The Union Cabinet on 06 September, 2023 approved funds of Rs 1,164.53 crore for Industrial Development Scheme (IDS), 2017 for Himachal Pradesh and Uttarakhand. Through this, the additional outlay will meet committed liabilities of Rs 1,164.53 crore under the scheme up to 2028-29.

Under the scheme, Central Capital Investment Incentive for Access to Credit (CCIIAC) will be provided to all eligible and existing industrial units in the manufacturing and service sector on their substantial expansion located anywhere in Himachal Pradesh and Uttarakhand. The incentive will be provided at 30 percent of the investment in plant and machinery with an upper limit of Rs five crore.

For the scheme announced in 2018, the total financial outlay of Rs 131.90 crore was allocated, and the fund was exhausted during FY22, which led to the need for additional fund requirement. This was proposed by the Ministry of Commerce and Industry, Department for Promotion of Industry and Internal Trade for Central Sector Scheme.

These units are also eligible for the reimbursement of 100 percent insurance premium on insurance of building and plant & machinery for a maximum period of five years from the date of commencement of commercial production/operation.

The scheme is expected to generate direct employment opportunities for about 48,607 people by 774 registered units.