New Delhi (Agency): In a significant move aimed at fostering industrial growth and development in Himachal Pradesh and Uttarakhand, the Indian Cabinet, under the leadership of Prime Minister Narendra Modi, has approved an additional allocation of Rs 1,164.53 crore for the industrial development scheme of 2017.
The allocated funds are intended to cover the committed liabilities under the scheme, which extends up to the financial year 2028-29. Union Minister Anurag Thakur shared this announcement with reporters, highlighting the government’s commitment to supporting industrial endeavors in these northern states.
The original financial outlay for the industrial development scheme 2017 was Rs 131.90 crore. The scheme aims to provide a conducive environment for industrial growth by offering incentives to companies investing in Himachal Pradesh and Uttarakhand. These incentives encompass various aspects, including access to credit and insurance support.
One of the key features of the scheme is the Central Capital Investment Incentive for access to credit (CCIIAC). Under this provision, eligible new and existing industrial units that substantially expand their manufacturing and service sector operations in Himachal Pradesh and Uttarakhand are entitled to receive an investment incentive of 30 percent of the investment in plant and machinery, capped at Rs 5 crore.
Additionally, these units are eligible for a full reimbursement of the insurance premium, covering both building and plant machinery, for a maximum duration of 5 years from the initiation of commercial production or operation.
It’s worth noting that the original financial outlay of the IDS, 2017 for Himachal Pradesh and Uttarakhand was a modest Rs 131.90 crore, which was disbursed during the fiscal year 2021-2022.
This decision to allocate an additional Rs 1,164.53 crore underscores the government’s commitment to promoting industrial development and investments in Himachal Pradesh and Uttarakhand. The support provided by the scheme aims to attract businesses, encourage expansion, and create a conducive environment for sustainable economic growth in these states.
The Cabinet’s approval of this substantial boost in funding demonstrates India’s dedication to fostering economic development at the regional level, aligning with the broader goal of boosting the nation’s industrial capabilities. This move is expected to have a positive impact on employment generation, economic prosperity, and the overall well-being of the people in these states, furthering India’s path toward becoming a global economic powerhouse.