The MSME Policy, 2015 Uttarakhand :

Government of Uttarakhand has sanctioned the “MSME Policy-2015” for promoting investment in the MSME Sector through Investment Promotion as well as to incentivize MSMEs. The Policy aims at utilizing local resources and to generate employment opportunities and promoting Self Employment, Skill Development in the Youth. The Policy shall remain in effect till 31st March 2020. Fiscal incentives and other benefits of this policy shall be available to the eligible enterprise from the commencement of production upto a maximum of 10 years or 31st March 2025, whichever is earlier.

State Government has formulated MSME Policy 2015, to provide incentives for setting up of industries including food processing industries which has subsumed the Special Integrated Industrial Promotion Policy 2008 for Hilly & Remote Areas of Uttarakhand.

Salient Features :

Land development promotional scheme :

•   Allotment of land for setting up of industrial units on priority basis with availability of general facilities like electricity, road, water supply, connecting roads etc.
• Full concession on stamp duty for purchase / lease of land from industrial areas developed by State Govt. / private sector.
• The process of land use change to be simplified

Special State Capital Production Incentive:

 Industries making investment in certain areas of the state shall be provided capital incentives depending on the areas- at the rate of 25 percent of the total investment subject to a maximum of Rs. 40  lakh in certain areas and at the rate of 20 percent of the total investment subject to a maximum of Rs. 25 lakh in other areas 

Interest subsidy: 

Industries (in specified geographies) seeking loan through Banks/Financial Institutions shall be given incentives of loans at concessional rates- of simple interest up to @ 6 percent per annum on term loan, with a ceiling of Rs. 5 lakh per unit per annum to units in some areas and @ 5 percent subject to ceiling of Rs 3 lakh per unit per annum in other designated areas.

Power Concession to new Industrial Units: 

All new industrial units (in designated areas) engaged in manufacturing and production of goods including the industrial enterprises engaged in the activities in service sector shall be entitled for 100 percent rebate or exemption on electric bills for a period of ten years. This is not applicable to hotels, resorts, furnaces etc. The industries based on fruit preservation, herbal and medicinal plants and domestic produce shall be given due preference and priorities in this scheme.

Grant towards transport subsidy in hilly areas:

 In order to promote industrial units based on raw material produced in hilly areas, the transport subsidy @ 5 percent of annual turnover (maximum of Rs 5 lakh) will be provided by the State Government to compensate the higher cost of transportation for units in designated areas and 3 percent of annual turnover (maximum of Rs 3 lakh) for units in other designated areas. 

Grant in aid :

State Government will provide grant-in-aid to set up the industrial unit @ 75 percent of expenditure with a ceiling of Rs. 2.00 lakhs per project towards payment of ISO certification, ISI mark, quality marking, BIS & FPO license, trade mark & copyright registration by the national and internationally approved agencies / institutions.

Institutional Support, Simplification and Enactment :

 i. Single Window Facilitation and Clearance Act ii. Creation of MSME development fund iii. Udhyog Mitra committee for addressing various issues of MSMEs iv. Uttarakhand Micro and Small Enterprises Facilitation Council v. Entrepreneurship and Skill Development Cell vi. Vendor/Ancillary Enterprises and Cluster Development Cell.

Infrastructural Support :

 In order to ensure easier availability of developed industrial lands at reasonable rates to MSMEs, the following provisions have been made:- i. Establishment of Land Bank ii. Infrastructural development fund for MSMEs iii. Special Industrial Estate for MSMEs iv. Establishment of New Industrial Estates v. Establishment of Multi-Storied Estates vi. Upgradation of Existing Industrial Estates vii. Establishment of Vendor and Ancillaries Parks viii. Interventions under Cluster Development Scheme.

Promotion of Self- Employment :

 i. Self-employment and Entrepreneurship Day- Last Friday of every month is being convened as “Self-employment and Entrepreneurship Day” in all Districts. Officers from all related departments, banks and other organizations are present to provide information and advise the entrepreneurs. At State Level Industries Associations and Head of the Departments of the concerned departments meet in the Directorate of Industries. Potential investors are also invited.

Special Scheme for Promoting Women Entrepreneurship (Nav Disha Yojana) :

 A special scheme of providing 25% Capital Subsidy (maximum Rs. 25 lacs and Interest Subsidy @ 6% (maximum Rs. 5 lacs per unit per annum) has been approved to encourge women entrepreneurship in manufacturing as well as services sector.

The Policy shall remain in effect till 31st March 2020. Fiscal incentives and other benefits of this policy shall be available to the eligible enterprise from the commencement of production upto a maximum of 10 years or 31st March 2025, whichever is earlier.