Mega Industrial and Investment Policy - 2021

Mega Industrial and Investment Policy - 2021 is still active for entrepreneurs and business entities in Uttarakhand. The scheme offers financial incentives, electricity subsidies, and employment support to attract large-scale capital investment in the state.

Implemented by the MSMEs Department under the Department of Industries, Government of Uttarakhand, this policy classifies projects into four tiers based on Fixed Capital Investment. Eligible applicants can get land rate rebates, interest subsidies, SGST reimbursement, and payroll assistance for up to 5 years.

Mega Industrial and Investment Policy - 2021

This scheme helps you set up or expand industrial projects in Uttarakhand. It covers manufacturing and select service sector projects in government industrial areas and other notified locations. The policy was operationalised through detailed guidelines issued in December 2022.

To get benefits under this scheme, you need to register on the official Single Window Portal and submit your project details along with required documents. The department reviews each application and approves incentives based on the project classification.

Key Information

Benefits

The policy classifies projects based on Fixed Capital Investment. Each tier gets different levels of support:

You can avail of several financial incentives based on your project tier:

Land Rates: You get a rebate on prevailing land rates in SIIDCUL Industrial Areas for manufacturing. This ranges from 15% for large projects, 25% for mega projects, and 30% for ultra mega and super ultra mega projects.

Interest Subsidy: The government reimburses interest on term loans for 5 years. The subsidy rate is 7% for all project types, with annual caps of ₹25 lakh for large projects, ₹35 lakh for mega projects, ₹50 lakh for ultra mega projects, and ₹75 lakh for super ultra mega projects.

SGST Reimbursement: You receive a reimbursement of net SGST for 5 years after adjusting for Input Tax Credit. This is set at 30% for large projects and 50% for mega projects and above.

Electricity Support: You get ₹1.00 per unit back on your electricity bills for 5 years. The annual caps are ₹50 lakh for large projects, ₹75 lakh for mega projects, ₹1 crore for ultra mega projects, and ₹1.50 crore for super ultra mega projects. You also receive 100% reimbursement on electricity duty.

Stamp Duty and Registration: You get 50% reimbursement on stamp duty for land deeds, and registration fees are ₹999 per ₹1,000.

Payroll Assistance: to encourage hiring, you receive a subsidy for employees hired beyond your project's minimum limit. The minimum limits are 50 for large projects, 100 for mega projects, 200 for ultra mega projects, and 400 for super ultra mega projects. The subsidy is ₹500 per month per employee (₹700 for women employees) for 5 years.

ETP Subsidy: for your environmental compliance, you can claim a 30% capital subsidy up to ₹50 lakh to set up an Effluent Treatment Plant.

Eligibility

You are eligible to apply if you are an individual or a business entity planning to invest in Uttarakhand under the norms of this policy. Whether you are starting a new venture or expanding an existing large-scale project, your investment must align with the capital thresholds defined in the project classification. The project must be located in designated industrial areas of Uttarakhand and must involve significant capital investment in plant, machinery, and land.

Application Process

STEP 1 - Visit the official Single Window Portal at investuttarakhand.uk.gov.in and register your business profile. Fill in the basic details of your company and promoters.

STEP 2 - Submit your project proposal along with the Detailed Project Report (DPR) and investment proof. Make sure all documents are uploaded in the required format.

STEP 3 - Apply for In-Principle Approval from the Industries Department. The department will review your project against the policy guidelines and eligibility criteria.

STEP 4 - Obtain the Provisional Eligibility Certificate (PEC) once your project is approved. This certificate is required to avail of the financial incentives.

STEP 5 - Set up your unit and commence commercial production. After production starts, apply for the Final Eligibility Certificate and submit claims for incentives such as SGST, electricity, and payroll support.

Documents

You will need to keep your business registration documents, land allotment deeds, bank loan sanction letters, and project reports ready. You can find the complete checklist of required documents on the official portal.

References

Mega Industrial and Investment Policy 2021 (Full Policy Document)

Operational Guidelines (MIIP 2022)

Invest Uttarakhand Policies Page

FAQ's

Who is eligible to invest under this policy?

Any person or business entity aiming to invest in industrial projects within Uttarakhand as per the classification criteria is eligible to apply. The project must be located in a designated industrial area.

How can I apply for these incentives?

You should apply online through the official single-window system at investuttarakhand.uk.gov.in.

Are there specific employment requirements for payroll assistance?

Yes, you must employ a minimum number of regular staff to qualify. The limits are 50 for large projects, 100 for mega projects, 200 for ultra mega projects, and 400 for super ultra mega projects. Once you exceed this limit, you become eligible for the monthly payroll subsidy.

How long are the interest and electricity subsidies valid?

Both the interest reimbursement for term loans and the electricity bill assistance are provided for a period of 5 years from the start of operations or relevant issuance dates.

Can I get help for environmental compliance?

Yes, the policy provides a capital subsidy of 30%, capped at ₹50 lakh, for the installation of an Effluent Treatment Plant (ETP).