Special federal incentive for Himachal will pay rich dividends

02 February, 2013

A spokesman of the Himachal state government has said that the Government of India had announced a Special Package of Incentives for Himachal Pradesh and Uttranchal on 7th January, 2003. Before the grant of industrial package, there were only 196 medium and large scale and 29966 small scale industrial units in the state with combined investment of Rs. 3082.68 crore and employment to 1,58,747 persons.

As a result of this package till date 1045 new medium and large scale project, 15175 new small scale projects and 432 expansion proposals of the existing units have been approved with proposed investment of Rs. 48746.43 crore and proposed employment of 5.38 lakh persons.

Out of these projects approved form January, 2003 to 31st December, 2012, 298 projects in medium and large scale sector, 8375 projects in small scale sector and 294 expansion of existing units have come up with total investment of Rs. 13980.30 crore and employment to 1,15,586 persons. After 8673 new and 294 expansion units were actually set up with total investment of Rs. 13980.30 crore and employment to 115586 persons out of which 92543 persons are Himachalis.

The spokesperson said that the state has now been able to position itself in some niche sectors. Already Baddi-Barotiwala has emerged as the Pharma hub for North India. The state has also identified Textiles, Agro food processing, Ayurvedic formulation, precision engineering, electronic and IT based industry, BT based industry and a few more such niche sectors to be developed with appropriate forward and backward linkages so as to ensure sustained industrial development in the state.