Daily Current Affairs

Cabinet Approves Funding for IDS, 2017 in Himachal Pradesh and Uttarakhand

Uttarakhand Polity and Governance

Why In News?

The Union Cabinet has granted approval for an allocation of Rs. 1164.53 crore for the Industrial Development Scheme (IDS) 2017 in Himachal Pradesh and Uttarakhand.
The IDS 2017 was initially introduced in 2018 with a financial outlay of Rs. 131.90 crore, which was fully utilized by the fiscal year 2021-22.
To fulfill committed obligations until 2028-29, an additional fund was required, prompting the Cabinet’s approval.
Under the IDS 2017, new and expanding industrial units in the manufacturing and service sectors in these states will receive incentives such as Central Capital Investment Incentive for Access to Credit (CCIIAC) and Central Comprehensive Insurance Incentive (CCII).
These measures aim to stimulate industrial growth and create job opportunities.

What is the purpose of the Industrial Development Scheme (IDS) 2017 for Himachal Pradesh and Uttarakhand?

The IDS 2017 aims to promote industrial development in these states by providing financial incentives to new and expanding industrial units in the manufacturing and service sectors.

What are the incentives offered under the Central Capital Investment Incentive for Access to Credit (CCIIAC)?

Eligible industrial units can receive CCIIAC, which is 30% of the investment in Plant and Machinery, capped at Rs. 5.00 crore, facilitating access to credit.

How does the Central Comprehensive Insurance Incentive (CCII) benefit industrial units in Himachal Pradesh and Uttarakhand?

Industrial units can receive a 100% insurance premium reimbursement for building and Plant & Machinery for up to 5 years from the start of commercial production/operation.

What is the expected impact of the Cabinet’s approval on industrial growth in Himachal Pradesh and Uttarakhand?

The decision is anticipated to lead to the establishment of 774 registered units, resulting in approximately 48,607 direct employment opportunities, thereby stimulating industrial growth.

How does the IDS 2017 align with the government’s broader economic development goals?

The IDS 2017 promotes economic growth and job creation in Himachal Pradesh and Uttarakhand, contributing to the government’s aim of fostering industrial development and reducing unemployment.