The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional fund requirement of Rs 1,164.53 crore for the Industrial Development Scheme 2017 (IDS) in Himachal Pradesh and Uttarakhand.
The IDS 2017 was launched by the government in 2018 with a total financial outlay of Rs 131.90 crore. The scheme provides incentives to companies for investment in the manufacturing and service sectors in Himachal Pradesh and Uttarakhand.
The scheme required an additional fund of Rs. 1,164.53 crore to meet its committed liabilities up to 2028-29, Union Minister Anurag Thakur told reporters.
Chief Minister of Uttarakhand, Pushkar Singh Dhami, conveyed his heartfelt thanks to Prime Minister Modi for the additional funding allocated to the state through a post on the social media platform X (formerly Twitter).
This vital decision was based on a proposal put forth by the Ministry of Commerce and Industry, Department for Promotion of Industry and Internal Trade. The additional funding is set to facilitate various incentives for industrial units in these 2 states, including:
Central Capital Investment Incentive for Access to Credit (CCIIAC): Eligible new and existing industrial units in the manufacturing and service sectors, located anywhere in Himachal Pradesh and Uttarakhand, will receive a Central Capital Investment Incentive for access to credit (CCIIAC) at a rate of 30% of their investment in Plant and Machinery, with an upper limit of Rs. 5.00 crore.
Central Comprehensive Insurance Incentive (CCII): This incentive is available to all eligible new industrial units and existing industrial units on their substantial expansion located anywhere in the states of HP and Uttarakhand. The incentive is 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.
The scheme is expected to generate direct employment opportunities for about 48,607 people through 774 registered units.
