State Industrial Development Corporation of Uttarakhand

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State Industrial Development Corporation of Uttaranchal Limited
Founded 2002
Headquarters Dehradun
Area served Uttarakhand
Owners Government of Uttarakhand
Website www.sidcul.com/sidculweb/home.aspx

The State Industrial Development Corporation of Uttarakhand Limited (SIDCUL) is a government of Uttarakhand enterprise[1] which promotes industries and develops industrial infrastructure in the State. It also provides tax incentives for companies establishing plants on its industrial estates presently at Haridwar, Pantnagar and Sitarganj.[2][3]

History[edit]

It was incorporated as a Limited Company in the year 2002 with an authorised share capital of Rs. 50 crores and Rs. 20 crores paid up capital through Government of Uttarakhand in order to promote Industrial development in the State, provide financial assistance in the shape of debt, equity, venture capital, develop infrastructure and assist private initiative in Industry and Infrastructure and implement, manage projects and provide specialized financial, consultancy and construction and all such other activities to promote industries and develop Industrial Infrastructure in the State of Uttarakhand directly or through Special Purpose Vehicles, Joint Ventures, assisted companies etc.

Besides the State Government, SIDCUL has equity participation from UBI[disambiguation needed], OBC and SIDBI. Other banks are also in the process of participating in its equity. This has led to a high degree of professionalism and autonomy in the functioning of the Corporation. The spate of concessions available for Industrial ventures in Uttarakhand along with the proactive government and facilitative environment has led to more than a thousand EOI’s with SIDCUL, which entail an investment of around Rs. 20,000 crores.

Infrastructure developed by SIDCUL[edit]

Fiscal Advantage[edit]

1. 100% Income Tax exemption for first 5 years and 30% for next 5 years for the Companies and 25% for others which comes in production by 31 March 2012.

2. Capital Investment Subsidy @15% with maximum of Rs. 30 Lakhs (Rs. 3 million) which companies comes in production by 31 March 2013.

3. Exemption from entry tax on Plant & Machinery for setting up Industry or undertaking substantial expansion and modernization

4. Land use conversion and development charges and regime will be rationalized

5. Stamp duty concession will be provided in respect of land in specialized commodity parks, including I.T. parks

6. Interest incentive @ 3% with a maximum of Rs. 2 Lakhs per annum per unit shall be provided to New Small Scale Industries (SSIs) and existing SSIs for modernization and substantial expansion, provided they have available loan from State level Financial Institutions or Banks operating in Uttarakhand and not defaulted in payment of principal or interest installments. However, for S.S.I. units and units notified as Thrust Industries being set up in remote areas, the interest incentive shall be granted @ 5% with a maximum of Rs. 3 Lakhs/annum. The interest incentives shall be admissible to the unit only if it remains in operation for last installment, failing which the Government will have the right to recover the amount of incentive availed.

7. For the purpose of Interest Incentive, Substantial Expansion shall mean additional investment of not less than 25% of the underpreciated book value of plant and machinery of an industrial unit

8. For the purpose of the Interest incentive, modernization of new existing Industrial units means additional investment to the extent of 25% of the underpreciated book value of plant and machinery, made in acquisition of plant and machinery and technical know-how for such modernization

9. For revival/rehabilitation of sick SSI units, interest incentive @ 3% with a maximum of Rs. 2 Lakhs per annum shall be provided on the loan taken under fully tied up revival and rehabilitation package from financial institutions, banks etc. For entrepreneurs in remote areas the interest incentive will be granted @ 5% with a maximum of Rs. 3 Lakhs per annum. The interest incentive shall be admissible to the units only if it remains in operation for minimum of 3 years from the date of date of disbursement of last installment, failing which Government will have the right to recover the entire amount of incentive availed

10.In the case of sick non-SSI units, Government will sympathetically consider measures required under revival/rehabilitation package drawn by Operating Agency/Financial Institutions/Banks

11. 100% exemption on Entertainment tax will be allowed for Multiplex project in the State for period of three years, and for all new amusement parks and ropeways for five years.

12. 75% of the Total Expenditure subject to a maximum of Rs. 2 Lakhs incurred in obtaining national/internationally approved quality marks such as ISO series certificate etc., shall be reimbursed to the entrepreneurs provided that the reimbursement/grant availed for this from all sources should not exceed the total expenditure on this head

13. 50% of the expenses subject to a maximum of Rs. 1 Lakhs incurred in installing pollution control equipments shall be reimbursed to the entrepreneurs, provided that the total reimbursement/grant availed for this from all sources should not exceed the total expenditure on this head.

14. 75% of the cost subject to a maximum of Rs. 2 Lakhs shall be made available to the entrepreneurs in the shape of assistance for registering their patents, provided that the total reimbursement/grant availed for this from all sources should not exceed the total expenditure on this head.

15. For educated unemployed youth, financial loan assistance for project up to Rs. 2 Lakhs in case of Manufacturing/Services Industry and project up to Rs. 1 Lakhs in business sector shall be available under the “PRIME MINISTER ROZGAR YOJNA” with subsidy of 15% of the project cost subject to a maximum of Rs. 15,000. Age limit has also been relaxed under this scheme from 35 years to 40 years

16. Industries generating employment opportunities shall be encouraged

17. Purchase preference and price preference will be given to State SSIs in State purchases

18.Purchase preference shall be accorded to Non-SSI units within the State vis-à-vis units outside the State

19.Matching State subsidy on approved projects of National Horticulture Board (NHB), Agriculture & Processed Food Products Export Development Authority (APEDA), National Medicinal Plants Board (NMPB) subject to a maximum of Rs. 20 Lakhs and subject to a total subsidy not exceeding over 50% of the project cost.

References[edit]

  1. ^ "The 2 billion dollar boom town". Rediff.com. 16 December 2006. Retrieved 24 October 2010. 
  2. ^ "Hindustan Zinc to set up unit in Uttarakhand". Mint. 19 September 2007. Retrieved 24 October 2010. 
  3. ^ About SIDCUL

External links[edit]