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Why Invest in Himachal?

Himachal

  • Himachal Pradesh, known for its pristine beauty, is one Of the most visited State in Northern India and is bordered by Jammu and Kashmir on north, Punjab on west and South-West, Haryana on South,
  • Uttarakhand on South-East, and China on East. The State has made a significant transition from agrarian to an industrial economy; with a quantum jump from a mere 7% contribution of secondary sector to GSDP in 1950-51 to a 43.01% in 2017-18.
  • The State GSDP at current prices is INR 1.53 lakh crore (USD 25 bn) in FY2018-19. 
  • The compounded annual growth rate (ICAGR) of GSDP of Himachal Pradesh grew at 11.02% from FY2012 to FY2018.
  • The Per Capita Income at current prices is INR 1.60 Lakh (USD 2,285) in FY2018 registering a growth of 7.8%.
Vegetables
  • Production (in MT) 1722.14
Potato
  • Production (in MT) 186.80
Rice
  • Production (in MT) 146.68
Maize
  • Production (in MT) 771.11
Ragi
  • Production (in MT) 1.82
Millets
  • Production (in MT) 4.12
Wheat
  • Production (in MT) 682.63
Pulses
  • Production (in MT) 53.60

Year

Area Hect. (‘1000)

Production ('000 MT)

Production (MT) Per hectare

2016-17

752.88

1562.73

2.07

2017-18

748.72

1581.42

2.11

2018-19

732.62

 

2.31

2019-20 (Target)

764.25

1636.18

2.14

Indicators

2017-18

2018-19

2017-18

2018-19

In Lakh Tonnes

(Absolute Value)

% change over the previous year

Food grains production

15.81

16.92

1.15

7.0

Fruit production

5.65

4.95

(07.6

12.4


Major Players Present in the State

State Profile of Himachal

District SPV Name Contact Details Total Land Total Leasable Area Avail Area Sector Status
Una Cremica Food Park Pvt Ltd Name: Akshay Bector,
Designation: Managing Director/MD
Mob: 9815400084
Email id: akshaybector[at]cremica[dot]com
52.4 Acre 23.83 Acre 10.39 Acre Fruits & vegetables, Foodgrains Operational
Project Name Contact Location Status
M/s Great Himalayan Farm Fresh Mr. Madan Lal Kapoor Email: ghfoodpark[at]gmail[dot]com, Mob. No. 9805026447, Village Salol, Mohal Prei, Tehsil Kangra, Prei, Distt. Kangra, Himachal Pradesh Under Implementation
Project Sector District Milk/Storage Proccessing (Lakh Litre Per Day) Total Capacity of Cold Storage/ CA/MA Storage/Frozen Store (Lakh MT) Reefer carriers & Tanker (Nos) Status
Dev Bhumi Cold Chain Ltd F&V Shimla - 0.01 2 Completed
Aromatrix Flora Pvt Ltd F&V Solan  - 0.03 5 Completed
Hillcrest Foods F&v Solan - 0.023 4 Completed
Canvas Integrated Cold Chain F&V Una - 0.07 6 Completed
Fresh Produce Impex F&V Shimla  - 0.02 7 Completed
Himalaya Cotton Yarn Ltd. F&V Solan  - 0.01 2 Completed
Adani Agri Fresh Ltd. F&V Shimla  - 0.024 2 Completed
Him Fresh Produce Co. F&V Shimla  - 0.02 2 Completed
Paonta Sahib Food Corporation F&V Solan - 0.025 2 Completed
Pulkit Fresh & Healthy F&V Solan  - 0.02 8 Completed
Sai All Season Fruits & Vegetable F&V Solan - 0.013 4 Under Implementation
Om CA Store, a Unit of Om Hospitalities and Resorts F&V Solan - 0.018 5 Under Implementation
ANGD Fruit Ranch Pvt. Ltd. F&V Shimla  - 0.056 8 Under Implementation
Himachal Pradesh State Agriculture Marketing Board HPSAMB F&V Shimla  - 0.07 5 Under Implementation
Bija Agrifresh Private Limited F&V Kullu - 0.0522 1 Under Implementation
Shiva Agri Fresh F&V Shimla  - 0.03 2 Under Implementation
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S. No. District ODOP
1. Bilaspur Turmeric
2. Chamba Apple
3. Hamirpur Milk and Dairy Products
4. Kangra Mango
5. Kinnaur Fruit Wine
6. Kullu Apple
7. Lahaul & Spiti Sea buckthorn
8. Mandi Peas and Vegetables
9. Shimla Apple
10. Sirmaur Ginger and Garlic
11. Solan Mushroom
12. Una Potato

State Policy & Fiscal Incentives

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Policy & Incentives Description
Name of Policy
  • Himachal Pradesh Industrial Investment Policy, 2019

Nodal Agency
  • Department of Industries has been appointed as the nodal department.

Single Window Clearance System
Power/Electricity Subsidy
  • Eligible industry enterprises would be charged a concessional rate of electricity duty as per the given table below.

    Sr.No. Category Concessional rate of electricity duty
    1. Extra Higo Tension (EHT) category consumer supply voltage exceeding 33KVA ) 7% for five years and thereafter as per applicable prevailing rate.
    2. Large industrial consumers (with connected demand 100 KW and supply voltage not exceeding 33 KVA) 5% for five years and thereafter as per applicable prevailing rate. Or five years and
    3. Medium industrial consumers ( with connected demand 15 to 100 KVA) 3% for five years and thereafter as per applicable prevailing rate.
    4. Small industrial consumers ( with connected demand up to 50 KVA) 1% for five years and thereafter as per applicable prevailing rate
    5. All industrial consumers including EHT category consumers which employ more than 300 Himachlies 1% for five years and thereafter ED rate would be as per rates applicable under respective category.
    6. Exemption from payment of electricity duty on power generated for captive / standby generation through DG set(s) up to 31-03-2023
  • Concessional rate of electricity charges: (excluding any surcharge Peak load exemption charge, winter charge, fuel adjustment charge, service charge, CST or any other charge under any name in the tariff Schedule)

    • Eligible enterprises would be charged energy charges 15% lower than the approved energy charges for the respective category for, a period of 3 years.

    • Existing industrial consumers, a rebate of 15% on energy charges shall be applicable for additional power consumption beyond the level of preceding financial year.

    • Incentives of concessional rate of electricity charges would be notified in the Schedule of Tariff for Himachal Pradesh on year to year basis by the H.P. State Electricity Board and it would not be binding upon {he State Government during the applicability of Policy.

Capital Subsidy

    Technology Up-gradation/ Establishment / Modernization of FPIs (Cost of Plant & Machinery & Technical Civil Works).

  • Financial assistance to food processing units in the form of grant-in-aid with 33.33% of the cost of Plant & machinery and technical civil works, subject to a maximum of Rs. 75 lakhs throughout the State.

  • Cold Chain, Value Addition and Preservation Infrastructure (for non-horticultural products) under SMFP

  • Grant-in-aid: Grant-in-aid @ 50% of the bank appraised project cost or 50% of actual investment on building, Plant & Machinery whichever is less subject to a maximum of Rs. 5 Crore per project

  • Modernization of Meat Shops under State Mission of Food Processing

  • 75% of the cost of Machinery/Equipment and Technical Civil Works (TCW) and other eligible items mentioned in Para 5 above subject to maximum of Rs. 5.00 lakh under the scheme Modernization of Meat hops under State Mission of Food.

  • Processing.

    Setting up of Primary Processing Centers / Collection Centers in the rural areas under State Mission on Food Processing

  • Grant-in-aid for PPC/CC will be provided @ 75% of the eligible project cost up to maximum of amount of Rs. 2.50 crore.

  • Reefer Vehicles

  • Refer Vehicles/ Mobile Pre-Cooling vans: Credit linked back ended grants in aid @ 50% of the cost of New Reefer Vehicle(s) / Mobile pre-cooling van(s) upto a maximum of Rs. 50.00 lakh. The reefer unit and refer cabinet permanently mounted on the vehicle are eligible.

  • Reimbursement of 50% of expenses incurred for the setting up in house testing facilities and equipments required for obtaining certification of Bureau of Indian Standards / World Health Organization – GMP / ISO / Organic Certification / any International Certification excluding Plant and Machinery / equipments used directly in manufacturing process or rendering of services subject to maximum of Rs. 5 Lakhs per enterprise

Interest Subsidy

    Cold Chain, Value Addition and Preservation Infrastructure (for non-horticultural products) under SMFP

  • The interest subvention will be for a period of 7 years from the date of completion of the project and commencement of commercial production as certified by concerned GM, DIC/MS,SWCA. Every year the interest subsidy @ 7% will be paid to the Bank/FI directly against the term loan sanctioned and availed by it, subject to a maximum of Rs. 25.00 lakhs per year.

  • Micro, Small and Medium Enterprises (MSME)

  • Interest Subvention @ 3% on term loan subject to a maximum of Rs.2 lakhs, Rs.4 lakhs and Rs.6 lakhs per annum for a period of 03 years in Category A, B & C areas respectively.

  • Large Enterprises

  • Interest Subvention @ 3% on term loan subject to a maximum of Rs.10 lakhs, Rs.15 lakhs and Rs. 20 lakhs per annum for a period of 03 years in Category A, B & C areas respectively.

VAT/CST/SGST/TAX Exemption/Reimbursement
  • All eligible enterprise(s) would be provided reimbursement of Net SGST subject to maximum limit of 80% of Fixed Capital Investment(FCI) during admissible period of this incentive as per following detail :-

    Category of enterprises Area-Wise SGST Reimbursement Admissible Period
      A B C  
    MSME s 50% 80% 90% 7 years
    Large 50% 70% 80% 5 Years
    Anchor 100% 100% 100% 7 years
    Above mentioned incentive would be Admissible subject to fulfilment of the following conditions:
    • Quantum of incentive would be available only on net SGST paid and deposited with state per annum by the eligible unit the admissibility of incentive shall cease either on exhaustion of the applicable limit or on the completion of the eligibility period, whichever is earlier.

    • In case of any false declaration, misrepresentation/suppression Of facts the amount of incentive so availed shall be liable to be recovered along with 12% compound interest per annum per penalty as decided by the State Government as per application laws.

    • The eligible unit has to obtain verified Udyog Aadhar memorandum (UAM)/ commencement of commercial production certificate from the authorized officers of the Department of Industries, Government of Himachal Pradesh. The eligible unit will obtain certificate from the Department state excise & Taxation clearly mentioning the amount of net SGST paid to the state of Himachal Pradesh.

    • Net SGST reimbursement would be available only after the date of Commencement of Commercial production (CoP)/ operation for new unit and from the date of Commercial production/operation after undertaking substantial expansion for existing enterprise(s).

    • The eligible enterprises) will submit reimbursement claim of the financial year to the Department of Industries on annual basis in the succeeding financial year before 31st August.

VAT/CST/SGST/TAX Exemption/Reimbursement
  • Eligible Enterprise(s) would be charged stamp duty @ 50%, 30% & 10% for MSMEs and @ 50% , 30% & 20% for charge & Anchor enterprises applicable rate in Category 'A', 'B' & 'C' area respectively on instrument of conveyance deed or lease deed for setting up or expansion of enterprise(s) as notified by Revenue department from time to time.

Employment Generation

    Incentive to encourage employment of Bonafide Himachali

  • Existing as well as new Enterprise giving employment to Bonafide Himachlies over and above 80% on regular basis would be eligible for incentive of Rs.1000 per month per additional employment generated over and above of 50 Bonafide Himachlies for ten years from the date of production.

  • Bonafide Himachalies employed by the industrial enterprises would be eligible for skill development allowance as notified by the Department of Labour & Employment under Skill Development Allowance Scheme-2018

Freight/Transport Subsidy

Micro, Small and Medium Enterprises (MSME)

  • Assistance for transportation of Plant & Machinery: Reimbursement of 50% of cost incurred on inland carriage and inland transit insurance of Plant and Machinery subject to maximum of Rs.2 lakhs per enterprise in Category ‘A’ area and Rs.3 lakhs in Category ‘B’& ‘C’ areas.

  • Transport Subsidy: Enterprises located in Category B areas would be reimbursed actual expenditure incurred on transportation of raw materials & finished products within the state or 3% of annual turnover, whichever is lower, subject to maximum of Rs.10 lakhs per annum for a period of 3 years. While enterprises in Category C would be reimbursed actual expenditure incurred on transportation of raw materials & finished products within the state or 5% of annual turnover, whichever is lower, subject to maximum of Rs.10 lakhs per annum for a period of 5 years.

  • Reimbursement of 50% of cost incurred on inland carriage and inland transit insurance of Plant and Machinery subject to maximum of Rs.2 lakhs per enterprise in Category ‘A’ area and Rs.3 lakhs in Category ‘B’ & ‘C’ areas

  • Eligible Industrial Enterprises set up in category B & C Areas would be incentivized to compensate high cost of transportation within the State, irrespective of fact that source of purchase or destination of sale is within or outside the State that.

  • Enterprises located in Category B areas would be reimbursed actual expenditure incurred on transportation of raw materials & finished products within the state or 3% of annual turnover, whichever is lower, subject to maximum of Rs.10 lakhs per annum for a period of 3 years.

  • Enterprises located in Category C areas would be reimbursed actual expenditure incurred on transportation of raw materials & finished products within the state or 5% of annual turnover, whichever is lower, subject to maximum of Rs.10 lakhs per annum for a period of 5 years.

Others

    Micro, Small and Medium Enterprises (MSME)

  • Allotment of Land and Industrial Sheds: Concession to the tune of 50%, 60% & 70% of rate/premium fixed for land or industrial sheds in category A, B and C respectively will be given to enterprises provided it commences commercial production/operation within 2 years of handing over of possession of land or within a period of 1 year of handing over possession of Industrial Shed, as the case may be. This concession will be adjusted in future instalments.

  • Easy Payment schedule of land/shed premium: 12% of the premium of land/ shed shall be realized before handing over of possession and balance in 8 equal annual interest free instalments. In case allottee after commencement of production or any subsequent stage offers to clear balance payment of premium in lump sum, rebate of 10% on balance premium of land/shed will be given.

  • Provisions of extension in provisional allotment period: The land/ plot will be provisionally allotted for a period of two years from the date of handing over of the possession. However period of the provisional allotment can be extended up to 5 years from the date of handing over possession by charging nominal extension fee. The Industrial shed will be provisionally allotted for a period of one year from the date of handing over of the possession, however period of the provisional allotment can be extended up to 2 years from the date of handing over possession by charging nominal extension fee.

  • Provision to rent out surplus built up area for industrial use: Industrial Enterprise in production may be allowed to rent out up to 49% of built up area for setting up of Industrial Enterprise(s) to manufacturing the new item(s) by charging nominal processing fee.

  • Exemption from payment of Change in Land Use charges: Enterprise set up in Category B & C areas would be exempted from payment of the change in land use charges levied under the provisions of H.P. Town and Country Planning Act – 1977.

  • Assistance for access to Technology, Competitiveness, Innovation and Quality Certification: Reimbursement of 50% of expenses incurred for the setting up in house testing facilities and equipments required for obtaining certification of Bureau of Indian Standards / World Health Organization – GMP / ISO / Organic Certification / any International Certification excluding Plant and Machinery / equipments used directly in manufacturing process or rendering of services subject to maximum of Rs. 5 Lakhs per enterprise.

  • Assistance to encourage water conservation: 25% of expenditure incurred for the purchase of Plant & Machinery / equipments for setting up of Effluent Treatment Plant (ETP), rain water harvesting system excluding expenditure incurred on construction, subject to maximum of Rs.2 lakhs per enterprise.

  • Additional Incentives for Special Category of Entrepreneurs.

  • Enterprises of persons belonging to the Scheduled Castes, Schedule Tribes, Below Poverty Line(BPL) families; women, ex-serviceman, person(s) with disabilities, persons affected with HIV/AIDS and single member companies promoted by aforesaid persons (Special Category of Entrepreneurs) are entitled for availing incentives, concessions and facilities, as being provided to MSMEs in this policy and also to avail following additional incentives:

  • Reimbursement of 90% of the charges paid to the consultant for preparation of DPR; certification / valuation of Technical Civil Works, subject to maximum of Rs.20,000 for Micro; Rs.50,000 for Small andRs.1,00,000 for Medium Sector Enterprises.

  • Out of turn allotment of plot / shed available in Industrial Areas / Estates exclusively to the Persons with Disabilities.

  • Interest Subvention @ 5% on term loan for a period of 5 years subject to a maximum ceiling of Rs.3 lakhs, Rs.5 lakhs and Rs.7 lakhs per annum in Category A, B & C areas respectively subject to condition that interest subsidy would be calculated on simple interest.

  • Reimbursement of 100% of cost incurred on inland carriage and inland transit insurance of Plant and Machinery after Commencement of Commercial Production subject to maximum of 3 lakhs.

  • Assistance for Patent Filing and use of green fuel

  • Reimbursement of Rs.10 lakhs or 75% of expenditure incurred/charges paid to patent attorney, patent service centre and patent filling agency for obtaining patent, whichever is lower.

  • Reimbursement of 50% of cost incurred within the factory premises to fuel manufacturing process with gas/ solar power or to use it as an alternate power backup, subject to maximum of Rs.3 lakhs per enterprise.

  • Incentives to EOUs for Promotion of Export

  • Reimbursement of cost incurred for shipment of export samples from the port/ container depot to the port of destination subject to maximum of Rs.1,00,000/- per Enterprise during its period of operation.

  • Reimbursement of 50% of the cost incurred on publishing export marketing brochures/ product literature and participating in the relevant overseas trade fairs approved by the Government of India/State Government with a ceiling of Rs.3,00,000/- per Enterprise during its period of operation.

  • Renewable Energy based pilot cold chain projects:

  • Grant in aid @ 90% of the bank appraised cost including the cost towards setting up of the solar power plant, subject to a maximum of Rs. 5 cores. There will be no component of interest subsidy

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