‘New manufacturing hubs in the making’

How has Uttarakhand performed on the economic front?

Uttarakhand stands among the leading states of the country in several sectors. The economy has expanded 26 times, and per capita income has risen 16 times. Uttarakhand has secured the first position on Niti Aayog’s sustainable A goals index. It has also achieved the top rank in farmers’ income growth rate. Uttarakhand has been recognised as an ‘Achiever’ in the Ease of Doing Business rankings and a ‘Leader’ in the Start-up Index. Our state budget has expanded 25 times.

Apart from achieving new development milestones, we have made progress in the fields of health, education, tourism, culture, environmental protection and employment.

What has the state done to attract the private investment?

In May, the state cabinet put its seal of approval on the new Uttarakhand Mega Industrial & Investment Policy 2025 by incorporating provisions of all capital subsidies provided in the previous policies. It has been welcomed by industry chambers.

The objective of the new policy is to establish Uttarakhand as a top destination for capital investment at the national and international level. The new policy also intends to create fresh employment opportunities by developing a favourable ecosystem for capital investment in new manufacturing units.

This policy will be effective from the date of issuance and will remain in force for the next five years. During the period, the new units intending to avail the capital subsidy benefits and other incentives will be entitled to do so as per the investment category.

What are the highlights of this policy?

Under this policy, large enterprises have been classified into four broad categories based on permanent capital investment (excluding land) – Large (more than Rs50 crore & up to Rs200 crore, with a minimum permanent employment limit of 50), Ultra Large (more than Rs200 crore & up to Rs500 crore; minimum permanent employment limit: 150), Mega (more than Rs500 crore & up to Rs1,000 crore; minimum permanent employment limit of 300) and Ultra Mega (more than Rs1,000 crore; minimum permanent employment limit of 500). A time limit of three-seven years has been fixed for the said investment from the date of application of CAF.

A provision has been made for reimbursement of 50 per cent (maximum R50 lakh) of stamp duty payable on execution of land purchase deed/ lease deed by the enterprises to be established under this policy. Under this policy, provision has also been made for capital subsidy of 10 per cent, 12 per cent, 15 per cent and 20 per cent respectively of the permanent capital investment to the large enterprises of Large, Ultra Large, Mega, Ultra Mega investment category, which will be payable in annual installments after eight, 10, 12 and 15 years respectively, after the enterprises come into commercial production.

For the promotion of the establishment of large enterprises in hilly areas, provision has been made for additional capital subsidy of 2 per cent and 1 per cent, respectively, in category A and B districts under this policy.

Has any of this translated into reality on the ground?

Of course. Today, Uttarakhand provides a robust Single Window System (SWS) and more than 30 dedicated policies to encourage investment. New industrial parks and townships are being developed in Kashipur, Sitarganj, Pantnagar and Rudrapur.

These include the development of a Smart Industrial Township over 1,000 acres in Kichha and the establishment of ‘Plug and Play’ factories in Rudrapur, Selaqui and Haridwar by SIDCUL for MSMEs. Besides, there are upcoming projects, such as an Aroma Park in Kashipur, a Plastic Park in Sitarganj, an Electronics Manufacturing Cluster in Kashipur and a Multi-Modal Logistic Park in Pantnagar.

Our governance reforms include a strengthened single-window system, simplified licensing and digitisation of more than 260 commercial services. Initiatives such as the Uttarakhand Innovation Hub (U-Hub), a R60 crore start-up incubation centre, and UK-SPISE, the state’s entrepreneurship promotion society, aim to foster innovation and investment.

What was the outcome of the Global Investors Summit attended by Prime Minister Modi?

Investment agreements worth Rs3.56 lakh crore were signed, out of which projects worth nearly R1 lakh crore have already begun materialising on the ground. We should credit this to the state’s investor-friendly approach.