/incentives under various schemes under this Policy will be notified separately.
F.No. 1 (10) 2001-NER. The Government of India is pleased to make the following scheme of Central Grant or Subsidy for Industrial units in the State of Uttarakhand with a view to accelerating the industrial development in the States.
Commencement and duration of the Scheme
Applicability of the Scheme
Extent of admissible subsidy
6.1 Similarly benefits would also be extended to the new industrial units or to the existing units, on their substantial expansion, in other Growth Centres or HOC or industrial estates/parks/export promotion zones and commercial estates set up by the Government of Uttarakhand, new industrial unit or to the existing units, on their substantial expansion in the specified thrust industries located outside these growth centres and other identified location, would also be eligible for similar fiscal incentives.
Plant & Machinery
Procedure for claiming Capital investment Subsidy
Procedure for disbursement of Capital Investment subsidy
In respect of a new industrial unit set up without assistance from the
financial institutions or the State Government, the subsidy will be disbursed
to the unit by designated Agency on the recommendation of the State government
at the time the unit goes into production. Similarly, in respect of substantial
expansion by an existing industrial unit without assistance from the financial
institutions of the State Government, the subsidy will be disbursed to
the unit by Designated Agency on the recommendation of the State Government
after substantial expansion has been effected and the unit has gone into
the increased production. However, in such case, where the State Government
is satisfied about the safety of the public funds, not more than half
of the amount of the estimated subsidy may be released prior to the unit
going into production on the entrepreneur’s furnishing a proof of
having taken effective steps to the satisfaction of state directorate
of industries and the remaining amount be released only after the unit
goes into production.
Rights of the Centre/State Government/Financial Institutions
12. Without taking prior approval of the Ministry of Commerce & Industry Department of Industrial Policy and Promotion/State Government/Financial Institution concerned, no owner of an industrial unit after receiving a part of the whole of the grant or subsidy, will be allowed to change the location of the whole or any part of industrial unit or effect any substantial contraction or disposal of a substantial part of its total fixed capital investment, within a period of 5 years after its going into production.
13. In respect of all units to whom the grant or subsidy has been disbursed by the Financial Institution/State Government, certificate of utilization of the grant or subsidy for the purpose for which it was given, shall be furnished to the Central Ministry of Commerce & Industry, department of industrial policy and promotion by the financial institution/State Government within a period of one year from the date of receipt of the last installment/full amount.