State Profile of Himachal

• Himachal Pradesh Industrial Investment Policy, 2019

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

• Single Window Clearance System ( https://emerginghimachal.hp.gov.in/sso/investor/signin 

Concessional rate of Electricity Duty:

• 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 High 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.
  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 upto 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.

  • Assistance to encourage water conservation; compliances of Environment, Health and Safety Standards:

    Eligible enterprises would be reimbursed: -

    a) 25% of expenditure incurred for the purchase of Plant & Machinery / equipment’s 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.

    b) 50% of Power Tariff paid for running of ETP for a period of 3 years, subject to maximum of Rs.1 lakh per annum. This incentive would be disbursed subject to installation of separate electricity meter/sub-meter exclusively for running of ETP.

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

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.

Special Categories of entrepreneurs

• 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.

Micro, Small and Medium Enterprises (MSME

• Reimbursement of Net SGST paid to the State Government under H.P. GST Act 2017 @ 50%, 80% and 90% for a period 7 years, up to a maximum of 80% of the Fixed Capital Investment in Category A, B and C areas respectively for MSME.
• Concessional rate of Stamp Duty and registration fee for Stamp Duty and registration fee @ 50%, 30% & 10% of applicable rates would be charged in Category ‘A’, ‘B’ & ‘C’ areas on instrument of conveyance deed or lease deed for large enterprises.

Large enterprises

• Reimbursement of Net SGST paid to the State Government under H.P. GST Act 2017 @ 50%, 70% and 80% for a period 7 years, up to a maximum of 80% of the Fixed Capital Investment in Category A, B and C areas respectively for large enterprises.

Concessional rate of Stamp Duty and registration fee for Stamp Duty and registration fee @ 50%, 30% & 20% of applicable rates would be charged in Category ‘A’, ‘B’ & ‘C’ areas on instrument of conveyance deed or lease deed for large enterprises.

• 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.

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

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.

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.