Dehradun, 23 Jan 2008

The Uttarakhand government today announced its new industrial and power policy with a focus to attract investments in the hilly region of the state.

Following a cabinet meeting, Chief Minister B C Khanduri told reporters that a special package has been prepared for the hilly region under which special tax incentives would be given to industries, setting up their units in the hills for a period of 10 years.

The special package would remain in force for a period of ten years beginning from April 1, 2008, he said.

Under the new industrial policy, the government has made special provision for creating private industrial estates at an area comprising only 2 acres of land. Earlier, such facility was extended to 30 acre-long industrial estates under the industrial policy announced in 2003.

All those industries which are having an investment of Rs 5 crore has been given the status of big industries, a status which was earlier given to all industries with investment of Rs 50 crore in the state.

Special incentives including rebate in power tariffs would be given to all those industries which set up their units in the hills, Khanduri said.

The government also announced its new power policy in the cabinet meeting. Under the new power policy, the government would give special focus on small hydro projects and involve village panchayats in building hydel projects up to 5 MW.

News Source: http://www.outlookindia.com