Uttarakhand Hill Industrial Policy

The state govt of Uttarakhand has declared a new Hill Industrial Policy that came into effect on April 1, 2008.

Projects with investments more than Rs 5 crore will now be classified as mega project. Earlier this status was accorded to only those projects having investments more than Rs 50 crore under the 2003 industrial policy.

The minimum requirement of land for setting up a private industrial estate would now be 2 acres instead of 30 acres. These industrial areas would also be provided financial assistance up to Rs 50 lakh. There will be no stamp duty in the sale and lease deed of the land meant for industrial plots.

There will also be capital subsidy on fixed capital investment in building, plant and machinery at the rate of 25 per cent maximum of Rs 30 lakh in Group A while 20 percent with maximum of Rs 25 lakh in group B.

Under the special integrated industrial promotion policy of 2008, the government offers sops like up to 90 per cent rebate on value-added tax (VAT), exemption from stamp duty, heavy transport subsidy and a rebate on power tariffs.

The Uttarakhand government is also looking for new entrepreneurs venturing in eco-tourism, adventure sports and the service sectors, who can take advantage of the new policy.

With the aim of attracting small units, the Uttaranchal Govt is offering sops for a period of 10 years under the new hill industrial policy.

The state government of Uttarakhand has also declared the hotels and ropeways, as industries in the new Hill Policy. The government of Uttarakhand has given many relaxations to establish industries in hilly areas.