Uttarakhand CM focuses on small units

At a time when Uttarakhand is offering a mega industrial policy, new Chief Minister Harish Rawat is focusing on micro, small and medium enterprises (MSMEs).

"I am not focusing on industrialisation. My entire focus will be on saving the precious ecology of the hill state and promoting small, employment-oriented units, particularly in the tourism sector in the hills," Rawat told Business Standard.

By the time the Centre extended the package of hill-based incentives in 2003, the process of industrialisation had taken a big leap, and states such as Punjab, Uttar Pradesh, Bihar, Gujarat and Haryana began opposing the tax incentives. Finally, the Centre curtailed the package to seven years.

After the expiry of two major components of the package - excise and income tax concessions - industrialisation in the hill state slowed down, although the overall economic downturn also contributed. The new schemes being launched by the government have been devised to help those who were affected by last June's deluge in the hills.

The government has decided to develop 100 mini industrial estates - 70 in the hill areas and 30 in the plains. The government is offering a series of incentives under the hill promotion policy to boost the MSME sector.

It will also shortly launch a scheme where it will provide 33 per cent of the capital subsidy, up to a maximum of Rs 15 lakh, to those who want to start new ventures, especially in the tourism sector. A decision to this effect has already been taken by the state cabinet.

The scheme will remain effective for the next five years in the five disaster-affected districts of Rudraprayag, Chamoli, Pithoragarh, Uttarkashi and Bageshwar. A committee will be set up under the chairmanship of the respective district magistrates to select candidates under the scheme.

A special chief minister's livelihood scheme for women has been planned. In the first phase, 1,500 women will be identified and will be provided economic security. Under the scheme, the government will provide the women - who will be paid a stipend of Rs 1,000 - with training in starting new ventures. A grant of Rs 50,000 will also be provided to all women who want to become self-employed.

A separate village cluster tourism scheme will also be launched shortly, where a group of villages will be provided a grant with a maximum limit of Rs 2 crore for strengthening infrastructure facilities. In a similar scheme where individuals want to start an innovative tourism venture in the village, they can also get a loan for this purpose. For the first two years, such a loan will be totally interest-free and in the next two to four years, only four per cent interest will be charged.

"In all such schemes, the budgetary provision will be made from the state government's funds," said A K Dwivedi, joint director, tourism department.

In another move, the chief minister has launched an initiative to revive local arts like wood carving and copper works in the hill areas by setting up an institute in Bageshwar district to train artisans.