Himachal firms seek clarification on subsidy scheme

Around 149-odd industrial units located in Himachal Pradesh are awaiting release of funds under the Central Capital Investment Subsidy.

The industrialists in the state alleged, with confusion prevailing regarding implementation of the subsidy, release of funds under the scheme was getting delayed.

The investment subsidy notified in 2003 is applicable for units which come into production till 2013. According to the incentive, new industries in the notified location would be eligible for capital investment subsidy at the rate of 15 per cent of their investment in plant and machinery, subject to a ceiling of Rs 30 lakh. The existing units would also be entitled to this subsidy on their substantial expansion, as defined.

According to Himachal Pradesh State Industrial Development Corporation (HPSIDC) officials, till now Rs 83.07 crore have been released to 596 units under this scheme. Around 149 companies are still awaiting release of funds, which amounts to Rs 26.80 crore.

Members of Baddi Barotiwala Nalagarh Industries Association (BBNIA) rue there is some want of clarification regarding implementation of the scheme.

“At present no subsidy is being given for the second or more units of the same company for want of clarification and as such some cases are pending for sanction and many more are in the process of setting up their second or more units,” industry sources said.

BBNIA is planning to take up the matter with Union Commerce and Industry Minister Anand Sharma who would be interacting with the industrialists of the state on May 7.They are demanding necessary clarification if central subsidy on investment is applicable to the second or more units of the same company. Also BBNIA is demanding timely disbursement of Central subsidy on investment, and higher amount be allocated in favour of the state.