The Himachal government has formulated an industrial policy to accelerate the growth of industrial sector that currently contributes about 15 per cent to the state domestic produce.

The new industrial policy focuses on ensuring inter-sectoral co-ordination and planned industrial development throughout the state. Similarly new areas such as agro-horticulture produce-based industries, local resources-based industry have been identified to ensure balanced industrial development and encouraging local enterprise

Special economic zones (SEZs) are being set up in Kangra, Una and other districts of the state at an estimate cost of over Rs.5,000 crore.

The policy also focuses on various fiscal incentives available to industrial units in the form of subsidies: concessional rate of electricity duty and deferment of the VAT depending on their locations. All eight tribal development blocks, 15 other backward blocks and all backward panchayats of the state have been included in "C" category area. They have been declared as tax free zone and units located in these areas are exempted from payment of VAT and other levies for a period of 10 years. Sirmaur and Solan districts have been put in "A" block, where industries will be entitled to deferment of VAT for a period of 5 years.

(Note: ProjectsToday is in the process of obtaining the official Industrial Policy, which would be subsequently hosted on www.projectstoday.com)