Policy Initiatives

Vision & Strategy

Uttaranchal has the dynamism of a new state eager to exploit its resources and potential to attract investments in it areas of comparative and competitive advantage. The key elements of this strategy can be identified:

• The state wants to promote industrialisation both in the organised and small-scale sector, particularly those with backward linkages to agriculture and forest resources. The aim is to strike a balance with the large pool of forest resources.

• Finally, the objective is to exploit its proximity to the National Capital Region (the large urban and industrial cluster around New Delhi) to market.

• The state aims to promote leading edge technologies and sunrise industries in the State in the areas of Information Technology and Biotechnology.

• Public/private sector involvement in generation of power and strengthening of the transmission and distribution network will be encouraged in the state.

• To develop Uttaranchal as a premier education and research centre by leveraging the presence of world-class Research and Technical Institutes existing in Uttaranchal.

Infrastructure Policy

The State of Uttaranchal will give specific concessions for infrastructure projects on merit basis. A joint venture company- Uttaranchal Infrastructure Development Company (U-Dec) has been set up by the State Government along with the Infrastructure Development and Finance Company to provide necessary professional advisory services.

Power: Electricity Reforms on their way
The State Cabinet has decided to bifurcate its power utility to carry out electricity reforms in the State. Uttaranchal Power Corporation Ltd. (UPCL) would be bifurcated into separate companies in the transmission and distribution sectors. While UPCL would distribute and market electricity, a transmission corporation called Transmission Corporation of Uttaranchal would be set up soon and both the utilities would work independently. This has been done in compliance with the Central Electricity Act 2003, which has made it mandatory for states to carryout the power reforms. The Cabinet has also decided to set up a power-trading corporation to sell electricity.

Investment Climate: Offering an Attractive Destination
Uttaranchal Government encourages private sector participation in development of infrastructure projects including specialised industrial estates and special economic zones, export zones, food parks, theme parks, tourism destinations, generation, transmission and distribution of power, roads, airports, civic infrastructure etc.

Institution Mechanism: Single Window Contract
The single window contract facility would be available at the District Industrial Centres at the District level and State Industrial Development Corporation of Uttaranchal at the state level. Apart from providing information and escort services to the entrepreneurs, the centres will also be maintaining a data bank

Tourism: Thrust Industry
The State of Uttaranchal offers immense opportunities for development of vast array of tourism and related activities and services and has thus accorded the industry a status of thrust. A detailed tourism policy has also been formulated. Uttaranchal is the first state in the country to have created a Tourism Development Board by legislation as the highest body to function as a promoter, adviser, regulator and licensing authority for tourism in the state. As a step to promote tourist activity in the state, the state will allow 100 per cent exemption on entertainment tax for multiplex projects in the state for a period of three years, and for five years for all new amusement parks and ropeways.

The Fiscal Advantage
Investments in Uttaranchal will enjoy a number of fiscal benefits offered by the state and central governments

The Fiscal Package for Tourism and Entertainment

• The state has allowed 100 per cent exemption on entertainment tax for all new multiplex projects for an initial period of 5 years and thereafter 30 per cent for a further period of 5 years.

• New projects would be entitled for capital investment in plant and machinery subject to a ceiling of Rs 30 lakhs (approx. USD 62 thousands).

• New tourism units in the State will be allowed rebate/ deferment facility in the payment of luxury tax for a period of five years from the date of commencement.

• New amusement parks and new ropeways installed will be exempted from the payment of entertainment tax for a period of five years.

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