The Cabinet on Wednesday approved additional allocation of Rs 1,164.53 crore for an industrial development scheme for Himachal Pradesh and Uttarakhand.
The additional fund was required to meet the committed liabilities under the Industrial Development Scheme, 2017 for 774 registered units up to 2028-29.
The additional fund was approved as the total financial outlay of Rs 131.90 crore was exhausted during April 2017-March 2022.
"The requirement of an additional fund to meet the committed liabilities up to 2028-2029 is Rs 1,164.53 crore. For allocation of this additional financial outlay, approval of the Cabinet was solicited under Industrial Development Scheme, 2017," an official statement said.
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Briefing media about the decision, Union minister Anurag Thakur said that 774 units were registered under the scheme and the additional fund will go to them.
These units have helped in creation of about 49,000 jobs.
The government provides incentives under the scheme to companies for investment in these two states.
The incentives include access to credit and insurance.
The statement said that all eligible new and existing industrial units on their substantial expansion in the manufacturing and service sector located anywhere in Himachal Pradesh and Uttarakhand will be provided Central Capital Investment Incentive for Access to Credit (CCIIAC) at the rate of 30 per cent of the investment in plant and machinery with an upper limit of Rs 5 crore.
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The units are also eligible for reimbursement of 100 per cent insurance premium on insurance of building and plant and machinery for a maximum period of 5 years from the date of commencement of commercial production/operation.
No fresh registrations are allowed under the scheme.
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