In order to realize the full investment potential of Himachal Pradesh and to give a quantum boost to the economic development of the State, a slew of measures having wide ramifications for prospective investors and entrepreneurs has been approved by the Government of the Chief Minister Shri Jai Ram Thakur on June 1, 2019. The primary objectives of these reforms are to showcase the distinctive advantages of investing in the State and to facilitate ease of doing business, elimination of unnecessary procedures , time bound approval for investment proposals , online sanction of projects and to extend comprehensive fiscal and non fiscal incentives to attract national and international investment in the State in a wide range of manufacturing and services sectors activities such as tourism , hospitality , real estate, housing, food processing, wellness centers, AYUSH facilities, information technology, skill development, power, pharmaceuticals , manufacturing, MSME etc.
The salient features of these reforms include:-
• A big step has been taken in the direction of simplifying and speeding up the process of purchase and lease of land in the Pradesh for industrial activities and other investment proposals. Persons and companies desirous of purchasing/leasing land for their businesses will no longer have to run from pillar to post to obtain No Objection
Certificates from various departments which were earlier required for obtaining an Essentiality Certificate before purchasing land for a project. This reform will drastically reduce the time in setting up projects in the Pradesh besides reducing footfalls in different offices. Permission of land purchase in the Pradesh will now be a smooth and hassle free online process for the prospective investors.
• Himachal being a scenic and picturesque State endowed with all the nature’s bounties , a big boost has been provided to the film and entertainment industry for shooting movies in the Pradesh through a separate film policy. The measures under this policy include creation of a Film Development Fund for financing schemes for film development and related infrastructure, attractive sops for shooting films in the State and for developing a Film City, studios, labs and shooting locales. The State Government will allow usage of its air strips and helipads to facilitate movement of crew and artists throughout the State. Attractive financial benefits and grants will be given for shooting of regional films, vernacular films and for revival of closed cinema halls or for setting up of multiplexes and other centres of entrainment. Incentive will also be given for training of local artists and technicians. These measures will showcase Himachal Pradesh as a very attractive and popular film shooting destination of the country.

• To give a boost to the MSME sector which forms the back bone of the State economy, entrepreneurs have been allowed to initiate physical implementation of their projects through a system of self certification up to a period of two years . The policy provides for interest subvention on term loan of up to Rs. 20 lakhs for enterprises and reimbursement of up to Rs. 10 lakhs for filing of patents. Additional benefits such as financial assistance for preparation of DPRs, e marketing ,reimbursement of cost incurred on inland carriage and transit insurance up to Rs. 3 lakhs and participation in trade fairs are also provided for in the policy .
• Wide ranging fiscal and non fiscal incentives have been offered to the investors in the Pradesh in the industrial policy- 2019. Capital infrastructure subsidy up to Rs. 25 crore will be admissible for setting up private industrial areas and theme parks in areas such as agro, herbal, food processing, IT/ITES, pharmaceuticals and textile.
• To encourage fresh industrial investment in the State, the industrial policy has provided for allotment of land to enterprises at the concessional rate of up to 70% in the industrial areas an easy payment schedule spreading over many years.
• A very important objective of the industrial investment policy is strengthening of common industrial and social infrastructure in the Pradesh. Private sector investment for creation and up gradation of common effluent treatment plants, working men and women hostels, schools, testing centres, R&D centres, tool rooms and recreational facilities has been equated with MSME sector for the purpose of grant of incentives and concession under the industrial policy-2019.

• A very significant policy initiative to offset the logistics issues and cost disadvantage faced by the enterprises is the provision of reimbursement of the net State GST to the enterprises up to 90% for a period of 7 years.

• Himachal being a power surplus State, the policy encourages industrial development by providing concession on electricity duty for five years for various categories of industries.

• As some of the areas of the State are remote, the policy envisages transport subsidy for different types of investors up to Rs. 30 lakhs per annum .

• As the development cost in the State could be high in some areas owing to the hilly terrain, policy envisages concession on stamp duty and registration fee up to 90 % for enterprises. In most of the areas of the State, 100% exemption from payment of Change of Land Use has been allowed .

It is expected that the progressive and investor friendly concessions, facilities and incentives extended to the investors and entrepreneurs in the Pradesh through the 2019 industrial policy will lead to balanced, sustainable, all round and equitable development of the State and employment for all its people.
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