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Sector IT and BPM
State Uttarakhand
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Overview

Promoting Uttarakhand as an attractive investment destination for IT companies by providing congenial, industry friendly and proactive working environment. Promote prominent cities/towns in the state as emerging IT destination by aiding in setting up state of the art infrastructure in the state. This would be achieved by providing Single Window Assistance within the state. This policy focus on world class IT infrastructure as a platform to provide seamless connectivity for business and users, easy to use public and private services in a vibrant ecosystem consisting of ICT operators, Services Providers, Government, Regulators and end users.

Categorization as prescribed under MSME Policy 2015 (as amended 2016, 2018 & 2019)

Category A:

  • Whole Districts of Pithoragrah, Uttarkashi, Chamoli, Champawat, Rudraprayag   and Bageshwar

Category B: 

  • Whole District of Almora,
  • All hilly development blocks of District Pauri Garhwal, Tehri Garhwal (Excluding regions under category B+),
  • All hilly development blocks of District Nainital and Dehradun (Excluding regions under category B+)

Category B+:

  • Kotdwar, Sigaddi and adjoining plain regions of Dugadda development block of district Pauri Garhwal
  • Dhalwala, Muni Ki Reti, Tapovan and adjoining plain regions of Fakot development block of District Tehri Garhwal
  • Kotabagh development block of District Nainital
  • Plain regions of Kalsi development block of District Dehradun

Category C:

  • Regions located above 650 meters from sea level in Raipur, Sahaspur, Vikasnagar and Doiwala development blocks of District Dehradun
  • Ramnagar and Haldwani development blocks of District Nainital

Category D:

  • Whole Districts of Haridwar and Udham Singh Nagar
  • Remaining area of District Dehradun and Nainital (which are not included in category ‘B’, ‘B+’ and ‘C’)

Industry Definitions:

Micro – up to INR 25 lakh for Manufacturing / up to INR 10 lakh for Services

Small - INR 25 lakh to INR 5 Cr for Manufacturing / INR 10 lakh to INR 2 Cr for Services

Medium - up to INR 5-10 Cr for Manufacturing / up to INR 2-5 Cr for Services

Heavy - INR 10-50 Cr for Manufacturing / INR 5-50 Cr for Services

Large - INR 50-75 Cr for Manufacturing / Services

Mega - INR 75-200 Cr for Manufacturing / Services

Ultra-Mega - above INR 200 Cr for Manufacturing / Services

Super Ultra-Mega – Investments above INR 400 Cr with employment generation of minimum 400 people

Invest Uttarakhand

State Incentives

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  • One-Time Incentives
  • Recurring Incentives
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Land Cost Rebate
  • Land Rates Rebate under Mega Industrial and Investment Policy 2015
    • Large – Rebate of 15%, on SIIDCUL prevailing land rate
    • Mega – Rebate of 25%, on SIIDCUL prevailing land rate
    • Ultra-Mega – Rebate of 30%, on SIIDCUL prevailing land rate
Fixed Capital Rebate
  • Capital Subsidy - Under MSME Policy 2015 (As Amended in 2019)
    • Category A: 40% (Max up to INR 40 Lakh)
    • Category B, B+: 35% (Max up to INR 35 Lakh)
    • Category C: 30% (Max up to INR 30 Lakh)
    • Category D: 15% (Max up to INR 15 Lakh)

*Capital Subsidy will be applicable on the fixed investment in factory building, plant & machinery

  • Special Incentive Scheme for Women Entrepreneurs
    • Capital Subsidy - Capital investment subsidy of 25% up to a maximum of INR 25 Lakh

*Applicable across the state for both Manufacturing and Services sector

Stamp Duty Exemption
  • MSME Policy 2015 (As Amended in 2019)
    • Category A, B, B+, C: 100% exemption
    • Category D: 50% exemption
  • Mega Industrial and Investment Policy 2015
    • 50% exemption on Stamp duty for Large, Mega, Ultra Mega and Super Ultra Mega
Other Incentives
  • Subsidy for Rural BPOs – BPOs that received incentives under IBPS (India BPO Promotion scheme – MietY) would be eligible to receive an additional one-time incentive of up to INR 1.0 Lac per BPO. The said incentive will be released in the two instalments. 50% of the incentive will be released after 1 year of the commencement 
  • Patent Filling Cost Reimbursement – 100% of actual filling costs on awarded patents, subject to a maximum of INR 2 Lac for domestic patents and INR 5 Lac for international patents as one-time Incentive. (Only for Companies having their HQs in Uttarakhand)
  • ETP Subsidy
    • Heavy Industrial Investment and Employment Promotion Policy 2018 - 30% up to a maximum of INR 20 Lakhs
    • Mega Industrial and Investment Policy 2015 - 30% up to a maximum of INR 50 Lakhs
  • Land Registration Fees under Mega Industrial and Investment Policy 2015
    • Land registration fee @INR 1/- per INR 1000/-
SGST Reimbursement
  • SGST Concession - Under MSME Policy 2015 (As Amended in 2019)
    • Category A:100% for the first 5 years and 90% thereafter
    • Category B, B+: 100% for the first 5 years and 75% thereafter

*The SGST after adjustment of ITC on sale of finished product (B2C) will be reimbursed from the date of commencement of production of the unit for 5 years

*Only manufacturing units are eligible to avail SGST Reimbursement

  • SGST Concession under Mega Industrial and Investment Policy 2015
    • Large: 30%
    • Mega / Ultra Mega/ Super Ultra Mega: 50%

*The SGST after adjustment of ITC on sale of finished product (B2C) will be reimbursed from the date of commencement of production of the unit for 5 years

Interest Cost Subvention
  • Interest Subsidy under MSME Policy 2015 (As Amended in 2019), Per Year/ Unit (Only on term Loan)
    • Category A: - 10% (Max up to INR 8 Lakh)
    • Category B, B+: - 8% (Max up to INR 6 Lakh)
    • Category C: - 6% (Max up to INR 4 Lakh)
    • Category D: - 5% (Max up to INR 3 Lakh)
  • Interest Subsidy under Mega Industrial and Investment Policy 2015
    • Large– 7% for 5 years INR 25 Lakhs Max for per year
    • Mega– 7% for 5 years INR 35 Lakhs Max for per year
    • Ultra-Mega– 7% for 5 years INR 50 Lakhs Max for per year
    • Super Ultra Mega– 7% for 5 years INR 50 Lakhs Max for per year
Power Tariff Rebate
  • Power Bill Rebate under MSME Policy 2015 (As Amended in 2019)
    • Category A: Sanctioned Load up to 100   KVA: 100% for 5 years and 75% thereafter; If Load>100 KVA:  60%
    • Category B, B+:  Sanctioned Load up to 100 KVA: 100% for 5 years and 60% thereafter; If Load>100 KVA:  50%
  • Power Assistance under Mega Industrial and Investment Policy 2015
    • Reimbursement of INR 1/- per unit on the electricity bill for 5 years from the date of start of commercial production and 100% reimbursement on electric duty for 7 years
      • Large – Max INR 50 Lakhs/ Year
      • Mega – Max INR 75 Lakhs / Year
      • Ultra-Mega – Max INR 1 Cr/ Year
      • Super Ultra Mega – Max INR 1.50 Cr / year

*Power Assistance and Reimbursement of Electricity Duty will not be applicable for units falling under the category of Hotels & Resorts under the Mega Industrial & Investment Policy,

Electricity Duty Rebate
  • Electric duty payable / paid on the electricity bill consumed in production work will be reimbursed 100 percent to eligible enterprises (Large, Mega, Ultra Mega and Super Ultra Mega) under Mega Industrial and Investment Policy 2015
Other Incentives
  • Transport Subsidy under MSME Policy 2015 (As Amended in 2019) - % of Annual Turnover (Per year/ unit) or Inbound/ Outbound Logistics Cost whichever is less
    • Category A: 7%
    • Category B: 5% 
    • Category B+: 5%

(Max INR 5 Lakh), or actual transportation cost, whichever less*

Only manufacturing units are eligible to avail Transport Subsidy

  • Rebates on Lease /Rental Spaces – Reimbursement up to 25% of lease / rental charges for the space for MSME IT/ ITeS units and incubates established in the state operating from leased / rented space in IT cities / IT Parks or any notified location, will be eligible with maximum limit of INR 10 lakhs per years, for a period of 3 years for MSME IT / ITeS units and for a period of 5 Years for incubates from the date of commencement of commercial operations.
  • Subsidy for BPO with Woman Employees- BPO that receive incentives under IBPS (India BPO Promotion scheme-Miety) in addition to above incentive the BPO is eligible to get an incentive as reimbursement on lease rentals up to 50% of the total seat employed by women for the given years with maximum limit of maximum INR 50000 on continuous basis for first 3 years only.
  • Special State Transport Subsidy – Maximum 7% of Annual Turnover or Actual Expenditure on Transport of raw material / finished products whichever is less under MSME Policy 2015
  • Reimbursement of Internet Usage for IT & ITES - Maximum 50% reimbursement on internet usage charges under MSME Policy 2015
  • Payroll Assistance under Mega Industrial & Investment Policy 2015 – INR 500/ month/ male employee & INR 700/ month / female. EWS, SC, ST drawing max salary of INR 15000 and below subject to strength not exceeding the specified threshold of 25 direct employees for 10 years.

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