On October 8, 2024, the Department of Industries, Government of Himachal Pradesh, issued a notification to amend the Himachal Pradesh Industrial Investment Policy 2018 and the Rules Regarding Grant of Incentives, Concessions, and Facilities for Investment Promotion in Himachal Pradesh 2019. These changes are designed to enhance the sustainability and commercial viability of the upcoming Medical Devices Park in Una.
Key Amendments
1. Industrial Investment Policy 2019:
- Incentives for MSMEs:
- A new provision will grant a 10% concession on the rate/premium fixed for land to MSME enterprises in the Medical Devices Park, provided they commence commercial production within two years.
- Payment Structure:
- 25% of the land premium must be paid before possession is handed over. The remaining 75% will be paid in three annual installments over the next three years.
- If an allottee opts to pay the remaining premium in a lump sum after starting production, they will receive a 10% rebate on the balance premium.
2. Rules Regarding Grant of Incentives 2019:
- Extension of Provisional Allotment:
- The period for provisional allotment can be extended by one year at a time, with a maximum of five years for MSMEs and six years for large and anchor enterprises, provided all premiums due are paid.
- Extension fees of 10%, 15%, and 20% of the total premium will be charged for the first, second, and third extensions, respectively. There will be no fee for the first extension if the delay in production is beyond the allotee’s control.
- Transfer of Leasehold Rights:
- Transfers of leasehold rights will be permitted under specific conditions, including payment of the balance premium and unearned increase in premium:
- 20% (50% for Medical Devices Park) of unearned premium for enterprises not set up or in production for less than one year.
- 10% (20% for Medical Devices Park) for those in production for more than one year but less than five years.
- 5% (10% for Medical Devices Park) for enterprises in production for a minimum of five years.
- Transfers of leasehold rights will be permitted under specific conditions, including payment of the balance premium and unearned increase in premium:
