21 June, 2015
Industrialization plays vital role in socio-economic development of a society and has potential to break the vicious circle of underdevelopment. Besides, it also helps in increasing the quantity and quality of various manufactured goods, thereby makes a larger contribution to gross national product.
In an agrarian economy like Himachal Pradesh, industry absorbs underemployed and unemployed workers of agricultural sector. The present State Government has initiated several steps to accelerate the pace of industrialization in the State. Apart from providing time-bound clearances for setting up of new industrial units in the State, an attractive package of incentives is being provided to potential entrepreneurs in the State. This has not only helped the State in attracting investment, but also ensured ample opportunities of employment to the local youth.
The Government has established a State Level Single Window Clearance and Monitoring Authority (SWC&MA) to ensure time-bound clearances to industrial proposals. To fast track the process of according time-bound approval to industrial proposals, the Government has introduced a common application for seeking approval of setting up industries in the State The Authority through this common application form is now according approvals within a period of 45 days from the date of receipt of application form.
The State level Single Window Clearance and Monitoring Authority in its eleven meetings held during the last about two and a half years has approved 75 new proposals for setting up of industrial projects, besides approving 122 expansion proposals in the State. These combined proposals would draw investment worth Rs 10879.17 crore and would provide employment opportunity to over 20,402 people.
Many big industrial houses such as United Biotech Pvt. Ltd., Reliance, Mahavir Spinning Mills, Torrents Pharmaceuticals and Himalaya Alkalizes and Chemicals Ltd. have chosen Himachal Pradesh for setting up their units. Industrial houses such as Ranbaxy Laboratories Ltd., Su-Kam Power Systems Ltd., Procter and Gambles Ltd., Johnson and Johnson Ltd., Mankind Pharma Ltd., Havells India Ltd., Abbott Healthcare Ltd., Dabur India Ltd., etc are expanding their existing units in the State.
The Government has also constituted an Investment promotion Cell to provide escort facilities to prospective entrepreneurs and also to take up and implement infrastructural related projects in the State in a focused manner. In addition, an 'Investor Advisory Council' has been set up under the Chairmanship of Chief Minister with representatives of industries, to create a platform for deliberation of policy issues for industrial development in the State.
'Industry by Invitation' has been the motto of the State Government and it is proactively and aggressively followed by organizing special investor's meets in different parts of the country. First phase of Investor's meet was held at Mumbai, Bangaluru and Ahmedabad during the month of November last year by the HP Investment Cell in collaboration with the CII. This endeavour of the State Government has yielded good results as 104 projects worth Rs 4189.07 crore has been approved by the SWC&MA. These projects would provide employment to over 12,077 persons. These projects have been given two years time to seek mandatory statutory approvals from the line departments.
Several attractive incentives are also being provided to the potential investors. Electricity Duty for the specified Extra High Tension (EHT) category consumers has been reduced from existing 15 per cent to 13 per cent. Further, the, Electricity Duty for the existing Medium and Large Industries except EHT has been reduced from the existing rate of 13 per cent to 11 per cent. Similarly, for any existing Small Industry, electricity duty has been reduced from existing 7 per cent to 5 per cent and any new Small Industry would now be required to pay only 1 per cent electricity duty for five years. Only 2 per cent electricity duty is being charged for first five years from enterprise generating employment to 300 bonafide Himachalis. Apart from this, only 50 per cent stamp duty is being charged on sale deed or lease deed for setting up a new industry.
Three State of the Art industrial areas are being developed in Una, Kangra and Solan districts. These industrial areas would provide state of the art infrastructure facilities to the entrepreneurs. An amount of Rs 107 crore would be spend on developing industrial area at Kandrori in Kangra district and Rs. 112 crore on developing an industrial area at Pandoga in Una district.
Information & Public Relations,
Himachal Pradesh, Shimla