New Delhi: The Cabinet on Wednesday approved additional allocation of Rs 1,164.53 crore for an industrial development scheme 2017 for Himachal Pradesh and Uttarakhand.
The additional fund was required to meet the committed liabilities under the scheme up to 2028-29.
Under this scheme, the total financial outlay was Rs 131.90 crore, Union Minister Anurag Thakur told reporters here.
The decision in this regard was taken in the meeting of Union Cabinet, chaired by Prime Minister Narendra Modi.
The cabinet has approved the central sector industrial development scheme 2017 (IDS, 2017) for Himachal Pradesh and Uttarakhand for additional fund requirement to meet the committed liabilities under the scheme up to 2028-29.
The requirement of an additional fund to meet the committed liabilities up to 2028-2029 is Rs 1,164.53 crore.
Thakur said that 774 units were registered under the scheme and the additional fund will go to them.
The government provides incentives under the scheme to companies for investment in these two states.
The incentives include access to credit and insurance.
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.
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.
The financial outlay of IDS, 2017 for Himachal Pradesh and Uttarakhand was only Rs 131.90 crore, which was released during 2021-2022.