Union Budget 2023-24
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Sector Construction
State Uttarakhand
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Overview

Eligible / Positive List of Industries for Incentive –

  1. Building and construction project more than 20,000 sq. meter built-up area
  2. New highway construction project

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 Garhwal
  • 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 for Services

Medium - up to INR 5-10 Cr for Manufacturing / up to INR 2-5 Cr for Services

Heavy - INR 10-50 Cr for Manufacturing / INR 5-50 Cr for Services

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 – Investments above INR 400 Cr with employment generation of minimum 400 people

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State Incentives

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  • One-Time Incentives
  • Recurring Incentives
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Land Cost Rebate
  • Land Rates Rebate under Heavy Industrial Investment and Employment Promotion Policy 2018
    • 100% at the time of allotment will be eligible for 5% rebate
    • 50% at the time of allotment and balance 50% within 2 years in 2 equal instalments
  • Land Rates Rebate under Mega Industrial and Investment Policy 2015
    • Large – Rebate of 15%, on SIIDCUL prevailing land rate
    • Mega – Rebate of 25%, on SIIDCUL prevailing land rate
    • Ultra-Mega – Rebate of 30%, on SIIDCUL prevailing land rate
    • Super Ultra Mega – Rebate of 30%, on SIIDCUL prevailing land rate
Fixed Capital Rebate
  • Capital Subsidy - Under MSME Policy 2015 (As Amended in 2019)
    • Category A: 40% (Max up to INR 40 Lakh)
    • Category B, B+: 35% (Max up to INR 35 Lakh)
    • Category C: 30% (Max up to INR 30 Lakh)
    • Category D: 15% (Max up to INR 15 Lakh)

*Capital Subsidy will be applicable on the fixed investment in factory building, plant & machinery

  • Special Incentive Scheme for Women Entrepreneurs
    • Capital Subsidy - Capital investment subsidy of 25% up to a maximum of INR 25 Lakh

*Applicable across the state for both Manufacturing and Services sector

Stamp Duty Exemption
  • MSME Policy 2015 (As Amended in 2019)
    • Category A, B, B+, C: 100% exemption
    • Category D: 50% exemption
  • 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
Other Incentives
  • Quality Certificate Reimbursement under MSME Policy 2015 (As Amended in 2019)
    • 75% (maximum INR 1 Lakh): Reimbursement of cost incurred for carrying out standardization and quality certification of products by accredited institutions at national and international level by means of ISO, ISI marking, registration of copyright, trade marking etc.
  • ETP Subsidy
    • Heavy Industrial Investment and Employment Promotion Policy 2018 - 30% up to a maximum of INR 20 Lakhs
    • Mega Industrial and Investment Policy 2015 - 30% up to a maximum of INR 50 Lakhs
  • Land Registration Fees under Mega Industrial and Investment Policy 2015
    • Land registration fee @INR 1/- per INR 1000/-
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

  • SGST Concession under Mega Industrial and Investment Policy 2015
    • Large: 30%
    • Mega / Ultra Mega/ Super Ultra Mega: 50%

*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
Other Incentives
  • Excise Duty Reimbursement under State Excise Policy categories under MSME Policy 2015 (As Amended in 2019)
    • Category A, B: 75% reimbursement on State Excise Duty, Additional Excise Duty, bottling fees and other charges as

*only for Manufacturing Units

  • Transport Subsidy under MSME Policy 2015 (As Amended in 2019) - % of Annual Turnover (Per year/ unit) or Inbound/ Outbound Logistics Cost whichever is less
    • Category A: 7%
    • Category B: 5% 
    • Category B+: 5%

(Max INR 5 Lakh), or actual transportation cost, whichever less*

Only manufacturing units are eligible to avail Transport Subsidy

  • Extra Employment Subsidy under Mega Industrial and Investment Policy 2015
    • INR 500 Per Month per Male (Max 10 Years)
    • INR 700 Per Month per Female (Max 10 Years)

*To avail the benefits of this policy, it will be necessary for each unit to employ at least 70% of its total workforce which are a domicile of Uttarakhand

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