Himachal Pradesh is situated in the north-west corner of India in the
lap of Himalayan ranges. Agriculture and horticulture are the mainstay
of Himachal economy, as 71% of the people are engaged in it. The state
continues to be industrially backward despite vast natural resources
endowment and availability of cheap hydel power. Its priority sectors
are Agro-processing, Hydro-electric power, Tourism and electronics. It
has a power surplus of 30.43%.
Land area: 55,673 sq. km.
Population: 5.2 million
Capital: Shimla
Per Capita Income: Rs 7,784
Inflation Rate: 11.1%
Himachal Pradesh has a relatively stable government, and a responsible
local administration. The government offers numerous incentives to new
industries, with special emphasis on tourism. The massive supply of
power is an added advantage to new industries. Despite these, Himachal
has poor railway and road connections with the rest of the country.
Incentives:
- 75% subsidy on the cost of feasibility studies (up to Rs 100,000)
for medium and large scale units.
- Out-of-turn allotments of plots and sheds for priority-sector
industries. Reimbursement of the cost of land and shed for new
priority-sector units in Category A blocks.
- Investment subsidy for tiny industrial units of up to 15% (up to
Rs 75,000) of project cost.
- 5% interest rate subsidy for tiny and small-scale units in
Category A and Category B blocks.
- 50% subsidy on consultancy fees for projects set up by
non-resident Indians.
- Concessional 1% rate of sales tax for 12 years (Category A); 9
years (Category B); and 6 years (Category C).
- Deferment of sales tax (up to 200% for 6 to 9 years) of the fixed
capital investment.
