Uttarakhand is proud of having a history of industrial harmony with a good number of automobile and auto-component manufacturers in the state. Pantnagar and Haridwar have evolved as important auto hubs in the Northern India. Most of the Auto component units are contract manufacturers and are spread across the state with majority of them located in the Integrated Industrial areas of Pantnagar and Haridwar. There a few private industrial estates, which provide 24*7 electricity, Effluent treatment plants, waste management facility, etc. These Industrial Estates are very well connected to major cities and hubs through roads and railways. To facilitate availability of skilled and trained manpower for the sector, the state is pushing the implementation of National Skill Development Mission throughout the state. The state has a good presence of commercial banks and financial institutions to provide financial assistance to these industries for managing their working capital requirements, daily operation maintenance costs, etc.
Categorization as prescribed under MSME Policy 2015 (as amended 2016, 2018 & 2019)
Category A: Whole Districts of Pithoragrah, Uttarkashi, Chamoli, Champawat, Rudraprayag and Bageshwar
Category B:
Whole District of Almora,
All hilly development blocks of District Pauri Garhwal, Tehri Garhwal (Excluding regions under category B+),
All hilly development blocks of District Nainital and Dehradun (Excluding regions under category B+)
Category B+:
Kotdwar, Sigaddi and adjoining plain regions of Dugadda development block of district Pauri Garhwa
Dhalwala, Muni Ki Reti, Tapovan and adjoining plain regions of Fakot development block of District Tehri Garhwal
Kotabagh development block of District Nainital
Plain regions of Kalsi development block of District Dehradun
Category C:
Regions located above 650 meters from sea level in Raipur, Sahaspur, Vikasnagar and Doiwala development blocks of District Dehradun
Ramnagar and Haldwani development blocks of District Nainital
Category D:
Whole Districts of Haridwar and Udham Singh Nagar
Remaining area of District Dehradun and Nainital (which are not included in category ‘B’, ‘B+’ and ‘C’)
Industry Definitions:
Micro – up to INR 25 lakh for Manufacturing / up to INR 10 lakh for Services
Small - INR 25 lakh to INR 5 Cr for Manufacturing / INR 10 lakh to INR 2 Cr forServices
Medium - up to INR 5-10 Cr for Manufacturing / up to INR 2-5 Cr forServices
Heavy - INR 10-50 Cr for Manufacturing / INR 5-50 Cr forServices
Large - INR 50-75 Cr for Manufacturing / Services
Mega - INR 75-200 Cr for Manufacturing / Services
Ultra-Mega - above INR 200 Cr for Manufacturing / Services
Super Ultra-Mega – Investmentsabove INR 400 Cr with employment generation of minimum 400 people
Heavy Industrial Investment and Employment Promotion Policy 2018
50% exemption on Stamp duty
Mega Industrial and Investment Policy 2015
50% exemption on Stamp duty for Large, Mega, Ultra Mega and Super Ultra Mega
SGST Reimbursement
SGST Concession - Under MSME Policy 2015 (As Amended in 2019)
Category A:100% for the first 5 years and 90% thereafter
Category B, B+: 100% for the first 5 years and 75% thereafter
*The SGST after adjustment of ITC on sale of finished product (B2C) will be reimbursed from the date of commencement of production of the unit for 5 years
*Only manufacturing units are eligible to avail SGST Reimbursement
*The SGST after adjustment of ITC on sale of finished product (B2C) will be reimbursed from the date of commencement of production of the unit for 5 years
Interest Cost Subvention
Interest Subsidy under MSME Policy 2015 (As Amended in 2019), Per Year/ Unit (Only on term Loan)
Category A: - 10% (Max up to INR 8 Lakh)
Category B, B+: - 8% (Max up to INR 6 Lakh)
Category C: - 6% (Max up to INR 4 Lakh)
Category D: - 5% (Max up to INR 3 Lakh)
Special Incentive Scheme for Women Entrepreneurs
Interest subsidy of 6% on bank term loan taken by the entrepreneurs up to a maximum of INR 5 Lakh per year per unit
*Applicable across the state for both Manufacturing and Services sector
Interest Subsidy under Heavy Industrial Investment and Employment Promotion Policy 2018
Interest subsidy @ 5% to a maximum of up to INR 3 Lakh will be applicable for term loans availed from scheduled commercial bank or financial institutions
Interest Subsidy under Mega Industrial and Investment Policy 2015
Large– 7% for 5 years INR 25 Lakhs Max for per year
Mega– 7% for 5 years INR 35 Lakhs Max for per year
Ultra-Mega– 7% for 5 years INR 50 Lakhs Max for per year
Super Ultra Mega– 7% for 5 years INR 50 Lakhs Max for per year
Power Tariff Rebate
Power Bill Rebate under MSME Policy 2015 (As Amended in 2019)
Category A: Sanctioned Load up to 100 KVA: 100% for 5 years and 75% thereafter; If Load>100 KVA: 60%
Category B, B+: Sanctioned Load up to 100 KVA: 100% for 5 years and 60% thereafter; If Load>100 KVA: 50%
Power Assistance under Mega Industrial and Investment Policy 2015
Reimbursement of INR 1/- per unit on the electricity bill for 5 years from the date of start of commercial production and 100% reimbursement on electric duty for 7 years
Large – Max INR 50 Lakhs/ Year
Mega – Max INR 75 Lakhs / Year
Ultra-Mega – Max INR 1 Cr/ Year
Super Ultra Mega – Max INR 1.50 Cr / year
*Power Assistance and Reimbursement of Electricity Duty will not be applicable for units falling under the category of Hotels & Resorts under the Mega Industrial & Investment Policy
Electricity Duty Rebate
Electric duty payable / paid on the electricity bill consumed in production work will be reimbursed 100 percent to eligible enterprises (Large, Mega, Ultra Mega and Super Ultra Mega) under Mega Industrial and Investment Policy 2015