Industrial Development Scheme for Himachal Pradesh (HP) & Uttarakhand
The Industrial Development Scheme (IDS), 2017 for Himachal Pradesh and Uttarakhand is implemented by the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India. The scheme was notified in 2017 and operational guidelines were issued subsequently in 2018–2019.
The scheme aims to promote industrial growth, investment, and employment generation in the hill states of Himachal Pradesh and Uttarakhand by offering central financial incentives. It focuses on reducing the cost of capital investment, insurance, and GST burden for new and expanding industrial units. For you as an MSME or manufacturing enterprise, this scheme provides substantial support in terms of capital subsidy, tax reimbursement, and insurance incentives, making it easier to set up and expand operations in these states.
Key Features
- Capital Investment Incentive - The scheme provides capital subsidy on investment in plant and machinery, helping reduce the initial setup cost for industrial units.
- GST Reimbursement - Units are eligible for reimbursement of a portion of GST paid, improving working capital and reducing operational costs.
- Insurance Incentive - The scheme supports reimbursement of insurance premium for plant, machinery, and buildings, reducing risk-related costs.
- Inspection and Verification Mechanism - As per guidelines, units must undergo physical inspection after commencement of production to verify assets and eligibility before incentives are approved.
- Time-Bound Claims - Applications for incentives must be submitted within prescribed timelines, ensuring structured and transparent implementation.
Financial Assistance
Eligibility Criteria
To avail benefits under this scheme, you must meet the following conditions:
- The unit must be located in Himachal Pradesh or Uttarakhand
- The unit must be a new industrial unit or undertaking substantial expansion
- The unit must have commenced commercial production within the scheme period
- Investment must be made in eligible plant and machinery
- The unit must comply with DPIIT guidelines and registration requirements
- Claims must be filed within prescribed timelines (generally within one year of production)
- Payments must be made through banking channels only
Documents Required
- Udyam Registration / Industrial registration
- Project report and investment details
- Invoices for plant and machinery
- Bank statements and payment proofs
- Insurance documents (for insurance incentive)
- GST returns and tax payment proof
- CA certificate
Application Process
Option 1: Apply with Bullit, Recommended
Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.
Option 2: Apply Online (Government Process)
- Register on the IDS online portal
- Submit details of industrial unit and investment
- File claim after commencement of commercial production
- Upload documents such as invoices, CA certificate, and bank proof
- Apply for inspection readiness
- Undergo field inspection by authorities
- Track claim approval and disbursement
Frequently asked questions
What is the objective of IDS 2017?
The scheme aims to promote industrial development in Himachal Pradesh and Uttarakhand by providing financial incentives to reduce investment and operational costs.
Who implements this scheme?
The scheme is implemented by DPIIT, Government of India, in coordination with state governments.
Who can apply for the scheme?
New industrial units and units undertaking substantial expansion in eligible states can apply.
What is CCIIAC under the scheme?
It is a capital subsidy provided on investment in plant and machinery to support industrial setup.
Is GST reimbursed under the scheme?
Yes, eligible units can receive reimbursement of a portion of GST paid.
Is inspection mandatory?
Yes, physical inspection of the unit is required before approval of incentives.