Uttarakhand approves new policy for MSMEs; industry delighted

Dehradun, Nov 21 (KNN)  In a move that will boost investments and offer considerable relief to industrial units in the state, the Government of Uttarakhand has approved of a new policy for micro, small and medium enterprises (MSME) which will provide incentives, relaxation in VAT and also power subsidy.

The decision which will promote investment by locals in the sector, especially those located in remote hill areas of the state, was taken at a meeting here yesterday, according to media reports.

The policy was put together by the Department of MSME and the Industries Association of Uttarakhand (IAU) incorporating suggestions from various business chambers.

Delighted with the new policy, president of the IAU, Pankaj Gupta confirmed that 90 per cent of their suggestions have been considered.

“The government has taken a bold step with substantial concessions.  Now it is up to the people to take advantage of them,” Gupta said.

Asked how soon the policy would be implemented.   “There is a process that has to be followed.  Once the policy has been approved by the cabinet, the government has to issue notifications and this will take about 10-15 days,” he said.

As per the new policy, areas in the state have been divided into two categories.  Category A comprises backward districts particularly those located at high altitude such as Pithoragarh, Uttarakashi, Chamoli, Champawat, Rudraprayag and Bageshwar which will receive capital subsidy of 40 per cent and interest subsidy of 12 per cent.

On the other hand, category B comprises the districts Tehri, Pauri and Almora and those areas lying above 650 ft in Dehradun and Nainital districts which will receive capital subsidy of 30 per cent and interest subsidy of 10 per cent, according to the report.

Further, units lying in category A can enjoy 100 per cent relaxation in value added tax (VAT) during the first five years.  However, units in category B will only get 75 per cent relaxation.

Significantly, the new policy will also provide for power subsidy as well as transport subsidy.
In addition, the state government has assured support to the central government’s cluster development schemes and in this regard several mini tools rooms will come up.  Also in the pipeline is the development of a land bank.

With regard to the new industrial estates, developed by the State Industrial Development Corporation of Uttarakhand Limited (SIDCUL), 25 per cent of them will be reserved for MSMEs, the state has assured, while land will be provided to them at concessional rates.

Moreover, the Uttarakhand government is planning to institute awards to MSMEs for their achievements.  It will also set up an empowered committee to ensure effective implementation of the new policy.
The cabinet has also approved of a new textile policy for the state.  According to reports, a mega textile park will be developed over 90 hectares of land in Udhamsingh nagar district while two mini textile parks will come up at Munsyari and Joshimath.  (KNN/ES)

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