Uttaranchal is blessed with a rare bio-diversity, inter-alia, 175 rare species of aromatic & medicinal plants are found in the state. The state has almost all major climatic zones, making it amenable to a variety of commercial opportunities in horticulture, floriculture and agriculture. The literacy rate in the state is 72%, which is indicative of the human resources potential with a large number of top quality educational institutions, and national and state level research & training institutes and institutions of excellence. The peaceful and pollution free environment in the state is conducive for industrial development and good quality of life. Uttaranchal has rich power resources and potential with availability of assured, uninterrupted, quality power at affordable and competitive rates.
Among the fiscal incentives, the state offers I00% Central Excise exemption for 10 years on items other than those mentioned in the negative list in the Concessional Industrial Package announced by the central government.
- 100% Income Tax exemption for first 5 years and 30% for next 5 years for the Companies and 25% for others.
- Capital Investment Subsidy @15% with a maximum of Rs. 30 Lakhs. (Rs. 3 million).
- Central Transport Subsidy extended till 2007.
- Exemption from entry tax on plant & machinery for setting up industry or undertaking substantial expansion and modernization.
- Land use conversion and development charges and regime will be rationalized.
- Stamp duty concessions will be provided in respect of land in specialized commodity parks, including IT parks.
- Interest incentive @ 3% with a maximum of Rs 2 lakhs per annum per unit shall be provided to New Small Scale Industries (SSIs) and existing SSIs for modernization and substantial expansion, provided they have availed loan from state level financial institutions or banks operating in Uttaranchal and not defaulted in payment of principal or interest installments. However, for S.S.I units and units notified as Thrust Industries being set up in remote areas, the interest incentive shall be granted @ 5% with a maximum of Rs. 3 lakhs/annum. The interest incentive shall be admissible to the unit only if it remains in operation for a minimum of three years from the date of disbursement of last instalment, failing which the government will have the right to recover the entire amount of incentive availed.
- For the purpose of interest incentive, substantial expansion shall mean additional investment of not less than 25% of the undepreciated book value of plant and machinery of an industrial unit.
- For the purpose of the interest incentive, modernization of new existing Industrial units means additional investment to the extent of 25% of the undepreciated book value of plant and machinery, made in acquisition of plant and machinery and technical know-how for such modernization.
- 75% of the total expenditure subject to a maximum of Rs.2 lakhs incurred in obtaining national/internationally approved quality marks such as ISO series certificate etc., shall be reimbursed to the entrepreneurs provided that the reimbursement / grant availed for this from all sources should not exceed the total expenditure on this head.
- 50% of the expenses subject to a maximum of Rs.1 lakh incurred in installing pollution control equipment shall be reimbursed to the entrepreneurs, provided that the total reimbursement /grant availed for this from all sources should not exceed the total expenditure on this head.
- 75% of the cost subject to a maximum of Rs. 2 lakhs shall be made available to the entrepreneurs in the shape of assistance for registering their patents, provided that the total reimbursement/grant availed for this from all sources should not exceed the total expenditure on this head.
- For educated unemployed youth, financial loan assistance for projects upto Rs. 2 lakhs in case of Manufacturing/Service Industry and projects upto Rs. 1 lakh in business sector shall be available under the "PRIME MINISTER ROZGAR YOJNA" with subsidy of 15% of the project cost subject to a maximum of Rs. 15,000. Age limit has also been relaxed under this scheme from 35 years to 40 years.
- Industries generating employment opportunities shall be encouraged.
- Purchase preference and price preference will be given to state SSIs in State purchases.
- Purchase preference shall be accorded to Non-SSI units within the State vis-a-vis units outside the State.
- Matching State subsidy on approved projects of National Horticulture Board (NHB), Agricultural & Processed Food Products Export Development Authority (APEDA), National Medicinal Plant Board (NMPB) subject to a maximum of Rs. 20 Lakhs and subject to a total subsidy not exceeding over 50% of the project cost.
- (Source: State Govt website, Uttaranchal)