Divya Himachal Logo Mar 30th, 2017


Industrial Package Helps Himachal’s Growth

Vipin Sharma         ( cover story )

NEWSThe Central Industrial Package granted to Himachal will finally end on March 31, 2017. It was announced by then Prime Minister Atal Behari Vajpayee for a period of 10 years to give an impetus to the industrialisation in this hilly state having meager resources. Notwithstanding the politicking over various aspects of benefits available under the package besides its tenure, it has certainly put Himachal on the path of industrialisation and growth during the past decade. The industrial package granted has helped this state grow into an industrially developing state. It has increased income of the community by providing employment opportunities to people. Though the culmination of Central industrial package has affected new investment, yet the state government is trying to make Himachal the most favoured destination for investors by initiating various schemes.

Units located In BBN Industrial Corridor

Highlights of BBN Area 

* Accounts for 90% of the investment in Medium & Large Sector

* Accounts for 70.50% of the Investment in Micro & Small Sector

* Accounts for 30% of the total employment in industries

* Accounts for 42% of the Medium & Large and 4% of SSI units

* BBN’s share in total revenue from industries sector is about 50%

* “Asia’s Largest Pharma Hub” having 35% production of Asia region

Export Growth

Year             Value of Exports

2003-04           530.02 crores

2015-16           4877.15 crores

BBN Generates Rs. 2300 Crore Revenue

NEWSThe industrial development has created a new excise district at Baddi and several other offices like drug controller and Superintendent of Police have been shifted here to help investors. Opening of various infrastructure development projects has helped to develop this area and investors. The industries contribute significantly to the state’s revenue and also to the state GDP. Baddi-Barotiwala-Nalagarh industrial area alone generates Rs. 2300 revenue to the state exchequer.


The Central industrial package has helped in creation of various infrastructural facilities in the area. A Technology Centre is coming up at Baddi with a cost of Rs 102 crore. Land measuring 100 bighas at Bhatoli-Kalan village has been provided for this. This would provide technological support and tooling facilities to micro, small and medium sector enterprises and also help in skill development and up-gradation of unemployed youth. With a view to boost export from the state. Inland Container Depot has been constructed at a cost of Rs 14.42 crore at Baddi.

A Trade Centre has been established at Baddi with an investment of Rs 10.81 crore and a Ware House has been constructed at a cost of Rs 26.89 crore at Baddi. A Common Facility Centre has also been established at Nalagarh with an investment of Rs 2.11 crore. A Common Effluent Treatment Plant had been constructed at Baddi at a cost of Rs 53.80 crore for effective management of industrial waste. A Skill Development Centre has also being constructed at a cost of Rs 8.10 crore in Baddi area of Solan district. Working Men’s Hostel has to benefit the workers at a cost of Rs 12 crore has also been created. The state government has created a roadmap for attracting investment after the central package has ended and the government hoped to attract more investment with these steps.

Investment in Last Four Years

An investment of Rs 3581.48 crore was made in Himachal during the last four years. The industries had provided employment to 48,422 youth of the State. In addition, the State Level Single Window Clearance and Monitoring Authority approved 283 industrial enterprises involving investments worth Rs 13262.27 crore and employment potential of 26,680 persons. Apart from it, as many as 7,054 employment opportunities had been created in the state by effective implementation of Prime Minister Employment Generation Programme. Loans worth Rs 23.93 crore were distributed to the youth to start their self-employment ventures.

Attracting New Investments

Entrepreneurs in the state are being provided ‘Chief Minister Start-up/New Industries Scheme’ to attract fresh investment. Other steps taken in this direction are providing land at concessional rate in the Industrial Areas to the small industries or other industries providing employment to 100 Himachalis. The State Government has decided to establish Incubation Centers in premier Institutions in the State to support the Start Ups. These Start Ups in the manufacturing sector would also be entitled for purchase preference by state government and public sector undertakings.

The Official Speak

Mukesh Agnihotri* Efforts of the state government are bound to make Himachal a most favoured destination of investors. It would provide more job opportunities to Himachali youths, besides boosting economic activities in the state

-Mukesh Agnihotri, Industries Minister

* To attract industrial investment, ‘Industry by Invitation’ has been the motto of the state government. It is being proactively and assertively followed by organising special investor’s meets in different parts of the country. In addition, an ‘Investment Promotion Cell’ has been created in the Industries Department to drive new investments in the state

-Tilak Raj Sharma, Joint Director, Industries Department

Arun Rawat* Speedier clearances and easy availability of land and power connections besides some additional monetary incentives from the state can attract fresh investment

-Arun Rawat, Former CII Chairman

Bottlenecks In Economic Capital

The Baddi area could not develop as the economic capital of Himachal as culmination of the central industrial package put a brake on new investments. Several industries closed down after the package incentives were over while others shifted to other incentive states in the north east. The state could not provide monetary incentives to the new industries on its own and investment started declining. Though it has taken several steps now but investors were not able to sustain here due to decline of central incentives.

Delayed Master Plan

The state government created the Baddi Barotiwala Nalagarh Development Authority (BBNDA) for planned development of the area like Noida and other modern industrial areas. However, the master plan was finalised last year when the industrial package expired and haphazard development had already taken place.

Rail Connectivity

The area could not get rail connectivity despite surveys and land acquisition process having been initiated. The four laning of the important NH-21-A is yet to begin and traffic congestion on the roads failed to give this area an ideal industrial look.


State Government’s Failure

Failure of the state government to scrap additional goods tax, which was demanded by the steel units, has created a bad situation for these units. As many as 21 steel units had been closed and 11 others are on the verge of closure. The biotechnology park which was suppose to come up at Aduwal is yet to be setup and even the forest clearance for the new industrial area at Dhabota could not be sought despite lapse of more than one year. The state government has taken one year to select the land for bulk drug park announced by the Union Minister last year. This has delayed its setting up.

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