Himachal set to get industrial package extension,announcement after bypoll

Sources said this move comes after a meeting of Chief Minister Virbhadra Singh and Industry Minister Mukesh Agnihtori with Union Minister for Commerce and Industry Anand Sharma in New Delhi in March. Sharma had entrusted the matter to top officials to work on restoring incentives to the state for new investments.

“We have learnt that Himachal Pradesh’s case has been cleared. The announcement for extension of special package has already been made for Jammu & Kashmir for five years till 2017. There is something on the cards for the state also,” said Agnihotri,adding a formal announcement will be made after the bypoll.

The incentives under the special package include a capital investment subsidy at the rate of 15 per cent of investment in plant and machinery subject to a ceiling of Rs 30 lakh.

During the package period in Himachal Pradesh,the state had received of Rs 13,000 crore but it lost a proposed investment of Rs 35,000 crore as there was uncertainty over the package period . During past five years,3,835 industrial units were set up in HP,while 215 industrial units faced closures.

Agnihotri said on the basis of arguments extended by the state,the Central government has agreed in principle to enhance period of this package.

The package was sanctioned by the NDA government at the behest of then chief minister Prem Kumar Dhumal in 2003 but the Congress-led UPA government,facing pressure from the adjoining states of Punjab and Haryana,had curtailed the package to 2007. Later,it extended it till 2010 and not 2013 as was initially proposed.