February 11, 2015: The government of Uttarakhand has announced state’s first micro, small and medium enterprise (MSME) policy. This policy will aim to boost entrepreneurship, end outward migration and ensure development of the state including remote and flood struck areas.
The policy, according reports, is heavy on incentives including capital investment subsidy, interest subsidy and VAT reimbursement.
The policy will target key sectors for MSME development agro-based food processing and allied industry, handloom, hosiery, khadi and so on, sectors which the state excels in. To promote the same the government will also set up two mini textile parks, one each at Munsiyari in Pithoragarh district and Bhimtalla in Chamoli district.
Under the policy, the state has been divided into four major categories, where in remote areas including Pithoragarh, Bageshwar, Rudraprayag, Champawat, Chamoli and Uttarkashi are category A and can avail 40 per cent capital investment subsidy. While category B, including Pauri, Tehri, Almora and the hill areas of Dehradun and Nainital district, can avail 35 per cent of subsidy and Raipur, Sahaspur, Vikasnagar, Ramnagar, the Doiwala area of Dehradun and the Haldwani area of Nainital district, category C, canget upto 30 per cent subsidy. Last, category D which will get 15 per cent, comprise of Haridwar and Udham Singh Nagar districts.
With this policy the government also targets to train 1000 youths, annually, to become entrepreneurs.
The other benefits include VAT reimbursement in next, development of land bank, 100 mini industrial estates. The policy which was announced yesterday will be in force till March 31, 2020 while the beneficiaries of incentives can avail them until March 31, 2025.