Entrepreneurs Encouraged to Invest in Tourism, Education, and Other Industries by Himachal Pradesh's Chief Minister
Himachal Pradesh, the picturesque state nestled in the northern part of India, is gearing up to showcase its investment potential at the 'Himachal Pradesh Global Investors Meet-2019' in Dharamshala on June 10 and 11. The event, organised by the Confederation of Indian Industries (CII), is being attended by entrepreneurs from various sectors, including tourism, electronics and information technology, education and skill development, urban development, real estate development, healthcare and Ayush, Manufacturing, pharmaceuticals, infrastructure and logistics, power and renewable energy, agro and food processing, and more.
The state government has prepared an industrial policy that aims to establish state-of-the-art infrastructure, promote the manufacturing sector, enhance inclusivity, foster innovation, and create employment opportunities across sectors. To attract investors, Himachal Pradesh offers several incentives and concessions.
Key Investment Opportunities and Incentives in Himachal Pradesh
1. **Tourism** - Himachal Pradesh, known for its natural beauty and cultural heritage, encourages investments in eco-tourism, hospitality, adventure tourism, and wellness centers. - Specific incentives directly linked to tourism are not detailed, but tourism benefits indirectly from infrastructure and urban development incentives.
2. **Electronics & IT** - The state supports the electronics and IT sectors under its industrial policies, including subsidies for project reports, electricity concessions, and export promotion incentives.
3. **Education & Urban Development** - The government favors projects that contribute to urban development and quality education infrastructure, offering concessions and facilitation for private investment in these sectors.
4. **Real Estate** - Entrepreneurs investing in industrial real estate or urban infrastructure get concessions on land rates—up to 50% for developed lands, increasing for developing and tribal areas, alongside stamp duty benefits.
5. **Healthcare & Pharmaceuticals** - Himachal Pradesh promotes medical infrastructure and pharmaceutical manufacturing through capital investment incentives and subsidies on utilities and infrastructure.
6. **Manufacturing** - Incentives include repayment of up to 80% of Net SGST paid for 7 years, subsidies on transportation costs, concessional electricity rates, and reimbursements for expenses related to green technology adoption. - Anchor enterprises investing over Rs. 200 crore and employing over 200 locals get special concessions on industrial land, registration fees, and other expenses.
7. **Infrastructure & Power** - The state offers substantial support for infrastructure projects including power plants, with concessions on land, electricity, and infrastructure development. - Although Himachal has relatively low baseline electricity charges, green energy projects receive fewer reductions compared to other regions; still, subsidies and waivers exist to encourage renewable projects like green hydrogen and solar power.
8. **Renewable Energy** - Renewable energy entrepreneurs benefit from incentives including capital subsidies and concessional electricity charges, though Himachal’s baseline charges are already low, limiting the scope of further subsidies.
9. **Agro and Food Processing** - The state incentivizes agro-based industries by offering subsidies on transportation, utilities, and infrastructure to boost exports and local processing units.
Specific Incentives for Industrial Enterprises in HP - **Land cost concessions:** 50% for developed areas, 60% for developing areas, and up to 75% for tribal/unindustrialized areas. - **SGST reimbursement:** Up to 80% repayment on Net SGST paid for seven years post-investment. - **Stamp duty and registration fee reductions:** Ranging from 20% to 50% based on land category. - **Transportation subsidies:** Costs reimbursed up to 5% of annual turnover subject to Rs. 30 lakh per annum. - **Assistance for patent filing and use of green fuels.** - **Electricity concessions:** Lower electricity rates and incentives for renewable energy projects. - **Incentives for Export-Oriented Units (EOUs):** Benefits to promote exports. - **Support for MSMEs and large-scale units:** Including subsidies for preparation of project reports and upgradation.
These incentives are geared towards enterprises that have significant fixed capital investment, generate local employment, and operate within designated industrial areas, especially benefiting anchor enterprises with large-scale investments and job creation.
In conclusion, Himachal Pradesh offers competitive incentives aimed at attracting significant capital investment with a focus on local employment and sustainable industrial development. Entrepreneurs in these sectors can avail of substantial discounts on land costs, tax rebates, electricity concessions, and transportation subsidies, making it an attractive destination for starting or expanding businesses across a variety of industries.
- In line with its goal of fostering innovation, Himachal Pradesh offers concessions and facilitation for private investment in projects that contribute to urban development and quality education infrastructure, falling under the scope of education and self-development.
- As part of its industrial policies, Himachal Pradesh encourages investments in projects that focus on urban development and quality education infrastructure, providing incentives that can be considered as part of the broader umbrella of education and self-development.
