Policy Framework and Schemes governing the Industrial Sector in Uttarakhand :

1.The MSME Policy, 2015 Uttarakhand :

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.

The salient features of the fiscal incentives and concessions provided under the Scheme are- 

a) 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

b) 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 

c)  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.

d) 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.

e) 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. 

f) 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, trade mark & copyright registration by the national and internationally approved agencies / institutions.

2. Mega Industrial and Investment Policy, 2015:

 Government of Uttarakhand has promulgated Mega Industrial and Investment Policy 2015 to promote large scale units above Rs. 75.00 crore investments.

3.  Sector Specific State Bodies/Agencies :

State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIDCUL) plays a key role in industrial development of the state- both in terms of policy formulation and infrastructure development. Industries Association of Uttarakhand (IAU) is an apex body of small and medium scale industries of Uttarakhand and assists in the development of small and medium scale enterprises in the state. For promotion and growth of food processing industries in the state, Department of Horticulture & Food Processing is the nodal agency. Beside scheme of MSME,food processing industries are setup under HMNEH ( Horticulture Mission for North East and Himalayan States(HMNEH) ) and state food processing mission.

4. Technology Interventions:

Department of Horticulture & Food Processing, Uttarakhand has been adopting various technologies in different schemes for enhancement of production and productivity and quality of fruit, vegetable, spices and flowers by adopting cluster approach, which include setting up of nurseries, tissue culture labs and distributions of planting material, vegetable seed production, area expansion, rejuvenation of old and senile orchards, creation of community and individual water sources, protected cultivation, organic farming, pollination support through bee keeping, promotion of mushroom cultivation, mechanization, training of farmers and officials, awareness campaign, post harvest management and marketing and food processing. components includes on farm handling units, cold storages, storages, pre-cooling units, ripening chambers, primary processing / value addition units, refrigerated vans, under marketing component rural markets, whole sale & terminal markets, functional infrastructure for collection, sorting, grading packing, establishment of horticulture produce based  new processing units, modernization and up-gradation of existing units are taken up.

5.  New Initiatives taken by State :

• State Government has launched several  new schemes viz.  Apple Mission for cultivation of Ultra High Density Apple, Walnut Mission, Small Nurseries, production of off season vegetables, Vermi compost units etc.
• To reduce post harvest losses projects for Rs. 16.5 crore submitted to NABARD under RIDF( Rural Infrastructure Development Fund ).
• New project for Rs. 700.00 crore has been submitted to Government of India for World Bank Assistance.
• Centre of Excellence on temperate fruits for Rs. 5.00 core is being setup under HMNEH by UUHF ( Uttarakhand University of Horticulture & Forestry), Bharsar.
• Two Centre of Excellence on Walnut being set up at Chaubatia, Ranikhet and Magra ,Tehri Garhwal.
• Farmers are being provided free service regarding crop specific agro-techniques including disease/pest, market and weather information daily through SMS on mobile by Reuters Market Light Company.