The Union Territory of Dadra & Nagar Haveli is declared as one of the No Industry Districts of the country vide notification F.No.7/(15)/71-IC dated.30.09.1972.
Dadra & Nagar Haveli is a predominantly a backward area in both the way, economically as well industrially. It has an area of 491Sq.kms. and surrounded by State of Gujarat and Maharashtra, which are having a very healthy position, economical and industrial. Further the U.T. is located at almost equal distance from Mumbai, an Business/Economic capital of the country and Surat a Business/economic capital of Gujarat State. West sea coast is just 30 kms. Away and nearest railway station is Vapi on Western railway which is 15 kms. from Silvassa, the Head Quarter of Dadra & Nagar Haveli. Thus U.T. has a locational advantage. U.T. has very thin/less population but 88% of them are adivasis/backward who do not possess industrial skill and discipline and as a result has a problem of unemployment.
After liberation from Portuguese regime in 1954 and merger with the Union of India in 1962 the Administrator has started taking effective steps for the up liftment of the area. The industrial development has started on a very low key bases during the year 1965 by establishing a industrial estate under co-operative sector namely Dan Udyog Sahakari Sangh Ltd., which was having nearly 130 plots. Since this is Union Territory without legislature there was no Sales Tax and it was a huge benefit, attraction for the entrepreneurs. Since the Administration was having an environment friendly attitude, it did not allow any polluting Unit and lacking in industrial infrastructure. Even though the industrial pace was good and upto 1970 a good number of Units have been established in the territory, that is about 30 Units, namely Engineering, Fabrics weaving Units and a dyeing and printing Unit, providing good employment to local tribes.
In 1971, Government of India has declared U.T. as industrially backward area/district and extended the Scheme of 10% cash subsidy to the industrial units on their capital investment. The quantum of subsidy was increased gradually to 15% and 25% subsequently which resulted in speedy industrial development of the territory. This Scheme was terminated from 30th September 1988 and during this period the Government has disbursed subsidy to the tune of Rs.12.5Crores to the Units established.
Meanwhile from January 1984 the Sales Tax Act was implemented and the Industrial Units who so ever establishes were eligible for sales tax exemption for the period of 15 years. This Scheme was in force upto 1998. At present the new established Units are getting the benefit of Central Sales Tax exemption which is available upto the year 2017.
Further the territory has established a very good net work of electricity which is being made available from Central grid and hence the electricity which is a main source of energy for the industry was very cheap compared to the adjoining area and being a comparatively small area network easy maintenance results in very less interruption. The territory has one 220 KVA Sub station and a network of 66 KVA all over the territory. Hence the industry in any corner of the territory gets the power without delay. Due to availability of power from central grid and less maintenance cost the ultimate power tariff is very less in comparison to adjoining states and other areas. The rate is at present Rs.2.75 per Unit. This has attracted many industries which has continuous process or required uninterrupted power.
