State of Uttarakhand came into existence as the 27th state of the Indian Republic on 9th November 2000. Uttarakhand is nestled in the foothills of the Himalayas and it shares international borders with Nepal and Tibet. It is one of the fastest growing States in India, the states GSDP increased at a compound annual growth rate (CAGR) of 5.34% between FY12-18. More than 70% of the state is under forest cover, playing the critical role of green lung. The presence of almost all agro-climatic zones provides commercial opportunities for traditional as well as high value agriculture. Proximity to the national capital and abundant natural resources (including water and hydropower) have enabled the state to develop industrial parks in the plainer regions.
Tourism id unarguably one of the most important sectors to the state’s economy. The tourism not only contributing for over 50% of the total GSDP from 2006-07 to 2016-17, but also providing livelihood across all parts of the state (including hinter land areas.) As the State moves on its vision to become a Green Economy, tourism sector will play an important role in realizing the State’s scoio-economic goals.
The number of tourists visiting Uttarakhand has consistently increased from around 19.45 million in 2006 to 31.78 million in 2016, and registered CAGR of 5.03%. A recent World Tourism & Travel Council (WTTC) report has pegged India as the 7th largest tourism economy globally in terms of absolute size, and further forecasts the sector to grow at 7% between 2017 and 2027, and the State Uttarakhand in expected to match this trend in terms of tourist arrivals.
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 forServices
Medium - up to INR 5-10 Cr for Manufacturing / up to INR 2-5 Cr forServices
Large - INR 10-75 Cr for Manufacturing / Services
Mega - INR 75-200 Cr for Manufacturing / Services
Ultra-Mega - above INR 200 Cr for Manufacturing / Services
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)
10% or max up to INR 1.5 Cr for Hilly Districts and 10% or Max. INR 1 Cr for plain districts for (Large, Mega & Ultra Mega) under Uttarakhand Tourism Policy, 2018
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
*Tourism project/units located in municipal areas of category C & D will not be eligible for Stamp Duty
Uttarakhand Tourism Policy, 2018
50% exemption on Stamp duty for Large, Mega & Ultra Mega
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 Uttarakhand Tourism Policy, 2018
Large: 30%
Mega / 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 Uttarakhand Tourism Policy, 2018
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
Special Incentive Scheme for Women Entrepreneurs
Interest Subsidy – 6% (Max. INR 5 Lakh per year)
Power Tariff Rebate
Power Assistance under Uttarakhand Tourism Policy, 2018
Reimbursement of INR 1/- per unit on the electricity bill and 100% exemption for 5 years after the establishment of unit