Himachal Pradesh
Himachal Pradesh is situated in the north-west corner of India in the lap. Agriculture and horticulture are the mainstay of Himachal economy, as 71% of the people are engaged in it. The Land area of Himachal Pradesh is 55,673 sq. km. with a Population of 5.2 million. The state continues to be industrially backward despite vast natural resources endowment and availability of cheap hydel power. Its priority sectors are Agro-processing, Hydro-electric power, Tourism and electronics. It has a power surplus of 30.43%. The Per Capita Income in Himachal Pradesh is Rs 7,784 and the Inflation Rate is 11.1%. Himachal Pradesh has a relatively stable government, and a responsible local administration. The government offers numerous incentives to new industries, with special emphasis on tourism. The massive supply of power is an added advantage to new industries. Despite these, Himachal has poor railway and road connections with the rest of the country.
Incentives:
75% subsidy on the cost of feasibility studies (up to Rs 100,000) for medium and large scale units.
Out-of-turn allotments of plots and sheds for priority-sector industries.
Reimbursement of the cost of land and shed for new priority-sector units in Category A blocks.
Investment subsidy for tiny industrial units of up to 15% (up to Rs 75,000) of project cost.
5% interest rate subsidy for tiny and small-scale units in Category A and Category B blocks.
50% subsidy on consultancy fees for projects set up by non-resident Indians.
Concessional 1% rate of sales tax for 12 years (Category A); 9 years (Category B); and 6 years (Category C).
Deferment of sales tax (up to 200% for 6 to 9 years) of the fixed capital investment.
Industrial Policy -2004
Introduction
The Government of Himachal Pradesh recognizes the importance of an emphatic Industrial Policy statement as an extremely effective instrument to boost the confidence of investors and catalyse industrial expansion in our State. This Policy is therefore intended to lucidly express the State Government’s vision and approach towards industrial sector. This policy also intends to specifically announce the State Government strategy to address a wide range of macro policy issues aimed at boosting investment climate in the State by way of creating and upgrading the existing infrastructure, rationalizing the provision of incentives, concessions and facilities as well as streamlining rules/procedures having a direct impact on investment flows to the State. The Policy Statement also intends to focus on specific micro factors affecting the overall investment climate in the State such as technology upgradation, quality improvement and productivity, so that industrial units set up in the State can effectively compete and keep pace with global standards.
The Liberalisation era that the Country is now witnessing has spurred an intense, inter-state competition to attract industrial investments. This calls for the State Government to play an increasingly proactive role as facilitator of industrial development. This necessarily requires benchmarking of our policies and approach to industrialization with not only the best in the country but with world class standards, particularly if we are to target at attracting both domestic and foreign direct investments. We, therefore, recognize the need to continuously scan and review the practices followed by more progressive States in the Country and fine tune it with our approach, strategies, and policy so as to keep in tandem with the rapidly changing economic environment, domestically and internationally. This Policy statement is a reflection of the Government's commitment to overall economic development of the State by continuously responding to the dynamic economic forces and carving out a niche in the national economy by responding to changing times and needs.
