CCEA gave its approval for extension of the Special Package of Industrial Incentive for the States of Himachal Pradesh and Uttarakhand.
Government’s standing committee to review economic trends, Cabinet Committee on Economic Affairs (CCEA) has recently given its approval for extension of the special package of industrial incentive for the states of Himachal Pradesh and Uttarakhand from 7th January, 2013 to 31st March, 2017. The objective of the scheme is to boost industrial development to attract private investment in the two hill states.
The incentive also aims towards encouraging entrepreneurs to set up more industrial units in both the states for more employment generation.
Commerce and Industry Minister, Anand Sharma while welcoming the decision of the CCEA said, “The UPA Government has always been sensitive to the aspirations of the hill people. This decision will catalyse industrial development in Himachal Pradesh and Uttarakhand and generate gainful employment especially for the rural youth. It will also give a fillip to manufacturing and the SMEs in these two States.”
As per the press release issued by the ministry, all new industrial units and existing units on substantial expansion would be eligible for Central Capital Investment Subsidy at the rate of 15 percent of investment in plant and machinery subject to a ceiling of Rs 30 lakh. Further, the cap on amount of subsidy will be raised from Rs. 30 lakh to Rs.50 lakh for MSME units at the rate of 15 percent of their investment in plant and machinery.
The release further stated that the subsidy would be available to all new and existing units on substantial expansion located in notified areas as well as to “thrust industries" for units located anywhere in these States. It added that only those units that pre-register under the scheme, commence commercial production/ operation before 31st March 2017and file claims within one year of the commencement of commercial production shall be eligible for subsidy under the scheme.
Incentive on substantial expansion will be given to units affecting an increase by not less than 25 percent in the value of fixed capital investment in plant and machinery for the purpose of expansion of capacity. Expenditure on purchase / procurement / installation of second hand plant and machinery will not be eligible for subsidy under the Central Capital Investment Subsidy Scheme. A single unit cannot avail subsidy both from the Central as well as State Government for the same purpose, the ministry stated in the release.