Additional financial outlay of Rs.1164 crore approved

The Cabinet chaired by Hon’ble PM Shri Narendra Modi has approved an amount of Rs. 1164.53 cr. for Industrial Development Scheme (IDS), 2017 for Himachal Pradesh and Uttarakhand.

The government of India announced Industrial Development Scheme, 2017, in 2018 vide Notification No.2(2)/2018-SPS dated 23^rd April 2018 for the state of Himachal Pradesh and Uttarakhand. Under this scheme, the total financial outlay was Rs.131.90 crore. This allocated fund has been exhausted during the financial year 2021-22. Further, the requirement of an additional fund to meet the committed liabilities up to 2028-2029 is Rs.1164.53 Crore. For allocation of this additional financial outlay, approval of the Cabinet was solicited under Industrial Development Scheme, 2017.

The Cabinet, in its meeting held today, considered and approved the proposal of the Ministry of Commerce and Industry, Department for Promotion of Industry and Internal Trade for Central Sector Scheme for Industrial Development Scheme 2017 for Himachal Pradesh and Uttarakhand for additional fund requirement to meet the committed liabilities under the scheme upto 2028-29. As per the approval of additional funds under the above scheme, the following incentives would be benefitted under the scheme.

(i) Central Capital Investment Incentive for Access to Credit (CCIIAC):

All eligible new industrial units and existing industrial units on their substantial expansion in the manufacturing and service sector located anywhere in the States of Himachal Pradesh and Uttarakhand will be provided Central Capital Investment Incentive for access to credit (CCIIAC) @ 30% of the investment in Plant and Machinery with an upper limit of Rs.5.00 crore.

(ii) Central Comprehensive Insurance Incentive (CCII):

All eligible new industrial units and existing industrial units on their substantial expansion located anywhere in the states of HP and Uttarakhand will be eligible for reimbursement of 100% insurance premium on insurance of building and Plant & Machinery for a maximum period of 5 years from the date of commencement of commercial production/operation.

Expenditure involved:

The financial outlay of IDS, 2017 for the State of Himachal Pradesh & Uttarakhand was only Rs.131.90 crore, which was released during 2021-2022. Further, to meet the committed liabilities through the additional requirement of funds under the scheme up to 2028-29, the cabinet has approved the additional financial outlay amounting to Rs.1164.53 crore under the scheme.

It is anticipated to generate direct employment opportunities for about 48607 people by 774 registered units.

Industrial Development Scheme funding approved to extend incentives, support manufacturing expansion and employment creation through targeted investment and insurance incentives. Approval of additional central funds under the Industrial Development Scheme, 2017 to meet committed liabilities through 2028-29 and ensure continuity of scheme benefits for eligible industrial units. The scheme provides two principal incentives: Central Capital Investment Incentive for Access to Credit (CCIIAC), a percentage-based support on plant and machinery investment subject to an upper limit, and Central Comprehensive Insurance Incentive (CCII), full reimbursement of insurance premium on building and plant & machinery for a defined initial period from commencement of commercial production.