Himachal Pradesh 17-09-2019 Shimla · 2019-09-20 · 17-09-2019 Shimla Himachal Pradesh. Page 2 20 September 2019 Himachal Pradesh - an Overview ... Meeting with Mr Harsh Goenka,

20 September 2019Page 1

17-09-2019

Shimla

Himachal Pradesh


Himachal Pradesh - an Overview

► One of the fastest growing states in India

► GSDP of USD 21.69 bn in FY 2019

► GSDP growth rate at market price in FY 2019 - 11.2%

► Per Capita Income at current prices – USD 2528 in FY 2019

(National USD 1792)

► Per Capita Income registered a growth rate of 10% from

FY 2018 to FY 2019 (National growth 6%)

► Export of USD 1.2 bn in FY 2018 to 52 countries

► Export growth rate of 16% (FY 2018)

► Population (2011 census) – 6.9 Million/ National – 1.21 Billion

► Population Density – 123 per sq,kms/ National Average -

382 per sq,kms

► Literacy rate - 82.80/ National Average - 73.0

► Life expectancy – 71/ National average- 67.5

Himachal at a Glance

Economic IndicatorsUttar

Pradesh

Uttarakhand

Haryana

Punjab

Jammu &

Kashmir

Proximity to Consumer market

About 300 million (25% of India’s Population)

Delhi


Manufacturing & Pharmaceuticals

► State is having 50,000+ units employing more than 4 lakh people

(99% are MSME)

► Manufacturing growth rate - 12.5% (FY 19)

► 60 developed Industrial areas

► The State is known as pharmaceutical hub of Asia

► Meets 35% of demand in Asia

► 300 pharma companies

► Textile hub with total capacity of more than 600,000 spindles

► Cement hub owing to surplus limestone in the State

► Other areas of investment in manufacturing:

► Food Processing, FMCG, Auto & Light Engineering, Electronics,

Precision Tools

Sector Overview Key Players in the State


Himachal Pradesh - Industrial map

Manufacturing sectors

Engineering

Pharmaceuticals

Food Processing

Textile

Cement

Precision tools


Global Investors’ Meet --Focus Sectors

Hydro & Renewable Energy

Information Technology/ ITeS &

Electronics

Agri-business, Food Processing & Post

Harvest Technology

Tourism, Hospitality & Civil Aviation

Wellness, Healthcare & AYUSH

Education & Skill Development

Housing, Urban Development and

Infrastructure

Manufacturing and Pharmaceuticals


Why to invest in Himachal Pradesh?

Reasons to invest

► Reliable and affordable Power

► Good, transparent and effective Governance

► Availability of Skilled Manpower

► Congenial Industrial relations

► Fastest Moving State in Ease of Doing Business

► Salubrious Environment

► Fruit Bowl of the Country- Abundance of raw

material for Food Processing Industry

Strategies adopted for attracting investors

► Improving existing Policy- Industry, Tourism,

► Formulation of New Policy- Film, IT/ITeS, Food

processing, Electric Vehicle

► Process simplification and Online

approval/clearance –NOCs / EC /Approval U/S 118

► Held 3 International and 6 National Roadshows

► Identified land bank(1600 acres of Government

land, 618 acre private land) for investment projects


Progress Made so far

MoU Signing Ceremony on 25th Feb 2019 at Shimla CM Address at MoU Signing Ceremony on 25th Feb 19 at Shimla

► Held MOU signing ceremony on 25 Feb

► Three International Roadshows—Germany, Netherlands and UAE (Dubai)

► Six National Roadshows – Bangalore, Hyderabad, Mumbai, New Delhi,Ahmedabad and Chandigarh-------Ambassadors meet at New Delhi

► Mini conclaves at Manali and Shimla


International Roadshows

Frankfurt

Frankfurt

Dubai

DubaiNetherlands

Netherlands


Domestic Roadshow Bengaluru (30 January 2019)

✓ 15 B2G Meetings with prominent corporates like Wipro, Metro(Cash& Carry), Toyota Kirloskar Auto

Parts, TVS, Indo Nissin etc.

B2G Meeting in progress in Bengaluru Audience in the Roadshow


Domestic Roadshow Hyderabad (31 January 2019)

✓ 18 B2G Meetings with prominent corporates like Nagarjuna Construction Company Limited, Ramky

Enviro Engineers, Apollo Hospital Enterprises, Dr. Reddy Laboratories Ltd etc.

B2G Meeting in progress in Hyderabad Hon’ble Industries Minister address during the

roadshow


Domestic Roadshow Mumbai (27 – 28 June 2019)

Meeting with Mr Rattan Tata, Chairman, Tata Trusts Meeting with Mr Anand Mahindra, Chairman, Mahindra Group

Meeting with Mr Harsh Goenka, RPG Group Meeting with Mr Adi Godrej, Godrej Group


Domestic Roadshow Mumbai (27 – 28 June 2019)

Meeting with Mr Mukesh Ambani, Reliance Group Meeting with Mr Neeraj Akhoury, MD & CEO, ACC Ltd

✓ 10 B2G Meetings with prominent corporates like TATA Group, Reliance Industries, Mahindra Holidays

& Resorts, SKIL Infrastructure Ltd, Devagabond outdoor Pvt Ltd & Himalyan Bliss

✓ Signed 6 MoUs, with investment amounting INR 1020 Cr


Domestic Roadshow Delhi (10 July 2019)

B2G Meeting in progress in DelhiCurtain Raiser: meeting with the Ambassadors/ Representatives

of 60 Nations

✓ 16 B2G Meetings with prominent corporates like Field Fresh Food; GMR, OYO India, Trans Metalite

India, Virgo Group, Renew Power, Ski Himalayas Ropeway, Jaipuria schools, Satya developers,

Munjal Auto, Dr Path Labs



Domestic Roadshow Ahmedabad (12 July 2019)

✓ 16 B2G Meetings with prominent corporates like Gujrat Ambuja Exports; JJ PV Solar Private Limited;

Blue Ray Aviation Private Limited; Centaur Energy; Creative Choice Group; Ultracab India Limited;

& Chandresh Cables


B2G Meeting in progress in AhmedabadMoU Exchange between corporate and State

Government


Domestic Roadshow Chandigarh (13 August 2019)

✓ 15 B2G Meetings with prominent corporates like Dalmai Cement, Newzen Starch LLP, HRD Agro Pvt,

Aishwarya Lifescience, Sukhjit Starch & Chemicals Ltd, Sushma Builders etc.


B2G Meeting in progress in Chandigarh B2G Meeting in progress in Chandigarh


Mini Conclave Manali (11 September 2019)


➢ Prominent corporates like Usha Breco limited, Celestial Hotel, Kaavi hotels and resorts Pvt limited, Baragarh

resort and SPA etc. attended the mini conclave in Manali

➢ Attracted investment intent worth INR 42,000 Crore till date through 459+ MoUs across 8 focus

sectors

➢ All MoUs are monitored through online Him Pragati Portal

Signing of MOU during the Mini Conclave Signing of MOU during the Mini Conclave


Special Incentive Scheme of GoI#

Incentives Details

1 Central Capital Investment

Incentive for access to

credit (CCIIAC)

➢ All eligible new industrial units and existing industrial units on their

substantial expansion in manufacturing and service sector anywhere

in Himachal Pradesh

➢ Central Capital Investment Incentive for access of credit @ 30% of

the investment in plant and machinery with an upper limit of Rs.5.00

crore.

2 Central Comprehensive

Insurance Incentive (CCII) ➢ All eligible new industrial units and existing industrial units on their

substantial expansion in Himachal Pradesh will be eligible for

reimbursement of 100% insurance premium on insurance of building

and Plant & Machinery for a maximum period of 5 years


Key Incentives Industrial Investment Policy - 2019

Category of Enterprise

MSMEManufacturing Sector* - up to INR 10 Crores

Service Sector# - up to INR 5 Crores

LargeManufacturing Sector* – Above INR 10 Crores

Service Sector# – Above INR 5 Crores

AnchorFixed Capital Investment of more than INR 200 Crores & employing more

than 200 Bonafide Himachalis on regular basis

Investment in *Plant & Machinery, # Equipment

Regional Categorization

Category A Industrial developed areas of the State

Category B Intermediate areas or industrially developing areas of the State

Category CTribal areas, industrially backward development blocks and backward panchayats of the State


Key Incentives For MSMEs# Parameters Category A Category B Category C Details

1 Allotment of Land and Industrial Sheds

Concession of 50% of rate /premium

Concession of 60% of rate /premium fixed for land or Industrial sheds

Concession of 70% of rate /premium fixed for land or Industrial sheds

➢ Concession will be given to enterprises who start there commercial production within 2 years of handing over the possession of land or within a period of 1 year of handing over possession of industrial sheds

2 Net SGSTReimbursement

Reimbursement of 50% of NET SGST paid to GoHP

Reimbursement of 80% NET SGST paid to GoHP

Reimbursement of 90% Net SGST paid to GoHP

➢ Reimbursement period is of 7 years ➢ Maximum of 80% of the Fixed Capital

Investment(FCI)

3 Interest Subvention Maximum upto 2 lakh

Maximum upto 4 Lakh

Maximum upto 6 Lakh

➢ 3% on term loan ➢ Reimbursement period is of 3 years

4 Transport Subsidy Not applicable

3% of annual turnover or Maximum of 10 lakhs per annum for 3 years

5% of annual turnover or maximum of 10 lakhs per annum for 5 years

➢ Reimbursement on actual expenditure incurred on transportation of raw material & finished products for B& C category

5 Stamp Duty and registration fees

50% of applicable rates



➢ Concessional rate on instrument of Conveyance deed or lease deed


Key Incentives For MSMEs

# Parameters Details

6 Self Certification ➢ Enterprise after obtaining the tile of land may start physical implementation of projects

7 Preparation of Detailed Project Report & Obtaining certification

➢ Reimbursement of 50% of expenditure incurred towards the cost paid to the consultant for preparation of DPR, certification/ valuation of value of Technical Civil work or investment in Plant and Machinery

8 Provisions of extension in provisional allotment period

➢ The land/ plot will be provisionally allotted for a period of two yearsfrom the date of handing over of the possession. However period of the

provisional allotment can be extended upto 5 years from the date of handing over possession by charging nominal extension fee

9 Easy Payment schedule of land ➢12% of the premium of land/ shed shall be realized before handingover of possession and balance in 8 equal annual interest freeinstalments.

10 Concession on Electricity Duty ➢ 1% for 5 years and thereafter as per applicable prevailing rates for Small Industrial Consumers

➢ 3% for 5 years and thereafter as per applicable prevailing rates for Medium Industrial Consumers

11 Concessional rate of Electricity charges

➢ For New Enterprises, Energy Charges @ 15% lower than the approved Energy Charges for a period of 3 years

➢ For Existing Enterprise, rebate @ 15% on Energy Charges for additional power consumption beyond the preceding financial year

Page 21 20 September 2019

Key Incentives for Large & Anchor units

Allotment of Land at Concessional Rate (A, B & C)

Rebate on Payment of Stamp Duty and Registration Fee

Reimbursement of Net State Goods and Service Tax

Large Concession of 25%-65% of rate / premium fixed (commences production

within 3 years)

Anchor Concession of 50% to 75% of premium fixed (commences production

within 3 years)

Large20% to 50% of the applicable rates in Category A, B & C areas on instrument of conveyance or lease deed

Anchor

Large 50%-80% of SGST paid up to 80% of FCI for a period of 5 years

Anchor Net SGST reimbursement up to 80% of FCI for a period of 7 years

FCI - Fixed Capital Investment



Interest Subvention for period of 3 Years in Category A, B & C

Concessional rate of electricity charges

Transport Subsidy on Raw Material and Finished Products within the state

Large@ 3%, on term loan subject to a max of Rs. 10, 15 and 20 lakhs per annum for

a period of 3 years

Large • For New Enterprises, Energy Charges @ 15% lower than the approved Energy Charges for a period of 3 years

• For Existing Enterprise, rebate @ 15% on Energy Charges for additional power consumption beyond the preceding financial year

Anchor

LargeReimbursement @ 3% to 5% of annual turnover for a period of 3 to 5 years (Category B & C only) subject to maximum of Rs. 10 to 30 lakhs per annum

Anchor@ 5% of annual turnover for a period of 5 years subject to maximum of Rs.30 lakhs per annum



Capital Infrastructure for Industrial Parks

Capital Infrastructure for Sector Specific Theme Parks

Capital Infrastructure Subsidy @ 40% subject to maximum of Rs.10, 15 & 20 Crore for parks set up in Category A, B & C areas respectively

Capital Infrastructure Subsidy of the cost incurred for the development of common industrial infrastructure & utilities @ 25%, 40% & 50% subject to max of Rs.15, 20 & 25 Crore in Category A, B & C respectively

Incentives for SpecialCategory of Entrepreneurs

Special Category of Entrepreneurs are entitled to avail following additional incentives


Agri-Business and Food Processing

► Himachal Pradesh is known as fruit & vegetable bowl of

India

► Ideal ecosystem and climate for organic production

► Handpicked fruits and vegetables grown in clean and

green environment

► Existence of horticulture and agricultural universities

and Institutes throughout the State like CPRI, Mushroom

Research institute

► Adequate supporting infrastructure for food processing

such as 22 designated food parks, 1 Mega food park,

18 cold chain etc.

Key Players in the State

Setting up of Industrial Units


Assistance under PMKSY Scheme of MOFPI, GoI

S.NO Scheme Quantum of Assistance

1 Creation/ Expansion of Food Processing/ Preservation Capacities

➢ Grant-in-aid @50% of eligible project cost subject to max. of Rs. 5.00crore per project for Himachal Pradesh

➢ The grant is provided only in respect of technical civil work and eligibleplant & machinery.

2 Creation of Backward and Forward Linkages

➢ The maximum grant extended per project is Rs 5.00 crore @ 50% of theeligible project cost for Himachal Pradesh

➢ The grant is provided only in respect of technical civil work and eligibleplant & machinery.

3 Agro Processing Cluster ➢ Clusters under the scheme have two basic components i.e. Basic Enabling Infrastructure (roads, water supply, power supply, drainage, ETP etc.), • Core Infrastructure/ Common facilities (ware houses, cold storages, IQF,

tetra pack, sorting, grading etc)• At least 5 food processing units with a minimum investment of Rs. 25

crore required, the units are set up simultaneous along with creation of common infrastructure.

• At least 10 acres of land is required to be arranged either by purchase or on lease for at least 50 years

Grants-in-aid @ 50% of eligible project cost in general areas subject to max. of Rs. 10.00 crore per project.


Assistance under PMKSY Scheme of MOFPI, GoI

S.NO Scheme Quantum of Assistance

4 Mega Food Park ➢ Capital grant @75% (Maximum Rs 50Cr

➢ Minimum 50 Acres of land

➢ Eligible Components

➢ Factory building

➢ Central Processing clusters

➢ Primary processing and farm proximate collection centres

5 Integrated Cold Chain & ValueAddition Infrastructure

Financial Assistance limited to max. Rs. 10 Cr. per project (Technical civil

works & P/M)

1. For storage infrastructure including Pack House and Pre-cooling unit,

ripening chamber and transport infrastructure, grant-in-aid @ 50% for

Himalayan States, of the total cost of plant & machinery and technical civil

works

2. For value addition and processing infrastructure including frozen storage/

deep freezers associated and integral to the processing, grant-in-aid @ 75%

for Himalayan States

3. For irradiation facilities grant-in-aid will be provided @ 75% for Himalayan

States


State Mission on Food Processing

Sr. No Scheme Grant-in-aid Maximum limit Eligible Sector

1 Technology Up-gradation/Establishment /Modernization of FPIs(Cost of Plant &Machinery & TechnicalCivil Works)

33.33% Max INR 75 Lakhs Food processing sectors like fruits & vegetables,milk/ meat/poultry/fish products, cereal/ otherconsumer food products, rice/flour/pulse/ oil millingand such other agri/horti/sectors including foodflavours, colours, oleoresins, spices, coconut,mushrooms, wines and hops

2 Cold Chain for Non-Horticulture products

50% Max. Rs. 5.00 Crore.Interest subvention @ 7% per year subject to max of Rs. 25.00 lakh per years for 7 years

Following sectors may be covered under the scheme:

(a) Dairy-All milk and milk products, etc.

(b) Meat- All meat and meat products etc.

(c) Aquaculture and marine products like Prawns,

Seafood, Fish, and their processed products etc.

(d) Any other non-horticultural food products

requiring integrated cold chain

3 Scheme for Creatingprimary ProcessingCenters /CollectionCenters in Rural Areas

75% Max. Rs. 2.50 Cr. The Scheme is applicable to both horticulture andnon-horticulture produce such as fruits, vegetables,grains & pulses, dairy products, meat , poultry andfish etc.


State Mission on Food Processing

Sr. No Scheme Grant-in-

aid

Maximum limit Eligible Sector

4 Modernization of

Meat Shops

75% Max. Rs. 5.0 lakhs All implementing agencies/organizations such as

Government/PSUs/ Joint Ventures/

NGOs/Cooperatives/SHGs/ Private Sector/

Individuals engaged in the operations of meat

shops would be eligible for financial assistance

under the scheme.

5 Reefer Vehicles 50% Max. Rs. 50 lakhs 1. The assistance will be available to the individual

entrepreneurs, partnership firms, registered societies ,

co-operatives, NGOs, SHGs, Companies and

Corporations etc.

2. The applicant / beneficiary should have sound

financial back ground and the Projects necessarily

be supported by Bank/ FIs by way of term loan.


Investment opportunities

Ample opportunities for establishment of fruits & vegetable processing plant

because of high production and inadequate processing facilities

Suitable climate for the growth of variety of Mushroom generates opportunities in

Mushroom processing

The demand for cattle and poultry feed is growing up substantially with the

increase in cross bred population

Good potential and environment to set up dairy production units to meet the local

demand

Adequate raw material for setting up processing units for Peas, Tomato, Exotic fruits

and vegetables

Huge opportunities in fisheries related projects

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Rising Himachal – Website and Mobile app

Website – www.risinghimachal.in

Important information on website: Details about incentives, focussectors, investible projects, event announcements and schedule,registration for summit etc.

Mobile Application: Available in Google play and Apple Store(iOS)

http://www.risinghimachal.in/


You all are Cordially invited

Dharamshala

Global Investors’ Meet

at

Dharamshala

Himachal Pradesh

on

7th - 8th November 2019

Himachal Pradesh

Contact Us:

Mr Hans Raj Sharma,

Director, Industries

Mob: +91- 98055-05507

Email: [email protected]

Mr Abid Hussain Sadiq,

Special Secretary, Industries

Mob: +91-70185-28289


Knowledge Partner - EY

Mr. Navreet Singh Beling

Mob: +91-87188-05524


mailto:[email protected]



Documents

Himachal Pradesh 17-09-2019 Shimla · 2019-09-20 · 17-09-2019 Shimla Himachal Pradesh. Page 2 20 September 2019 Himachal Pradesh - an Overview ... Meeting with Mr Harsh Goenka,