Hill Policy (English)

7/31/2019 Hill Policy (English)

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Maj.Gen. Bhuwan Chandra Khanduri, ABSM (Retd)Chief Minister, Uttarkhand

The Chief Ministers Message

After the Nainital Declaration made by the then PrimeMinister of India, Shri Atal Bihari Bajpayee for granting special industrialpackage for a special category of the States, including Uttarakhand, togive impetus for the rapid industrialization, the Government of Indiaannounced a Special Industrial Package in 2003, due to which theUttarakhand State has emerged today as a forerunner State in terms ofthe industrial investment. A revolutionary change has taken place in theindustrial scenario of Uttarakhand due to this Special IndustrialPackage.

In the last four-five years some of the leading businesshouses and group of industries have setup their industrial units here,but incidentally this industrial investment was limited up to Hardwar,Udham Singh Nagar and Dehradun districts only, the remote and hillyregions of the State remained untouched by this industrial development.This is indeed a challenging task for the State to promote industrialinvestment in the remote and hilly areas of the State and to generate

employment opportunities in these areas so that the brain drain could bechecked specially among the youths.

With this objective in mind the State Government hasannounced The Special Integrated Industrial Promotion Policy-2008. The

Policy has been framed after prolonged consultation and deliberationsheld with the confederations of the industrialists and the entrepreneurs,and I hope that the scheme will not only prove fruitful and encouragingfactor for the investors & the local entrepreneurs but also serve as amilestone towards industrial progress of the remote and hilly regions ofthe state.

(Mj.Gen. (Retd) Bhuwan Chandra Khanduri)


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The Special Integrated Industrial Promotion Policy 2008 for hilly &remote areas of Uttarakhand

Detailed Guidelines/Notifications

Notification

Industrial Development section-2No: 488/VII-II/08/08 Dehradun Dated 28 February, 2008

The Governor is pleased to order the promulgation of the SpecialIntegrated Industrial Promotion Policy 2008 for the hilly & remote areasof Uttarakhand in order to promote the industrial development and toaccelerate the pace of industrialization in the State and to provide for theemployment opportunities along with the coordinated and plannedapproach for the industrial development.Policy Objectives:

The objective of this policy is to accelerate the pace of industrial

development in the remote and backward hill regions of the State byproviding infrastructure for the development of entrepreneurship,extending infrastructure facilities and fillip to market access andfinancial assistance to the entrepreneurs intending to set up industries.This will help to remove the economic backwardness of the hill regions bygenerating the employment opportunities along with the possibilities tocheck the brain drain from these areas. In view of the unevengeographical situations, environmental and social conditions, this policyseeks to endeavor to help and promote the establishment of theindustries based on the locally available resources with the coordinatedand integrated industrial growth, to identify the industrial activities in

the areas of manufacturing, production and service sectors and to fixand prescribe the limit of the quantum of the grant in aid and otherfacilities. The industrial activities identified in the manufacturing and

service sector are broadly categorized as under,

1.The Manufacturing Industries classified under Green and OrangeCategories which are of non-polluting in nature

2.The industrial activities included in the Thrust Industries declaredby Government of India under the Special Industrial PromotionPackage for the States.

3.The industrial activities having the status of Industry declared bythe State Government such as the poultry farming and tourism

4.The following industrial activities included in the Service Sectorand other sectors industries declared under the Special PackageScheme 2007 for the North Eastern States;

(1)Service Sector- Hotel, adventurous and leisure sports including the

ropeways


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Medical and health services in the nature of Nursinghomes

Vocational training institutes such as institutes ofhotel management, catering and food craft, andentrepreneurship development training, nursing and

paramedical civil aviation related training, fashiondesigning, and industrial and skill development

training.

(2)Bio-technology Industry5. Protected Agriculture and Poly House, cold storage and like

activities6. Petrol Diesel pumping and filling, gas go-downs

2.Classification of the Remote Hilly regions

The following hill areas have been categorized for the entitlement offinancial incentives under the Integrated Industrial Package Scheme

declared for the remote hilly regions

Category- A

The remote hill and border districts of the State including the newlycreated districts comprising of the hill territories of the districtUttarkashi, Pithoragarh, Chamoli, Champavat, Rudraprayag,

Category- B

The territories of district Pauri Garhwal, Tehri, Almora and Bageshwarincluding the Development Blocks forming the hill areas in districtDehradun and Nainital except the territories comprising the Doiwalla,Sahaspur and Raipur Blocks in district Dehradun and the territoriescomprising the Haldwani and RamNagar Blocks in district Nainital.

3.Validity of the Scheme

This Scheme shall come into force on the Ist day of April 2008 and shallremain in operation till 31March 2018 until amended otherwise.

4.Industrial units covered by the Scheme and its eligibility field

The industrial units identified in the manufacturing and service sector,which came into existence after the Ist day of April 2008, when this

scheme came in operation, after obtaining necessary approval/registration from the Ministry of Commerce and Industries, Governmentof India or from the District Industries Centre of the respective district,


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shall be eligible for the facilities / concessions provided under thisPackage Scheme save otherwise the industrial unit under expansion and

modernization process.

5.Fiscal & Concessional incentives under the Special Integrated

Promotion Scheme Policy

The detailed features of the fiscal incentives and concessions providedunder the Special Integrated Promotion Scheme Policy are given asunder:

1 Land resource development promotion scheme:

The industrial enterprises in the manufacturing and productionsector shall be allotted land on priority basis after setting up therequired basic infrastructure and public utilities services such as

supply of water and electricity, roads and sewer lines, andconnecting roads and passages.

The total exemption from payment of stamp duty payable on theregistration of the sales deed or lease deed on purchase of plot by

the private entrepreneurs in the industrial estates developed by theState Government or owned by the private entrepreneurs

In case any private entrepreneur directly purchases land forindustrial purposes and the development of any industrial area, orfor setting up a mega project or for installation of plant connected

with the industrial activity in service sector, shall be entitled fortotal exemption from stamp duty .The necessary formalities

required for giving effect to any change in the utilization of landpurchased by the entrepreneur for industrial purposes shall berelaxed and made easy.

The participation of entrepreneurs in forming Cooperative societiesfor the maintenance of the industrial areas shall be encouraged. Incase the entrepreneurs in the industrial areas form their owncooperative societies to maintain the estates, the society shall beentitled for a Grant- in- aid to the tune of Rupees fifteen lakhs inlump sum, which may be five times more than the capitalinvestment made, by the members of the society and which shallbe deposited by the society in any bank as fixed deposit. And the

interest earned by the society on the fixed term deposit shall beused for the purpose of the development and maintenance of theindustrial estate.

The minimum limit of land area required for setting up industrialestates in the hill regions would be 2 acres. The guidelinesprovided by the Government of India in this regard stipulates theuse of fallow land as notified or the unirrigated land or other


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available land resource with the help of public and privateparticipation.

The founding members or the sponsors shall be sanctioned a grantto the maximum of Rupees 50 lakhs or fifty percent of theexpenditure incurred by them on the establishment of industrial

areas or setting up mega projects in the estate including the basicinfrastructure requirements such as power supply, water supply,

construction of roads, connecting lanes and drainage system.

2. The Special State Capital Investment Production Incentive: Inview of the decision announced by the Department of IndustrialDevelopment, Government of Uttarakhand vide Notification No 1644/VII/98 dated 13, June 2005 to merge the Special State CapitalInvestment Production Incentive scheme in the present scheme by which

the newly setup industries coming into existence after 1 April, 2008 shallbe entitled for the Special State Capital Investment Production Incentive

for the construction of plant building and investments made towards thepurchase of machinery and equipments, the incentive shall be given inthe following manner:

The industries making investment in the districts specified incategory-A shall be provided capital incentive at the rate of 25percent of the total investment subject to a maximum of Rupees 35lakhs.

The industries making investment in the districts specified incategory-B shall be provided capital incentive at the rate of 20percent of the total investment subject to a maximum of Rupees 25

lakhs.

3. Special Component of Interest Incentive: Pursuant to the provisioncontained in the Government order announced by the Department ofIndustrial Development, Government of Uttarakhand vide Notification No1050/I.D./Int.Incent.Comp. -7/2004-169 Industry dated 24 May 2004the Small-Scale industries applying for loan in the remote hill regions ofthe State shall be entitled for the special component of interest incentiveat the rate of 5 percent subject to the maximum of Rupees 3 lakh perunit. This scheme is valid upto 31March 2008 but the industrial unitssituated in the remote and hilly regions of the State shall continue to

avail of this facility with the following conditions:

The industries seeking loan through the funding banks /financialinstitutions situated in the districts specified in Category A maybe given incentive of simple interest upto 6 percent of the total loansanctioned subject to a ceiling of Rupees 5 lakhs per unit perannum and those specified in Category B may be entitled for


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interest incentive at the rate of 5 percent subject to a ceiling of Rs3 lakh per unit per annum.

All industrial enterprises/identified industries in themanufacturing /production and service sector shall be entitled forthe interest incentive under the scheme.

4. Power concessions to new industrial units: All new industrial units engaged in manufacturing and production

of goods including the industrial enterprises engaged in the

activities in service sector shall be entitled for 100 percent rebateor exemption on electric bills for a period of ten years.

The industrial activities where consumption of power iscomparatively higher such as hotels/motels, resorts, guest houses,steel rolling mills, electric furnaces or the like activities, the

entitlement for power concession will not be available. The industries based on the fruit preservation, herbal and

medicinal plantsand domestic produce shall be given due preference and priorities

in this scheme.The local producers and entrepreneurs shall be given due

encouragement andNon- pollutant industries shall be promoted.

5. Repayment of Value added Tax to the manufacturing andproduction units on the sale of the self-produced goods:Repayment of the Value added Tax to the entrepreneurs engaged in theindustrial activities in the districts categorized under Category A shall begiven effect in the Scheme to a tune of 90 percent of the VAT payable by

such units and 75 percent to the industries situated in the districtsclassified under category B.6. Special State Subsidy scheme on transport: Pursuant to theCentral Transport Subsidy Scheme 1972 the industrial units establishedin the hill areas of the State shall be given special subsidy upto 75percent towards transportation charges for five years under the centraltransport subsidy scheme for the transportation of raw material from thenearest Railway head to the worksite of the unit and transportation of

finished goods from the factory to the nearest Railway head. In order topromote the industrial units based on the local resources in the hillareas a special subsidy shall be granted for internal transportation of

raw material, which shall be calculated at the rate of 5 percent of thetotal Annual turnovers on sales of the goods for the purpose of

reimbursement of the cost incurred on transportation in the areasspecified under category A and 3 percent to the industries specified inthe areas under category B. The value of annual turn over on the sales ofgoods in a particular unit shall be determined and verified from theAnnual return filed by the unit in the Trade Tax Department of the State

Government.


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7. Fiscal incentive for the establishment of mega projects: Pursuantto the Industrial Policy 2003 announced by the State Government, the

industrial units engaged in non pollutant manufacturing process withthe capital investment target of more than the 5o crore Rupees and theminimum capital investment of not be less than 5 crores Rupees at the

initial stage have been classified as mega projects for the purpose ofentitlement of fiscal assistance. Such mega projects shall be entitled for

the fiscal and non-fiscal assistance and exemptions under the Scheme.

Special attention shall be focused on the training ofentrepreneurship for the local population for the growth anddevelopment of entrepreneurship and the training of the technicalmanpower resource which will pave way for the individual initiativeto set up industrial venture on their own. In securing thecooperation for organizing these training programmes propercoordination and interaction shall be established with the ITIs,

polytechnique institutes, engineering colleges and universities ofthe State to seek their guidance and help in this regard. If anysurvey or study is required the same shall be done with fundsavailable under the scheme.

Participation of private and public institutions shall be encouragedto establish an institute for the Development of entrepreneurshipskill and to impart training for skill development. If any private

institution comes forward to create basic infrastructure for themanagement of skill development and training with adequatefacilities of tools and equipments required for such training, shallbe entitled for financial assistance and facilities under the

Integrated Financial Incentive Scheme which provides for thepromotion of entrepreneurship and skill development training onthe basis of Bench marking system accredited with the prescribednorms of skill management training. Such industrial units and nonGovernment organizations shall also be considered for providingfinancial assistance to organize skill development programs who

will take initiatives to provide employment to the trained personnelin their respective industrial undertakings or help in gaining thememployment in other organizations. Special efforts shall be made toseek help from the specialized agencies/technical institutions topromote and develop industries based on the local resources in the

Uttarakhand State for which special studies; research or surveyesshall be sponsored.

9. Promoting industrial enterprises based on local resources: With a view to establish a support system with common facilities in

the selected areas of the hill regions, an industrial workshop shallbe established to operate as a Common Facility Centre. In order torun this Facility centre efficiently and smoothly top priority shallbe given to the proprietors, firms, companies and organizations.


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These centers shall be supported with financial assistance to carryout research and development activities on locally available raw

materials such as pinus needles and fur leaves, sisal (agave), andother fibrous fruits and vegetables, herbs and medicinal plants byrefining, processing and storaging of the raw material and to help

preservation of the produce like fruits, vegetables and herbs etc bybottling. The marketing facilities shall also be provided to the units

established in region. The cost incurred by these centers on tapingthe natural resource goods by scientific methods and processingwork done with the technical help/advise of the Forest ResearchInstitute, CSIR, Engineering colleges and other technical institutesshall be reimbursed to them as consultancy-subsidy to the extentof 75 percent of the total cost on this expenditure. Besides theabove functions the Common facility Centers will offer forwardlinkage service to the entrepreneurs and serve as the Marketinghelp institutions.

The financial incentives contained in the Industrial Policy 2003stipulates the provision for financial assistance to the industrialunits, for the certification of the quality and standardization oftheir goods by the recognized national /International institutionsfor quality control testing, and trade marking which shall beadmissible to them at the rate of 75 percent of the cost incurred by

them subject to the maximum limit of Rupees 2 lakhs only.Presently this facility is being provided to them only for thecertification and patenting by ISO. Besides the above benefitsbeing continued the industrial units shall be entitled for an

additional subsidy grant by way of repayment of the 75 percent ofthe cost incurred by them subject to the maximum of Rupees 1lakh for the certification of the quality and standardization of thegoods produced by them to be certified by the nationally/internationally recognized institutions on ISI marking, Qualitymarking, BIS, FPO licensing, trade marking and registration of

copy right10. Marketing promotion incentive: In order to provide support system to promote marketing of the

goods produced by the entrepreneurs, they shall be facilitated toparticipate in the trade fairs and exhibitions organized at the

national, state and district level by allotting stalls to them at free orconcessional rates.

The craftsmen from the hill regions of the State shall be providedsupport by repayment of travel fare and financial assistance for thetransportation of their goods to participate in the trade fairs andexhibitions organized at the national, state and district level topromote marketing of the goods prepared by them.


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Government of UttarakhandIndustrial Development section-2

No: 1961/VII-II/123-Industry / 08 Dated 15 October, 2008Notification

The Governor is pleased to give assent to frame rules and guidelines for

the implementation of the Special Integrated Industrial Policy 2008announced by the State Government vide notification No 488/VII-

II/08/08 Dehradun Dated 28 February, 2008 issued by the Departmentof Industrial Development, Uttarakhand for giving effect to the variousincentive schemes and concessions contained in the Industrial Policyenunciated for the hilly regions and districts of the State in the followingmanner;

Short title, extent and commencement:1.These Rules/Guide lines may be called the Special IntegratedIndustrial Incentive Rules-20082. These Rules shall come into force on Ist day of April 2008, as

announced in the notification dated 29 February 2008, and remain inoperation till 31,March 2018Classification of the hilly regions: The remote and hilly regions of theState are classified as under for the purposes of eligibility for the subsidyincentives/exemptions or concessions under the schemes contained inPara 2 of the Industrial Policy Paper notified by the Department ofIndustrial Development, Government of Uttarakhand vide its notification

no 488/VII-II-08/08 dated 29February 2008: -(i) Category A: Districts of Pithoragargh,

Uttarkashi, Chamoli, Rudraprayag andChampawat.

(ii) Category-B: -All the territories under the Districtsof Pauri Garhwal, Tehri Garhwal, Almora,Bageshwar, Nainital (excluding the areas inHaldwani and Ram Nagar Blocks) and Dehradundistrict (excluding the areas falling in Doiwalla,VikasNagar, Raipur and Shaspur Blocks)

including all other Blocks in the said districtsforming the hilly regions.

Definitions:1 Micro, Small and Medium enterprises:

The Micro, Small and Medium enterprise means the industrial

enterprises, which have been detailed in Chapter 3 and defined underSection 7 of the Micro, Small and Medium Enterprises Development Act,2006 and includes the enterprises which have shown its intention toestablish an enterprise or have already established the enterprise afterobtaining the acknowledgement of approval of theEntrepreneursMmorandum Part I & Part 2 from the District IndustriesCenter.(i) Manufacturing / Production enterprise: -


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The enterprise, which deals in manufacturing and production of goodsconnected with any industry specified in the First Schedule of the

Industrial (Development and Regulation) Act 1951,such as(a) The Micro enterprise means, which has made capital investment

of less than Rupees 25 lakhs on plant and machinery

(b) The Small Scale enterprise means, which has made capitalinvestment of more than Rupees 25 lakhs but not exceedingRupees 5 crores on Plant and machinery

(c) The Medium scale enterprise means, which has made capitalinvestment of more than 5 crore Rupees but not exceedingRupees 10 crores on Plant and machinery

(ii) Service Sector enterprises; means such enterprises which hasbeen defined under the Micro, Small and Medium EnterprisesDevelopment Act, 2006 or which has been notified by theGovernment of India from time to time, but in case of theenterprises which are engaged in providing services on the

following scale as(a)The micro service enterprises with capital investment of not

more than Rupees 10 lakhs on equipments and machinery

(b)The small scale service enterprise with capital investment ofmore than Rupees 10 lakhs but not exceeding Rupees twocrore on equipments and machinery

(c)The medium ranged service enterprise with capitalinvestment of more than rupees 2 crores but not exceedingrupees 5 crores on equipment and machinery

2 Large industrial units; means such large industrial unit with a larger

capital investment than the investment scale determined by the Micro,Small and Medium Enterprises Development Act, 2006 under chapter 3and Section 7 of the Act for the Micro, Small and Medium Enterprisesand having obtained necessary approval / acknowledgement of theIndustrial Entrepreneurs Memorandum (IEM) / Secretariat for IndustrialAssistance (SIA) / Industrial License / Letter of Intent etc (whichever the

case may be) from the Ministry of Commerce and Industry, Governmentof India or the District Industries Centre of the concerned district.

3 Mega Project: means an industrial project with investment of morethan 5 crore Rupees made on its fixed assets after 1April 2008 and

having obtained necessary approval/acknowledgement of the IndustrialEntrepreneurs Memorandum (IEM) / Secretariat for IndustrialAssistance (SIA) / Industrial License / Letter of Intent etc (whichever thecase may be) from the Ministry of Commerce and Industry, Governmentof India or the District Industries Centre of the concerned district.


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The manufacturing/producing enterprises &The identified industrial activities of Service Sector:

In pursuance of the directions contained in para13 of the notification

dated 29 February 2008 the manufacturing / producing enterprises andthe identified activities of Service Sector industries are detailed in the

following Para I as under:1. The Manufacturing Industries classified under Green and Orange

Categories which are non-polluting in nature(i) The identified industrial units / enterprises categorized as

non-polluting in nature numbering 220 green categoryindustrial activities enumerated in Schedule-1 of the Circular/ Government order no 2164/37/ARN/97 dated 3-6-97 issuedby the Uttar Pradesh Pollution Control Board, Luck now

(ii) Excepting the following restrictive category of themanufacturing industrial activities categorized as the Redcategory of industries mentioned in the DoonValleyNotification, 1989 all other enterprises have been included inthe Green category non-polluting industries

1 Aluminum smelter2 Distillery including fermentation industry3 Dyes and Dye-intermediates4 Fertilizers5 Iron and steel (involving processing from

ore/scrap/I integrated steel plants)6 Oil refinery (mineral oil or petro refineries)7 Pesticides (technical)(excluding formulation)8 Petro-chemicals (manufacture of and not

merely use of as raw material)9 Paper, straw Board, Pulp Card Board (Paper

manufacturing with pulping)10 Tanneries11 Thermal power Plants12 Zinc smelter13 Ceramic/Refractors14 Chemical, petrochemical and electrochemical

including manufacture of acids such as

sulphuric acid, nitric acid, phosphoric acid etc15 Chlorates, fluorine, bromine, iodine and their

compounds

16 Chlorine Florine bromine, iodine and theircompounds

17 Coke making, coal liquefaction, coaltardistillation or fuel gas making

18 Explosives including detonators fuses etc


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19 Fire crackers20 Industrial carbon including electrodes and

graphite blocks, activated carbon, carbonblack etc

21 Industry or process involving electroplatingoperations

22 Lead reprocessing and manufacturingincluding lead smelting

23 Mining and ore beneficiation24 Phosphate rock processing plants25 Phosphorous and its compounds26 Potable alcohol (IMFL) by blending or

distillation of alcohol, distilleries andbreweries

27 Slaughter houses and meat processing units28 Steel and steel products including coke plants

involving use of any of the equipments such asblast furnaces, or arc furnaces etc or any ofthe operationsOr processes such as heat treatment, acidpickling, rolling and galvanizing etc

29 Stone crushers30 Synthetic detergent and soap31 Tobacco products including cigarettes and

tobacco processing

32 Synthetic rubber33 Chemicals34 Glass35 Galvanizing, heat treatment, induction heating

running on continuous basis36 Aluminum refining and manufacturing37 Sulphuric acid with contact process38 Vanaspati involving hydrogenation process

(not applicable to refined oils)39 Chemical fertilizers40 Drug manufacturing industries having

fermentation process and having contractedload more than 1MVA

2.Industries of Thrust Sector notified under the Special IncentivePackage:The Ministry of Commerce and Industry (Department of Industrial Policy& Promotion) have identified the industrial activities under Thrust Sectormentioned therein its office memorandum No1 (10)/2001-ANER dated7January, 2003


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3.The industrial activities having the status of industry declaredby the State Government:

(i) The occupations under the floriculture, declared by theGovernment of Uttarakhand, Department of IndustrialDevelopment vide notification No 812/ID/2003-dated

29October 2003(ii) The occupations of commercial poultry farming with the

centralized system of prescribed breeding / annual capacity runwith the help of electricity operated broiler farming /laying/eggshatching declared by the Government of UttarakhandDepartment of Industrial Development vide notification No926/ID/04-05 dated 25 November 2004

(iii) The tourist activities having the status of Industry declared bythe Government of Uttarakhand, Department of Tourism videits notification No 483/VI/2004-333(Tourism)/2003 dated17july 2004

(iv) The industrial activities which are eligible for the schemes runby the Government of India, Ministry of Food ProcessingIndustry, National Horticulture Board (NHB) / NationalMedicinal Plants Board (NMPB) / The Agricultural & ProcessedFood Products Export Development Authority (APEDA),specified by the Principal Secretary & Commissioner,Department of Forest and Village Development, Government of

Uttarakhand in their Notification No 406/XVI/04/298/2002dated 17may, 2002

4.The industrial activities of Service Sector included in the

Special Industrial Package-2007 announced for the North EasternStates(i) The activities connected with event tourism including the

hotels, spa, entertainment & amusement park, ropeways asdefined in the notification No 1(13)/2003-SPS dated14September, 2004 and corrigendum dated 16 September 2004

issued by the Ministry of Commerce and Industry (Departmentof Industrial Policy & Promotion), Government of India.

(ii) The activities connected with event tourism as specified by theDepartment of Tourism, Government of Uttrakhand

Explanation:

(1) Commercial rental accommodation provided in hotels withMinimum-lodging capacity of 8 rooms with necessaryfacilities

(2) The location of the hotel building with proper access andclean environment

(3) The size and construction of the hotel rooms are inaccordance with Local regulations and standards


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(4) At least 50 percent lodging accommodation in the hotelrooms should be fully furnished with attached

bathrooms, toilet and closets.(5) The remaining 50 percent lodging accommodation should

also be furnished with proper bath rooms and toilet facility

(6) Adequate supply of heated and cold water in hotel(7) Hotel should provide telephone facility, reception room andthe furniture should be clean and comfortable furniture

(8) The restaurant in the hotel is clean, airy and fullyfurnished with modern gadgets of comfort and properarrangements of maintaining hygienic atmosphere

(9) The activities of adventure and leisure sports approved bythe Ministry Sports and Tourism, Government of India andthe State Government

(10) Cable car and ropeways with trolley carrier(11)The approved activities under the relevant schemes must

follow the guidelines to qualify for the electricity supplybackup

(iii) Nursing Homes with facilities of medical treatment &health:The hospitals & Nursing Homes with standard facilities ofmedical treatment and health approved by the Department ofMedical Health & Family welfare Uttarakhand, Government.

(1)The private hospitals and Nursing homes located within themunicipal and town area limits with indoor capacity of 10bed fully equipped with modern clinical facilities such as, X-ray machine, Ultrasound, clinical pathology lab, vaccination

lab, safe obstetrical facility, operation theatre, medical storeand emergency facilities supported by at least one surgeon/physician in the category of specialist and assisted by atleast two general medical officers (holding the qualification ofMD/MS/M.BB.S/BAMS or with the degrees recognized bythe Medical Council ) and assisted by trained Male / female

paramedical staff.(2)The private hospitals and Nursing homes located beyond 20

kilometers distance from the municipal and town area limitswith indoor capacity 5 beds, equipped with necessarymodern clinical machines & labs such as, safe obstetrical

facility, vaccination lab, ECG, medical store with life savingdrugs and emergency facilities supported by at least oneMBBS degree holder physician, one trained nurse and twoparamedical staff.

(3)The medical centers established with Ayurvedic,Homeopathic and Panchkarma line of treatment will also becovered under the category of Nursing homes but thesecenters will follow the standard practice of treatment and


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guidelines and shall have to obtain license/registration fromAyurvedic, Unani and Homeopathic the Medical Council.

(4)It will be mandatory to follow all standard norms andguidelines prescribed by the Ministry of Medical Health/Medical Council in setting up Nursing homes.

(5)It will be compulsory for the Nursing Homes to obtain license/registration /approval from the Central / State Council ofMedical health and Research under the relevant laws andRules in operation.

(iv) Vocational Training Institutes:(1)The training activities mentioned under the vocational

training such as the hotel management, catering & foodcraft, entrepreneurship development, nursing andparamedical training or training connected with civilaviation, fashion designing mentioned in para-1 (V) of theNotification No- 10(3)/007-DVA-II/NER dated 21 September

2007 issued by the Ministry of Commerce and Industry(Industrial Policy & Promotion), Government of India

(2)It will be compulsory for all the Vocational training institutesto obtain registration / affiliation from the All India Councilof Technical Education, National Institute of TechnicalEducation or from the State Council of Technical andVocational Education and follow the standard level of

education in accordance with the recognized institutions.(3)It will obligatory for setting up Para Medical Diploma Course

Training Centers to obtain approval from the AdministrativeFaculty of the Uttarkhand State Medical Council as required

under the Rules framed by the Council.(V) Biotechnology: All activities run under the biotechnology

process of production, which is carried on with the help ofimplements, equipments, and machines including theproduction connected with the biotechnology processing in thelaboratories.

5.Protected Agriculture and Horticulture, Cold storage:(1)All activities run by the National Horticulture Board,

National Board of Medicinal Plants, and the Agriculture &Processed Food Products Export Development Authority.

(2)All protected agricultural and horticultural activities notifiedby the Department of Agriculture and Horticulture,Government of Uttartakhand

(3)The activities such as preservation of agro products, egtissue culturing, production of mushrooms, live trees,plants, bulbs, roots, cut flower, ornamental and hydroponicsetc carried on by the classified micro, small and mediumranged industrial units through their Poly houses/glasshouses or sheds built by them.


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(4)Ware houses and cold storages equipped with specialfreezing system

6 Petrol- diesel Pumping stations, gas go- downs:(i) The Petrol & diesel Pumping stations and Gas go-

downs situated in the hill regions classified underCategory B which are located beyond the

municipal / town area limits where such facilitiesare already available from earlier times, but in thedistricts classified under category A this limit willbe 10 kilometers only from the municipal / townarea limits.

(ii) It will be mandatory to obtain license from thecompetent Authority under Government of India /State Government for setting up the Petrol &diesel Pumping stations and Gas go downs.

The existing units under the Scheme and their eligibility field:

1. All the manufacturing / production units andthe enterprises identified under the servicesector activities, which has been specified underPara- 1 of the Notification dated 29 February,

2008, and detailed in these Rules shall beeligible for subsidy /concessions or otherincentives under the Special IntegratedIndustrial Incentive Scheme, whether they are in

private, public or joint sector or established inthe cooperative sector for which they obtainedthe required license /approval / registrationfrom the Ministry of Commerce & Industry,Government of India or from the DistrictIndustry Center of the concerned district before

setting up their units.(i) All the micro, small and medium range

industrial units defined under the Micro,Small and Medium Enterprises DevelopmentAct, 2006, who have obtained the

acknowledgement of approval of theEntrepreneurs Memorandum Part I (EM)from the District Industries Center of theconcerned district for setting up theindustrial unit

(ii) The large industrial enterprises who haveobtained the acknowledgement of approval ofthe EntrepenuersMemorandum /the Letter of


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Intent / License / ISI registration from theMinistry of Commerce & Industry (Secretariat

for Industrial Assistance) Government ofIndia or from the concerned Ministry forsetting up the industrial unit

(iii) These incentives and facilities shall beavailable to the new industrial units, unlessanything otherwise is provided in the relevantSchemes.

Definition of the new industrial enterprises:1.The new industrial enterprise means such industrial enterprise,which came into existence after 1 April 2008. For the purposes ofdetermining the commencement date of any newly setup unit, any ofthe following measures, whichever happens earlier, shall be taken intoconsideration,

(i) The Completion date of the construction of officebuilding(ii) The date of securing power connection for starting

production / business(iii) The date of the first purchase of raw material or

sale of finished goods(iv) The date of placing first confirmed order to the

supplier for supplying the required equipment andmachinery to the enterprise

(v) The date of sanctioning or releasing the firstinstallment of loan to the enterprise by any

financial institution or funding BankExplanation:

(1)The financial institution means any nationalizedcommercial Bank, or approved financialinstitution of the State Government, I.F.CI Bank,

ICICI Bank, The Industrial Development Bank ofIndia (IDBI), The Small Industries DevelopmentBank of India (SIDBI), and National Bank forAgricultural and Rural Development (NABARD),The Regional Rural Bank, The State Cooperative

Bank or the funding financial institutions notifiedby the Government of India / State Government

(2)The date of filing Entrepreneurs MemorandumPart II under the provisions of the Micro, Smalland Medium Enterprises Development Act, 2006by the concerned entrepreneur with the respectiveDistrict Industries Center of the district.


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Enterprises based on local resources:

1 The enterprise based on localresources means such industrialenterprise, which uses some of the

major ingredients of the rawmaterial required for the

manufacturing of its product that isavailable in the State and obtains 30percent supply of its totalrequirement of raw material in ayear from the State.

2 The industries initially identified asdependent on the locally availableresources, mentioned in thisnotification, are mainly the

enterprises connected with theindustrial activities of theprocessing and refining,preservation and storage of fruits,vegetables, herbal roots andmedicinal plants, industries basedon sisal, pinus leaves or needles or

other fiber based industries,manufacturing and production ofwoolen, silk and angora garments,jam, jelly, pickle, marmalade, juice,

honey, mushroom, floriculture, biofood products, mineral water, milkdairy, manufacturing of Ayurvedicmedicines and other traditionalcrafts. A high power Committeeconstituted in the chairmanship of

the Chief Secretary of the State hasbeen authorized to decide onmatters relating to such industriesafter due consideration anddeliberations.

Date of Commencement of production or business:The Date of Commencement of production or business shall meansuch date when a newly setup unit of manufacturing or any servicesector unit formally starts its manufacturing or business which maybe verified by the Director of Industries or the General Manager of theDistrict Industries Center of the concerned district.


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Fixed Capital investment:

The Capital investment on fixed assets means the investment madeon the land, building, installation of plant & machinery, purchase ofinstruments, equipments and machines, which may be computed in

the following manner. For the purposes of computation of CapitalInvestment Subsidy admissible under this Scheme, the capital

investment made towards the construction of workshop building orshade, and expenditure made on the installation of plant & machineryand purchase of any equipment shall be taken into account. Theinvestment made on acquiring land for the purpose of setting upindustry shall not be included in the Fixed Capital investment for thepurpose of admissibility of Equipment Subsidy.

1 Land: - In addition to the actual expenditure incurred on thepurchase of land required for the industry the expenditure made on

the development of land, if any, shall be included. The minimum leaseperiod of a land acquired from any individual or institution forindustrial purposes shall be for 15 years but there will be nominimum limit of the lease period if the land is acquired from anyGovernment institution. The expenditure made on execution of thelease shall not be included in the fixed capital investment. It will benecessary to get registered the instrument of the lease deed or sales

deed.2.Building:The actual expenditure made on the purchase or construction of theworkshop building shall be deemed the actual cost of the building.

The residential houses and the office buildings shall not be treatedunder the title of Building. Where the investment has been made onthe installation of machines and equipments in a rented privatebuilding; it will be necessary to get the rent agreement registered atleast for 15 years for the purposes of entitlement of the Rent Subsidyunder the scheme. There will be no limit of the tenancy period where

a building has been acquired from a Government institution.

3 MachineryIn calculating the cost of the machines, equipments and instruments,the cost of such items received by the workshop of the industrial unit

at the relevant time of calculation, shall be taken into account. Thetransportation charges incurred on plant and machinery or theexpenses borne on the damage or payment of insurance premium andpurchase of any accessory items such as tools, zigs, dyes, mould etcwhich may be considered necessary for the production activity, shallbe included in the cost value of the commodity but the investmentmade on the working capital such purchase of raw material,consumable stored items, etc shall not be included in the cost of


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equipment and machinery. No grant shall be given on miscellaneousassets such as office tools and equipments, line charger, transformer,

and generator set etc.

Definition of Industrial Estate:

The industrial estate means any developed or specified area, which

may be notified for the purpose of industrial estate or industrial areaand includes:

(A) The Government industrial Estate meanssuch industrial estate, which has beendeveloped entirely, either by the StateGovernment or by any State Governmentundertaking, which may be, declared assuch.

(B)The private industrial estate means suchindustrial estate which has been ownedand established by the privateentrepreneurs in accordance with theindustrial policy of the State Governmentor which has been declared as suchestate.

2. The development of infrastructure facilities means the facilities,which include the development of land, and such other facilities as

power supply, water supply, roads, connecting roads and drainagesystem provided in the industrial area.

Approval of the Schemes and procedure for the grant of subsidy:

1 Keeping in view the industrial, socio-economic, cultural and

environmental conditions, in the remote hill areas and mountainousregions of the State and the schemes and projects sanctioned by theState Government for accelerating the pace of industrial development,the Department of Industrial Development, Government ofUttarakhand vide its Office Memorandum No 4544/seven-2/98-

Industry/2007 dated 27 September, 2007 has constituted a highpower committee in the chairmanship of the Chief Secretary ofUttarakhand Government to monitor the progress of the schemes andprojects from time to time and to suggest any amendment, additionsrequired to be made in the schemes, or adding new facilities andmeasures to be included in the schemes and to review theimplementation of the schemes. This Committee shall be responsiblefor carrying out the functions contained in the Government order.


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2 A State level Committee headed by the Principal Secretary /

Secretary, Department of Industrial Development, Government ofUttarakhand may be constituted in the following manner to grantfacilities and concessions provided under the Special Integrated

Incentive Schemes

(i) The Principal Secretary/Secretary Department ofIndustrial Development, Government ofUttarakhandChairman

(ii) Additional Secretary, Government of Uttarakhand. Member

(iii) Additional Secretary Tourism/PWD/Agriculture Industry/Energy/Forest & Environment/Medical Health/Technical Education/Sports&Games/Food&Supplies/

Government of Uttarakhand.Member

(iv) Convener, State level BankersAssociation..Member

(v) State level officer of Banks/ FinancialInstitutionsMember

(vi) Additional Director, Industries, Uttarakhand.Member Secretary

This committee shall be empowered to sanction subsidy and financialassistance above the value of Rupees 5.00 lakhs.

2. A Sub- Committee to the District Udyog Mitra headed by theDistrict Magistrate, may be constituted in the following manner togrant facilities and concessions under the Special IntegratedIncentive schemes: -

I. District Magistrate ChairmanII. Chief Development Officer of the District Member

III. Manager, District Lead Bank MemberIV. Senior Treasury/Treasury Officer MemberV. District Coordinator of the Concerned

Bank /Financial Institutions Member

VI. Executive Engineer, PWD MemberVII. District Tourism/Agriculture/Horticulture Officer Member

VIII. Chief Medical Officer MemberIX. General Manager, District Industries Center Member

Secretary

This committee shall be empowered to sanction the claims of subsidyand financial assistance to the eligible units up to Rupees 5 lakhs.


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The Chairman of the Sub-Committee, may, as he may deem itnecessary, to invite the District level officers of departments /

institutions to participate in the meeting.

The limit of Subsidy grant:

1 The bonafide and permanent residents of the districts classifiedunder category B shall be entitled for the grant of subsidy /concessions on setting up new enterprises in their districtsparallel to the limit /quantum of the subsidy and concessionswhich are available to the entrepreneurs in the category Adistricts.

2 The benefits under the State Capital Investment Subsidy/Incentive Schemes shall be provided in such manner that thecapital subsidy which is admissible on the investments madefrom all sources shall not exceed 6o percent of the fixed capital

investment subject to a maximum of Rupees 50 lakhs in anyevent.

3 The enterprises which has been set up under the SpecialIntegrated Incentive Policy-2008 and whose products andactivities are included in the industrial activities of the thrustsector notified by the Ministry of Commerce and Industry(Department of Industrial Policy &Promotion), Government of

India in Annexure-2 of its Office Memorandum No1 (10)/2001-NER dated 7, January, 2003 or which have been established onthe land of industrial estates / areas notified by theGovernment of India, shall be eligible for the financial

assistance and incentive facilities declared by the stateGovernment in addition to the benefits under the SpecialPackage Scheme on the condition of their fulfilling the eligibilitycriteria for the grant of exemption in Central excise duty,Income Tax rebate and Central Capital Investment onEquipment Assistance .

Power to amend, relax or repeal any or all provisions ofthe Rules:

Notwithstanding anything contained in any of the provisions of these

Rules, theState Government may at any time:(i) Make any amendment to these Rules, or repeal them;

(ii) Make any relaxation in applying the provisions of these Rules onmerits of eachCase, as the State Government may consider necessary and appropriate;


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(iii) Impose any condition in addition to the provision of these Rules or ifthe State Government may consider necessary and appropriate to restrict

the benefits after due consideration on merits of eachCase,(iv) Separate guidelines may also be issued regarding the benefits /

assistance provided under the Special integrated Industrial PromotionPolicy 2008

Miscellaneous:1. In case of any matter arising out of the interpretation for the

implementation of these Rules, the matter will be referred to theDirector of Industries, Uttarakhand, whose decision shall be finaland binding on all.

2. In case any dispute arising out of the interpretation of these Rules,the same shall be referred to the Government and its decision willbe final and binding on all.

3.The General Manager, of the concerned District Industries Centers,shall maintain all the records and documents related to the Grants/ financial assistance under the schemes.

4. Separate guidelines may also be issued in respect of the variousfacilities and assistance provided under the Special IntegratedIndustrial Policy 2008.

P.C.SharmaPrincipal secretary

Endorsement No: (1)/VII-II/150-Industry/2008 even datedCopy to the following for information and necessary action: -1. Secretary to the Governor, Government of Uttarakhand

2. Principal Secretary to the Chief Minister, Uttarakhand Government3. PS to Chief Secretary, Uttarakhand Government4. PS to Additional Chief Secretary, Uttarakhand Government5. All Principal Secretaries/Secretaries, Uttarakhand Government6. Commissioner Garhwal Division/Kumaon Division, Uttarakhand7. Accountant General, Uttarakhand

8. Director of Industries, Directorate of Industries Uttarakhand9. All District Magistrates, Uttarakhand10. Managing Director, SIDCUL, Dehradun11. Senior Treasury Officer, Uttarakhand, Dehradun12. All General Managers District Industries Centers, Dehradun

13. Director, N.I.C.Secretariat Premises, Uttarakhand Dehradun14. Joint Director, Government Printing Press, and Roorkee for favor of

publication in the Ordinary Gazette and sending 500 copies of thesame to the Government.

15. Guard file.By order

P.C.SharmaPrincipal Secretary


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Government of UttarakhandIndustrial Development Section-2

No: 2373 / Seven-II /123-Industry / 08 Dated 15 October, 2008Notification

In pursuance of the Special Integrated Industrial Promotion Policy2008 announced by the Government vide Notification No 488-/Seven-

II/123-Industry/08 dated 29 February, which came into operation on1April 2008, the Governor is pleased to give assent to frame the Rulesregarding the following schemes as per the details given hereunder forthe implementation of incentives and benefits specified in Para-5 ofthe Industrial Policy framed for the hill regions/districts.

1 Exemptions from Value Added Tax on sale of self produced itemsby Newly set up Manufacturing and production industries.

2 Incentive Scheme for the New Industrial Enterprises forReimbursement of Electricity Bill Rules 2008

3 Scheme for the Industrial Estate Infrastructure FacilityDevelopment Fund Rules 2008

4 The Industrial Estate Infrastructure Facility DevelopmentPromotion State Assistance Rules 2008

5 The Special State Capital Investment Assistance Scheme Rules2008

6 Special Interest Subsidy Incentive Scheme Rules, 2008

7 Special Transport Subsidy State Assistance Scheme Rules, 20088 The Scheme of Financial Assistance for the Promotion of

National/International Certification of Quality & StandardizationRules 2008 (Certification by ISO/ISI/BIS/Patenting/Quality

Marking/Trade Marking/Copy right/FPO etc.)

Enclosed: as aboveP.C.Sharma

Principal SecretaryEndorsement No: No: 2373 / Seven-II /123-Industry / 08even dated

Copy to the following for information and necessary action:-

1. Secretary to the Governor, Government of Uttarakhand

2. Principal Secretary to the Chief Minister, Uttarakhand Government

3. PS to Chief Secretary, Uttarakhand Government4. PS to Additional Chief Secretary, Uttarakhand Government

5. All Principal Secretaries/Secretaries, Uttarakhand Government

6. Commissioner Garhwal Division/Kumaon Division, Uttarakhand

7. Accountant General, Uttarakhand

8. Director of Industries, Directorate of Industries Uttarakhand


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9. All District Magistrates, Uttarakhand

10. Managing Director, SIDCUL, Dehradun

11. Senior Treasury Officer, Uttarakhand, Dehradun

12. All General Managers District Industries Centers, Dehradun

13. Director, N.I.C.Secretariat Premises, Uttarakhand Dehradun

14. Joint Director, Government Printing Press, and Roorkee for favour

of publication in the Ordinary Gazette and sending 500 copies of

the same to the Government.

15. Guard file.

By order



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Exemptions from Value Added Tax (VAT) on the sale of self

produced items by the newly set up Manufacturing andproduction industries.

Industrial development Section-2 Government of UttarakhandAs approved vide Notification No-488-I.D./Seven-2-08/2008 dated 29-2-2008

1.Short Title: - These Rules may be called The Reimbursement ofValue Added Tax (VAT) on sale of self -produced items by newly set upManufacturing and Production Industries Rules, 20082.Objective: The objective of this Scheme is to provide support to themanufacturing units to be setup in the hill regions in maintainingtheir competitiveness in the market by reducing the production costso that the industrial units in the hill regions may helped to sell thegoods produced by them.

3.Validity of the Scheme:This scheme shall come into operation on1 April 2008 and remain in operation till 31 March 2018 unlessotherwise provided by an order in this regard.

4.Definitions:(A)Value Added Tax (VAT) means the value added tax as defined in

the Uttarakhand State Value Added Taxation Act-2005 (Act No 27of 2005) which was promulgated by the Legislative and

Parliamentary Affairs Department, Government ofUttarakhand vide their Notification- Miscellaneous No15/Legislative&Parliamentary Affairs/2005 dated 11November,2005.

(B)Manufacturing, Production and Service enterprise:(1) The newly identified manufacturing and production

industries means such industrial activities which have beendefined in Para 1 and 2 of the Special Integrated IndustrialIncentive Rules 2008 in accordance with the guidelinescontained in Para 13 of the notification issued by the

Department of Industrial Development, Government ofUttarakhand vide their Notification Miscellaneous No488/I.D./VII-II-08/2008 dated 29February, 2008.

(2) The Micro, small and medium enterprise means suchenterprises which have been defined as such in the Micro,

Small and Medium Enterprise Development Rules, 2006which has been setup by the entrepreneur after obtainingacknowledgement of approval of the Entrepreneursmemorandum Part1 and 2 (EM Part-I&II) from the GeneralManager, District Industries Center of the concernedDistrict

(3) The large manufacturing enterprise means such enterprisewhich has a fixed capital investment higher than the micro


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small and medium enterprises as provided under Section 7of Chapter 3 in the Micro, Small and Medium enterprises

Development Act, 2006 and which has been setup by theentrepreneur after obtaining acknowledgement of approvalof SIA / IEM / Letter of Intent (whichever may be

applicable) from the Ministry of Commerce & Industry,Government of India

5 Admissible VAT ChargesThe eligible industrial units / enterprises shall be directly reimbursed

the charges of the value Added Tax which they have paid on the sale oftheir self produced goods after the determination of their claim on thebasis of the merit of their eligibility. The maximum limit and quantum ofthe VAT subsidy for the enterprises classified under category- A districtsshall not be more than 90 percent and the enterprises classified inCategory B districts shall not be more than 75 percent of the total VAT

payable by them. The bonafide and permanent residents of theUttarakhand State, who have established their industrial units in thedistricts classified under Category B shall also be eligible for thereimbursement of the VAT at the rate equivalent (i.e. 90 percent) to theeligible entrepreneurs in the districts classified in category A.

6 The procedure for accepting the VAT claims and its payment:

The eligible entrepreneurs shall file claims in the prescribed format to therespective District Industries Center after having determined the payabletax and payment made therewith tri-monthly, half- yearly or annually

and supported by the documents of the certified copies of the VAT paidon the sale of goods produced by their units. The following documents/connecting papers may also be enclosed with the application form.

(A)The Copy of acknowledgement of approval of the EntrepreneursMemorandum (EM) from the District Industries Center of the

concerned district in respect of the micro, small and mediumenterprises established by the entrepreneur as per therequirement of the Micro, Small and Medium EnterpriseDevelopment Act 2006 and a copy of the acknowledgement ofapproval of IEM-Part-2 / Letter of Intent from the Ministry of

Commerce & Industry Government of India, Secretariat forIndustrial Assistance in respect of a large industrial enterprise

(B)The Commercial Production Certificate issued by the DistrictIndustries Center.

(C)A certified copy of the receipt issued by the Trade Tax Departmentafter the payment of the valid VATS

(D)A certified copy of the Annual Tax Return


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8.Recovery of the Paid Claims:(A)If the enterprise have filed claims based on wrong facts or withheld

certain facts(B)The entrepreneur shall have to continue the production at least for

5 years after the commencement of the production. In case ofspecial circumstances or due to any calamity the decision of the

Director of Industries shall be final and binding on all.(C)In case of default to furnish any relevant information or detail

required in respect of the claim filed by the entrepreneur or breachof any Rule or any prescribed standard norm under the SpecialIntegrated Industrial Development Promotion Policy 2008, thereimbursed amount of the VAT subsidy may be recovered from theenterprise as land revenue.



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Incentive Scheme for the New Industrial Enterprises forReimbursement of

Electricity Bills Rules 2008

As approved by the Government of Uttarakhand under Para 5(4) of the

Notification No 488/I.D.VII-II/2008 dated 29 February, 2008 issued by theIndustrial Development Section-2,

1.Short title:

This Scheme may be called the Incentive Scheme for the New IndustrialEnterprises Reimbursement of Electricity Bills Rules 2008

2.Commencement of the Scheme& its eligibility period:

This scheme shall come into force on 1 April 2008.The facilities under

this Scheme shall be available to the eligible new industrial units, whichin existence after the Scheme came into operation, for a maximum periodof ten years from the commencement of their commercial production ortill 31of March 2018, whichever happens earlier.

3. Coverage of the Scheme:

This Scheme shall be applicable to the remote and hilly regions of theState specified in Para-2 of the Notification dated 29 February 2008

4.Definition of the manufacturing and Service Enterprises:

1.The identified eligible Manufacturing & Service sector enterprisesmeans such enterprises which has been defined in Para-1 and 2of the Special Integrated Industrial Promotion Rules, 2008following the guidelines issued by the Department of IndustrialDevelopment, Government of Uttarakhand vide Notification No-

488/I.D./VII-II-08/2008 dated 29 February 2008.

2.The Micro, Small and Medium Manufacturing and ServiceEnterprises shall have the same meaning as assigned to themunder the Micro, Small and Medium Enterprises Development

Act, 2006 and which has been set up after obtainingacknowledgement of approval of Entrepreneurs MemorandumPart I & II (EM Part-I & II) from the General Manager, DistrictIndustries Center of the concerned district.

3.The Large Manufacturing and Service Sector Enterprise meanssuch enterprise which has a larger fixed capital investment incomparison to the fixed capital investment of the micro, smalland medium enterprises as prescribed under Section 7 in


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Chapter 3 of the Micro, Small and Medium EnterprisesDevelopment Act, 2006 and which has been set up by the

entrepreneur after obtaining the acknowledgement of approval ofthe Industrial Entrepreneurs Memorandum (IEM) / Letter ofIntent/ the Secretariat of Industrial Assistance (SIA) (Whichever

applicable) from the Ministry of Commerce & Industry,Government of India

4.The Electricity Tariff means per unit consumption value of theElectricity in terms of monetary value, which includes theelectricity Consumption charges /cess/ rebate on highconsumption charges/Late fee imposed by the competentAuthority but does not include the adjustment of consumptionof energy during the winter season.

5. The activities eligible for PowerSubsidyand Quantum or limit of its reimbursement:

1.The manufacturing and Service sector enterprises falling in thecategory of the micro, small and medium enterprises, which havenot been included in the ineligible category of industries, andwhose power demand is within the eligibility limit, shall beadmissible for the reimbursement power subsidy in the followingmanner, subject to their payment of the electricity bill on theactual consumption rather than the total sanctioned capacity or

installed capacity of the power.

(i) Save the activities connected with the Thrust Sector Industrymentioned in

Annexure 2 of the Office Memorandum dated 7 January 2003issued by the Ministry of Commerce & Industry, Government ofIndia namely the Sugar and its by-products (serial no 6), Sportsgoods and articles and equipment for general physical exercise andequipment for Adventure sports/activities, tourism (to beseparately specified) (serial no 11), Paper & paper products (serial

no 12) excluding those in negative list (as per excise classification),Pharma products (serial no 13), Computer hardware(serial no 15)Eco-tourism units such as Hotels, Resorts, Spa, entertainment/amusement parks and ropeways(serial no 16), and Industrialgases based on atmospheric fraction, all other eligible activities

shall be entitled for reimbursement- subsidy at the rate of 75percent of the value of total bill paid for electricity consumptionused for manufacturing or rendering service purposes only subjectto the condition that their total demand of electricity is limited upto 100 KB or less than that per month.

(ii) All other eligible activities which includes the identifiedmanufacturing and Service Sector activities (excluding the higherconsumption industrial units) shall be entitled for reimbursement of


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electricity bills at the rate of 50 percent of the total value of the electricitybill paid by them where the consumption of electricity for the purposes of

manufacturing or rendering service is limited up to 500KB load capacitybut the units consuming electricity beyond 500KB for manufacturingpurposes or rendering service 30 percent of the total value of paid

electricity bill.

2.The industrial activities mentioned in Para-4 (B) of the notification-dated 29February 2008 e.g. hotel/motel, resorts, guesthouses, steelrolling mills, electric furnace and other units, which consume moreelectricity shall not be eligible for this rebate.

3.The industrial units engaged in manufacturing of the following goodsand, which have been identified for using larger amount of electricity arealso not eligible for availing this facility: -

Synthetic fibre, man-made fibre, Rayon Tyres and tubes of rubber manufacturing Synthetic rubber Chemicals Paper, straw board, pulp, Card board Glass manufacturing Acetylene and Oxygen Solvent extraction Plant Galvanizing, heat treatment, induction heating running on

continuous basis Aluminum refining and manufacturing Camphor cement Sulphuric acid with contact process Caustic soda Oxygen for medical purpose Distilleries and breweries Vanaspati involving Hydrogenation process (but not applicable to

refined oils) Drug manufacturing industries having fermentation process and

having contracted load more than 1MVA Chemical fertilizers Rubber emulsifier

4.All the eligible manufacturing units and the service sector enterprisesshall be entitled for the reimbursement of power subsidy on electricitybills subject to the payment of electricity bills by them on the actualconsumption of electricity for manufacturing, rendering service and foroffice use only. The reimbursement subsidy shall not be available onconsumption of power in non-productive activities such asadvertisements and slide shows and residential houses. The PowerCorporation shall determine as to what ratio of the total installed


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capacity, the electricity shall be used for manufacturing, renderingservices and office purposes and the ratio of power consumption to be

made in non-productive activities while granting electricity connection tothe unit and shall issue a certificate to that effect, on the strength ofwhich the reimbursement claims of electricity bills shall entertained.

6.The Prescribed Agency forthe reimbursement of Power Subsidy

The Directorate of Industries of the State Government shall be the NodalAgency for the distribution of the power subsidy to the beneficiaries.

7.Sanction of Power subsidy & its distribution system:The eligible enterprises shall make application in the prescribed formatsupported by the following papers /documented enclosed therewith tothe District Industries Center of the concerned district:

1.A certified copy of the Acknowledgement of the

Entrepreneurs Memorandum Part-2 filed under the provisionsof the Micro, Small and Medium Enterprises Development Act,2006 with the District Industries Center after having setting upthe micro, small and medium enterprise.

2. A certified copy of the Acknowledgement of approval of theSecretariat for Industrial Assistance (SIA) / IndustrialEntrepreneurs Memorandum (IEM) / Letter of Intent filed for the

establishment of the Large industrial unit issued by the Ministry ofCommerce & Industry, Secretariat for Industrial Assistance,Government of India.

3.The Certificate of the commencement of Commercial productionissued by the District Industries Center

4.The letter of Acceptance of installed capacity and the certified copyof the Electric Meter Sealing certificate

5.The valid electricity bill and its payment receipt duly certified6. It will be mandatory to file claim with the District Industries Center

within 3 months of the timely payment of electric bills. But the

delay caused due to unavoidable reasons can be condoned on themerit of the case.

7.The General Manager, District Industries center on receipt of theclaim shall examine it and submit before the Committeeconstituted for this purpose at the district level for approval under

the Special Integrated Industrial Promotion Rules-2008. Onapproval of the claim by the Committee, proper intimation shall besent to the claimant. On the availability of the Budget allotmentthe Directorate of Industries shall allot the budget to the concerneddistrict on the basis of demand placed by them. On receiving thebudget the General Manager, District Industries Center willdistribute the approved sum to the concerned beneficiary unit.


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8.The power subsidy shall be admissible to the enterprises foroperating the commercial activity of production and service on the

tariff determined by the Electricity Regulatory Commission or byany Prescribed Authority, which may include the ElectricitySurcharge /Cess, and late fee etc.

8.The Recovery of paid subsidy:

1. If the Subsidy has been obtained fraudulently basedon wrong facts or by suppressing or withholding anyrelevant information,

2. It is mandatory requirement for the manufacturingand the service Sector Enterprises to keep theirproduction work and services in operation for theeligibility of reimbursement Subsidy. The beneficiaryenterprises are obliged to keep their industry inoperating condition at least for 5 years from the

commencement of the commercial production of theunit. Closure due to any reasons beyond the control ofentrepreneur, the decision of the Director of Industriesshall be final, who will be the competent Authority inthis regard.

3. In case of default to furnish any information requiredOr breach of any condition laid down in Para-9 (1)

and (2)in these Rules the money received asreimbursement subsidy shall be recovered in singleinstallment as land revenue.



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Scheme for the Industrial Estate Infrastructure FacilityDevelopment Fund Rules 2008

As Approved by the Department of Industrial Development, Section-2,Government of Uttarakhand under Para 5(1) of the Notification No

488/I.D./VII-II-08/2008 dated 29February, 2008

1.Short title: -This Scheme may be called The Scheme for IndustrialEstate Infrastructure Facility Development Fund Rules 2008

2.Objects: The Scheme aims at encouraging the entrepreneurs tosetup industries in the State by providing, developing and furtherstrengthening the basic infrastructure facilities such as the supply ofpower and water, construction of roads and connecting lanes,drainage of rainy water and affluent treatment system in theindustrial estates setup by the State Government or owned by theprivate entrepreneurs.

3 Duration of the Scheme: This Scheme shall come into force on1April 2008 and will remain in operation till 31 March 2018 unlessotherwise provided by an amendment in these Rules by the StateGovernment.

Definitions:1.State means Government of Uttarakhand2.Industrial Estate/Area means the industrial estate/area developedby the State or by the private entrepreneurs notified by the StateGovernment

3.Infrastructure facility means the infrastructure facilities which areprimarily required for the establishment of industrial enterprise suchas the development of land, power and water supply, construction ofapproach roads, drainage system etc provided in the industrialestates/areas.4.Infrastructure Mapping means the areas described in Para 4 (3)

identified or earmarked with the possibilities of industrialdevelopment but presentlyin which necessary infrastructure facilities are either almost minimalor insufficient or in undeveloped state or not available at all and inwhich the present infrastructure facilities need to be improved and

strengthened.

5. The object of creating fund for the development ofinfrastructure:

The main object of creating fund is to create infrastructure facilitiesin the notified industrial estates / areas set up by the StateGovernment or by private entrepreneurs and to further develop and


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strengthen such facilities in the already established industrial estates.It also aims to help the enterprises to constitute Entrepreneurs

Cooperative Societies in the industrial estates where such enterpriseshave been setup to provide for the development and maintenance ofapproach roads, supply of water, repair of drainage system by

sanctioning a lump sum grant proportionate to their share capital.

6.Eligibility: The industrial estates/areas defined in the NotificationNo 1961/seven-II/123-Industry/08, dated 15October, 2008 issued bythe Department of Industrial Development Section-2 Government ofUttarakhand, shall be eligible to receive assistance under thisScheme.

7.The items of facilities included in the New infrastructurefacility Head

1 Setting up of power sub stations, upgrading the electric supply

or setting up new power lines for the up gradation of facilities in theindustrial areas / estates and construction of new power sub -stations.

2 Construction &maintenance of approach roads connecting thenational highways and the main roads

3 The construction and maintenance of drainage system in theindustrial estates/areas.

4 Making arrangement for water supply system in the industrialestates/areas

5 Providing sewage system for the discharge of wastes substancesand effluents

6 Development of common facility centers7 Such other facilities which the State Government may deem fit

to prescribe from time to time

8.Maintenance/Repair of the existing infrastructure facilities:

(1)For the maintenance and repair of the existinginfrastructure facilities in the industrial estates/areas,which are already in existence, the constitution of theEntrepreneurs Cooperative societies shall be promoted.

(2) A grant in aid in lump sum shall be sanctioned to suchsocieties constituted in the valid manner at the multiplerates, four times of the sum invested as share capital byits members subject to a maximum of Rupees15.00lakhs (fifteen lakhs), which shall be kept secureby way of fix-term deposit in a Bank. The interestearned on such fixed term deposit shall be used for thepurpose of maintenance and repairs of the existingfacilities in the industrial estates.


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(3)All transactions of withdrawals /disbursement of the

money deposited in the fixed term deposit account shallbe done with joint signatures of the General Manager,District Industries Center and the President of the

Society. Before affecting any withdrawals from theinterest account, a proposal shall be moved before the

Society in its meeting which a two shall pass thirdmajority of the members fulfilling a quorum.

9.Funding procedure of the Infrastructure Fund

The District Udyog Mitra shall lay down the procedure for making aresolution for funding under the Rules framed in respect of theInfrastructure Fund, after going through the deliberations to be held inits meeting on the following points: -

1 Infrastructure mapping2 The requirement and justification for creating infrastructurefacility3 Standing proposal received for funding4 An up-to-date estimate prepared & examined5 Execution of work6 Furnishing Utilization certificate within the prescribed

period7 The Udyog Mitra shall forward a Demand proposal to theGovernment through the Director of Industries annually andmake sure that the expenditure required for the fulfillment of

the works under the commitment items are commensurate tothe funds available in the Fund Scheme. It will also be ensuredthat the funds required for the completion of any relevant workis accorded sanctioned and distributed accordingly so that thework undertaken does not remain incomplete for want of funds.

10. Audit

The Directorate of Industries, Uttarakhand or its subordinate offices ofthe District Industries Center shall furnish Annual Returns relating tothe accounts of the Infrastructure Fund to the District Udyog Mitrawithin 3 months of the close of financial year for information / approval.

And thereafter the information collected from all the districts shall beforwarded to the Government through the Director of Industries.The Fund shall be audited fully and the expenditure incurred on auditshall be borne in from the share capital investment of the infrastructureFund.


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11.Resources for the Infrastructure Fund8 A lump sum amount of Rs 2 crores shall be obtained from the

State Government as resource money for generating the fundsfor the Scheme Fund.

9 A development fee shall be realized every year from thebeneficiary industrial units receiving benefits from variousSchemes which shall be deposited in the Fund

10The District Udyog Mitra shall determine the amount ofdevelopment fee considering the prevailing local conditions.

12 Miscellaneous:1 Any matter related to the interpretation regarding the implementation

of the Fund shall be referred to the Government through the Directorof Industries and the decision of the State Government in this mattershall be final and binding on all.

2 If any resolution with respect to any change or amendment in theseRules desired by the District Udyog Mitra is received through theDirector of Industries, the same shall be referred to the Governmentand the decision of the Government in this regard shall be final andbinding on all.

3 The responsibility of the implementation and monitoring of theScheme shall rest with the District Industries Center at the districtlevel and the Director of Industries, Uttarakhand at the State level.

4 For the issuance of any executive order with regard to this Scheme,the Director of Industries shall be the competent authority.

5 If any sum related an item under the Special Integrated IndustrialPromotion Rules 2008 remains as balance unused in respect of any

financial year, the same shall be transferred as appropriated to theInfrastructure Fund after obtaining approval from the Administrativedepartment of the Directorate of Industries.

PC SharmaPrincipal Secretary


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The Industrial Estate Infrastructure Facility DevelopmentPromotion State Assistance Scheme 2008

As Approved by the Department of Industrial Development, Section-2,Government of Uttarakhand under Para 5(1)(vii) of the Notification No

488/I.D./VII-II-08/2008 dated 29February, 2008

1. Short title: This Scheme may be called The Industrial EstateInfrastructure Facility Development Promotion State AssistanceScheme 2008

2. Commencement & duration of the Scheme: This Scheme shallcome into force on 01April 2008 and shall remain inoperation till 31, March 2018 unless otherwise amended.

3. Applicability: This Scheme shall be applicable to the existing or tobe newly setup industrial units carried on by the Government,Semi-Government, Cooperative, Joint venture and private sector

industrial enterprises situated in the industrial estates in theremote and hilly areas of the State as laid down under Para 2-theSpecial Integrated Industrial Promotion Policy 2008 and whichhave been identified or notified in the classifications of theCategory A and B districts.

4. Definitions:

I. The Industrial Estate means the industrial estates developedby the State or by private entrepreneurs, which has beennotified as such by the State Government.

II. The Government Industrial Estate means the industrialestate, which has been developed wholly by the StateGovernment.

III. The Private Industrial Estate means such industrial Areas,which has been established wholly by the privateentrepreneurs in accordance with the Industrial Policy of theState.

IV. The development of infrastructure facility means thecreation, development and strengthening of theInfrastructure facilities like development of Land,construction of roads, power and water supply, constructionof approach roads and drainage system in the industrial

estates / areas


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5.Eligibility: 1 The eligible industrial units shall have to fulfill thefollowing criterion /conditions to qualify themselves for the Grants or

Promotion incentives under the Scheme.(i) The land in use of the industrial estate

is in full possession and valid control of

the State Government or of the privateentrepreneurs

(ii) The State Government notifies theindustrial estate as such

(iii) The minimum the land area for thedevelopment of the industrial Estate forsetting up enterprises in private /joint/cooperative sector shall be 2 acres ormore in one stretch.

(iv) At least 50 percent of the land areaoccupied by the industrial estate shall

be allotted to the private entrepreneursbut the number of entrepreneurs inthis case shall not be less than three inany case.

(v) The layout plan / Map shall beapproved / sanctioned by theGovernment or by the authorized

Agency of the State Government e.g.the State Industrial DevelopmentAuthority (SIDA)

(vi) The estimate or proposal for thedevelopment of the infrastructurefacilities shall be approved by the StateIndustrial Development Authority(SIDA)

6 Limit of the Grant/ State Assistance:Fifty percent of the total expenditure incurred on the development of

land and infrastructure facilities used by the existing and newly set upindustrial enterprises in the industrial estates owned by the State or bythe private entrepreneurs in all the districts and regions notified under

the Scheme or Rupees 50 lakhs (fifty lakhs), whichever is less, shall bepayable as Grant in aid under this scheme.


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7 Prescribed Authority/Agency for the distribution of the Grant in

aid;

The Director of Industries shall function as the Nodal Agency for the

distribution of the grant in aid sanctioned under this scheme. In view ofthe urgency and need of the work the Nodal Agency may draw in advance

a sum from the available funds in any financial year and deposit thesame in the accounts of Uttarakhand State Integrated IndustrialDevelopment Corporation Limited (SIIDCUL) or any other agencyprescribed by the State Government for this purpose.

8.Procedure to obtain grant in aid:

1.The concerned Department of the State Government or any privateentrepreneur may apply for the grant in aid in respect of the

infrastructure facilities to be used by the existing or newly setupenterprise after taking possession of the ownership of the land in theindustrial estate and submitting the application to the General Managerof the respective District Industries Center along with the estimateapproved by the State Industrial Development authority or by any otherworks agencies authorized by the Government in this behalf. While filinga claim under the Scheme the entrepreneur shall also submit a

certificate issued to him by the State Industrial Development Authority inrespect of the completion of work undertaken by him and the quality &standard of work maintained by him. The General Manager DistrictIndustries center, shall summit all claims received by him before the

Committee of the District Udyog Mitra for the consideration and forwardthe same to the Directorate of Industries for the approval after obtainingthe recommendations / remarks of the Committee. The Director ofIndustries shall submit all the proposals received from the District UdyogMitra Committee to the High Powered Committee constituted at the Statelevel for approval or taking appropriate decision in the matter.

9 Procedure for the distribution of grant in aid:

1. The High Power Committee shall be competent to takedecision in each matter related to the eligibility or quantum ofthe grant in aid applied for. The distribution of the sanctioned

grant shall be made on lump sum basis on the availability ofthe budget through the prescribed distribution agency underthe Scheme on the completion of the proposed infrastructurefacility in the industrial estate but where the development ofinfrastructure facility work has been complete up to 50 percentand the Industrial development Authority has also issued acertificate to that effect, and where the Authority is satisfiedabout the proper use of the Fund, the 50 percent sum of the


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financial assistance can be released as an advance againstthe sanctioned grant but the remaining balance will be

released after the completion of work on furnishing a certificateabout the quality and standard of work examined by thirdparty.

2 Memorandum of understanding or Agreement deed shall besigned between the Distribution Authority and the concernedindustrial unit to be set up in the estate regarding the use ofthe infrastructure facilities created or developed in theindustrial estate. In case of the breach of any condition laiddown in the Memorandum of understanding or Agreementdeed or any matter coming into the knowledge of the StateGovernment after the distribution of the grant in aidwhereby an entrepreneur is found to have made wrongstatement or have furnished wrong information about him orwhere the industrial unit being closed down within 10 years

from the date of commencement of this Scheme, the StateGovernment, may recover the money involved in the Grant /State Assistance with interest at the rate of 18 percent to berecovered as land revenue after giving due opportunity ofhearing to the entrepreneur concerned .

3 As per the procedure laid down the concerned Departmentshall submit a report on the proper utilization of the Fund

and the expenditure made on the development ofinfrastructure facilities in the industrial estate to the StateGovernment. After receiving the State assistance for thedevelopment of infrastructure facilities the private

entrepreneur /entrepreneurs shall continue to furnish everyyear the Annual Progress Report /Audi

Hill Policy (English)

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