Shimla, June 1 (IANS) To woo the investors, the Himachal Pradesh government has decided in principle to adopt industries-by-invitation approach.
“For inviting the industry to come and invest in the state, the government has decided to set up a bureau of investment which will facilitate the industry,” Industries Minister Mukesh Agnihotri told reporters here.
He said the state is going to organise an investors’ meet in Baddi, the state’s industrial hub, in October-November where entrepreneurs from across the country would be invited.
Agnihotri said the state-level Single Window Clearance and Monitoring Authority has approved 247 projects in the past three years, involving an investment of Rs 12,571.83 crore, while various procedures have been simplified for setting up industries under the ‘ease-of-doing-business’ policy.
The minister said the state had allocated Rs 100 crore for development and strengthening of infrastructure in Baddi-Barotiwala-Nalagarh industrial belt that accounts for 35 per cent of the Asia’s total pharmaceutical production.
Currently, the state has over Rs 20,000 crore investment in the industry.
Agnihotri said despite withdrawal of incentives provided to the state under the special industrial package like central excise duty and income tax holiday for new industrial units from 2003 to 2010, the state has provided various incentives, including fixation of the rate of electricity duty for five years and rationalisation of entry tax.
He said the state had approved industrial proposals worth Rs 45,000 crore during the special industrial package but got investment worth only Rs 12,000 crore.
“But where has the remaining investments gone?” he asked.
Official data shows that Himachal Pradesh got maximum investment when there was a special industrial package of the central government.
Most investment was in pharmaceutical, food processing, textile, packaging and light engineering sectors.
For the new investments, the minister said the enterprises would now be required to submit only self-certified documents online or manually. All the departments would issue provisional registration within 15 days from submission of the documents.
Agnihotri said all industries employing at least five people and taking loan from banks would be provided interest subvention at the rate of four per cent up to a loan of Rs 10 lakh for three years.
Apart from it, the stamp duty for registration of land for new industries would be charged at the rate of three per cent only, he said.
The minister said three state-of-the-art industrial areas being developed at Pandoga in Una district, Kandrodi in Kangra and Dhabota in Solan district.
Tourism as well as horticulture and hydropower generation are major contributors to Himachal Pradesh’s economic development.