Himachal Pradesh Industrial Investment Policy

Himachal Pradesh, owing to its vast area of land and other striking geographical features, is endowed with natural resources suitable for industrial and other business opportunities. The Industrial Investment Policy was launched in September 2019 to improve the industry sector, especially MSMEs in the state, through incentives and special attention. Various business opportunities are available to all-scale industry sectors and single entrepreneurs in the present period of an upward trend in investments, with the core economic strength on business activities related to:

Agriculture
Horticulture
Animal Husbandry
Limestone mines and other related activities in the primary sector

Besides, industries (anchor industries) that have been running for a very long time also have the opportunity to access State Government incentive benefits in a way to ensure financial prosperity and more employment opportunities to the local people.

Vision

To create an ecosystem compatible with industries
To improve and increase the scale of economic development
To provide more employment opportunities
To ensure sustainable development & balanced growth of industrial & service sectors

Objectives

To promote ease of doing business (EODB) through digital facility and self-certification
To serve as a standard for creating a friendly-investment climate for existing industries to prosper
To attract new investments in the state to create more job opportunities for young people, while keeping the development of Industrial & Service Sector in mind
To simplify the procedures related to infrastructures, human resource, access to market
To improve food industry sectors, agriculture, and horticulture in a way to ensure rural prosperity
To cater to MSME sectors for job opportunities and financial growth across the state and benefit stakeholders
To encourage start-ups and entrepreneurship to create and generate local businesses
To encourage large investments to expand the scale of economic development, employment opportunities, revenue generation, and remunerative prices to local resources
To improve the lifestyle of weaker sections of society

Strategy of the Policy

To make rules and regulations easy by introducing self-certification, clearances in a timely manner to ensure EODB through the digital facility
To create and upgrade of existing industrial infrastructures
To create a private land bank
To make allowances for incentives and concessions for industries for economic development. This purpose is for the benefit of the majority of H.P natives to achieve economic prosperity.
To create a favorable environment for:
- Start-ups
- Sustaining traditional cottage industries
- Technological improvement
- Recovering from industrial weakness
- Promoting Research and Development
- Industrial productivity
To create awareness by giving importance to:
- Cottage handloom and handicraft industries
- Rural-based economic sectors like - Food processing, Agriculture, and Horticulture
- Tourism
To create an awareness of a clean environment among industries that causes pollution. To insist and encourage industries to go for pollution-free technologies.

Positive Aspects of Investments in Himachal

Regardless of the rough geographical pattern, many investors are enticed because of positive factors like:

Low-cost quality power
Harmonious industrial relations
Low cost of land
Clean environment
Investor-friendly administration
Attractive incentives
Tax concessions
Accessibility to northern markets of India

Eligibility for Availing Incentives

Industrial sectors that eligible for incentives are:
- All New Industrial Enterprises
- New Enterprises involved in “Specified Category of Service Activities”
- All Existing Industrial Enterprises opting for Substantial Expansion
- All Existing Service Enterprises involved in “Specified Category of Service Activities” opting for Substantial Expansion
The aforementioned categories of industries are eligible provided:
1. 1. Requirements are met with respect to the eligibility criteria & conditions as per the Rules regarding Grant of Incentives, Concessions & Facilities to Industrial & Service Enterprises in Himachal Pradesh, 2019
  2. Employment is given directly by industries to a minimum of 80% people of Himachal native of all social backgrounds on a regular, contractual-based, etc. (OR)
  3. Employment is given to 80% of Himachal natives through “contractors” or “outsourcing agencies” at the time of initiating commercial operations (or) during commercial services by the new enterprises established under this policy.
  4. Additional employment is given to at least 80% of Himachal natives by existing enterprises involved in the substantial expansion.
Incentives are effected from the day of commencement of industrial operations (OR) from the date of permission given by the relevant or concerned department to incentivize eligible industries.