Government of Uttarakhand

Micro, Small & Medium Enterprises Section

No: 184/VII-2-15/146-M.S.M.E./2013
Dehradun: Date: 31 January, 2015
(As amended- 2016, 2018 & 2019)
Office Memorandum

For the integrated development of entire state, including hill areas, for making
industrial activities more attractive and promoting year-wise employment,
herein after through consideration, the Governor is pleased to implement the
Micro, Small and Medium Enterprises Policy (70% Hill area and 30% plain
area)

Micro, Small and Medium Enterprises Policy, 2015

1. Short Title & Commencement:

a) This policy will be called the Uttarakhand Micro, Small and
Medium Enterprises Policy (70 percent hill area and 30
percent plain area), 2015 (as amended-2016, 2018 and 2019).
b) This policy will come into force from January 31, 2015 and
remain effective up to March 31, 2023.
2. Preface:
The micro, small and medium enterprises sector plays an important
role in the economic and social development of any state and the
entire country. Micro, Small and Medium Enterprises sector is the
nursery of entrepreneurship, which is often inspired by personal
innovation and creativity. This sector has an 8% participation in the
country's GDP, out of which 45% of the manufactured product and
40% of its exports. In the micro, small and medium enterprises sector,
2,60,00,000 enterprises are providing employment to 60 million
people. The employment created in proportion to the capital employed
in this area and its expanse is much higher than that of large
enterprises. Geographical distribution and expansion of enterprises of
this area is also high. Micro, Small and Medium Enterprises can be
started from low capital using local resources and skills, so they have
an important role in inclusive development.
In the year 2008, "Special Integrated Industrial Incentive
Policy-2008" has been promulgated to promote industrial
development in the remote and hilly regions of Uttarakhand, creation
of employment opportunities and integrated and inclusive
development of the region. The purpose of this policy was to promote
industrial establishment by promoting entrepreneurship by developing
industrial infrastructure facilities in the industrially backward and
remote hill areas of the state so as to create employment opportunities
and to overcome the economic backwardness of the hilly areas. It
could be possible to stop the migration of manpower. Certain
amendments in this policy were made in the year 2011.
Now the decision has been taken by the State Government to
implement "Micro, Small and Medium Enterprises Policy" in the
entire state. In this policy, financial incentives and facilities provided
in pre-sanctioned policy for hilly and remote areas have been made
more attractive.
(i) This policy will remain effective till March 31, 2023. Under this

policy, the new manufacturers and service sector enterprises

established before March 31, 2020, coming to production, the
benefit of the financial incentives and other facilities provided
in the policy will be permissible from the date of
commencement of production/service to 31 March, 2025 or up
to the period mentioned in the original policy, but after the date
 March 31, 2020, The benefit of the promotional facilities
provided in the policy will be permissible to all the enterprises
that start production in the validity period of the policy for a
maximum of 5 years from the date of production
/commencement of commercial activity.
(ii) For the existing industrial, marked manufactures and also

service sector enterprises, established before the date of effect

of the policy, which would make a minimum of 25% increase in
plant and machinery / production capacity of its existing
enterprise in the form of expansion, diversification or
innovation, there will be facility of investment promotion
assistance and interest subsidy provided in the policy.
(iii) For the revival of sick micro, small and medium enterprises,

the benefit of the financial incentives given in the policy will be

permissible to the marked manufacturing enterprises which
have expanded, diversified and innovated as per the approved
rehabilitation proposal.

Special Provision:

After completing the work of establishment of the industry, the units

that started the production will also receive the benefits of the
incentives, maximum 10 years from the date i.e. dated March 31,
2025, provided in the policy within 18 months from the date of issue
of this order in the categories A and B areas.

2.1 Preamble:

 Promotion and development of micro, small and medium enterprises;

Khadi and Village Industries; handlooms-handicraft sector is the top
priority of the Government of Uttarakhand and for the departmental
 incentive package, institutional cooperation and investment &
development, long term and uniform development will be done in a
phased manner in the entire state by creating an investment-oriented
environment.
 Every possible effort will be made to develop industrial establishment at
various potential sites to meet the special needs of this area. In total, 100
industrial sites will be developed, 70 of which will be in hilly areas.
 Emphasis will be given to coordinate (dovetailing) with the concerned
schemes run by the Government of India by properly tapping the local
available natural resources and skills for the promotion of the micro,
small and medium enterprises sector.
 Effective measures will be taken to facilitate ecosystem, skill
development, technology up-gradation and marketing by creating more
employment opportunities in this field in the coming 5 years.
 The State Government is launching a comprehensive Micro, Small and
Medium Enterprises Policy for the State of Uttarakhand, which will be
applicable from the date of issue of the notification. This policy will be
effective for a period of 10 years. Any unit, which commences
commercial production during the planned period, will be eligible for all
the benefits provided in this policy.

2.2 Vision:

To create a sustainable and equitable system in the field of Micro, Small

and Medium Enterprises by ensuring maximum utilization of local resources,
and to make the Uttarakhand, growth inclusive and employment-oriented.

2.3 Mission:

The micro, small and medium enterprises policy of the State Government
and the Government-assisted business environment and creative approach
 will develop the micro, small and medium enterprises in the state.
Industrial activities will be encouraged by the proposed micro, small and
medium enterprise policy, by encouraging energy efficiency, advanced
technology as well as skill development. The state's micro, small and
medium enterprises will be able to achieve high standards of quality and
cost. By promoting cluster development and regional creativity, this
sector will be able to grow rapidly with additional finance and other
financial incentives.

Thus in the field of Micro, Small and Medium Enterprises, the growth
rate of 14-15% in the production can be achieved. The Micro, Small and
Medium Enterprises will be able to generate about 3 lakh additional jobs
directly and indirectly in the next 5 years in the state of Uttarakhand.

2.4 Creating suitable Industrial environment:

The following efforts will be made through the policy by the State
Government:

1. Creation of suitable industrial environment for the micro, small and

medium enterprises sector.
2. To ensure proper fund flow in the micro, small and medium enterprises
sector of the state by coordinating with banks, related departments and
financial institutions.
3. To give maximum emphasis on encouraging micro enterprises up to
block and village levels.
4. Identifying other potential enterprises by running intensive motivation
campaigns for one year.
5. Simplifying the business regulatory environment of the state.
6. Creating web-based single application system and timely disposal of the
cases.
7. Developing the quality of human resources through training and skill
development.
8. Promotion of cluster approach for providing services and facilities
through common facilitation centres for the benefit of smaller units.
9. To ensure participation of self-help groups and co-operatives in the field
of Micro, Small and Medium Enterprises, and to help in the production
and marketing of conventional/traditional sectors such as village
industries, handicrafts.
10. Promoting joint ventures with the participation of private sector in the
entire value chain of the micro, small and medium enterprises sector.
11. Set up Technical Facilitation Centres for technical up gradation with the
support of technical institutes and experts, through which the state's
micro, small and medium enterprises can get technical support.
12. Formation of a State level inter-departmental task force, which works for
the development of the micro, small and medium enterprises sector.
13. To develop adequate number of Industrial Establishments for providing
basic infrastructure facilities at reasonable rates to micro, small and
medium enterprises sector.
14. Promotion of micro, small and medium enterprises in the state through
cluster.
15. Providing institutional support for the promotion of exports.
16. Strengthening District Industry Centres as single information, assistance
and facilitation centre.
17. Assistance by developing Haats and Marketing Parks for the support and
marketing, for the participation of micro, small and medium enterprises in
the fair / exhibition / festival etc.
18. Institutional arrangements for design and marketing assistance in
handicrafts, handlooms and khadi sector.
 19. To develop a strong institutional mechanism for reviewing and
supporting micro & small scale sector related policies/schemes and
redressal of grievances.
20. Proper utilization and treatment of water resources, recycling of residual
water, promoting non-conventional energy sectors, reducing carbon
emissions by using green technology for environmental protection. In this
context, the National Solar Mission Program, brought by the
Government, is a major effort to promote sustainable ecological
development along with energy security.
21. To develop the workers’ friendly policies and to create the infrastructure
for the primary needs of the workers, such as the ESI Hospital, the
dispensary, the development of the welfare centre and the industrial
workers' residential facilities etc.

Extensive publicity of Micro, Small and Medium Enterprises Policy will

be ensured up to block and village level. By running a campaign in the
first year, giving information to youth about policy, motivation for self-
employment and establishment of micro and small enterprises, interested
youths will be identified. They will be trained and funded through all the
related schemes and all other cooperation will be provided so that they
can successfully run the venture.

Classification of areas marked for financial incentives and grant assistance

To quantify various assistance and subsidies, the state has been divided
into 4 categories as follows:

Category Included/Covered Area

Category A The entire area of the district Pithoragarh, Uttarkashi,

Chamoli, Champawat, Rudraprayag and Bageshwar.
Category B  The entire terrain of Almora district.

 Hill dominated Development Block of district

Pauri & Tehri Garhwal (excluding areas classified
in B + category).

 Hill dominated Development Block of district

Nainital & Dehradun (excluding areas classified in
B + category).

Category B+  District Pauri Garhwal's Dugadda development

block, Kotdwar, Sigaddi and their adjoining plains,
and Fakot development block’s Dhalwala, Muni-
ki-Reti, Tapovan and its adjacent plains of Tehri
Garhwal.

 The entire area of Kotabag Development block of

Nainital district.

 Plains of Kalsi Development block of District

Dehradun.

Category C  Dehradun district's Raipur, Sahaspur, Vikasnagar

and Doiwala development blocks (Areas higher
than 650m above sea level).

 Areas coming under Nainital district’s Ramnagar

& Haldwani Development Blocks.

Category D  Entire area of District Haridwar & Udham Singh

Nagar and remaining area of District Dehradun &
Nainital (Excluding the area covered in Category-
B, B + and C).
Note:

(A) On all service activities marked in Category-C and D, the

financial incentives given to the service sector in the policy,
such as capital gains, interest subsidy and relaxation of stamp
duty, will be allowed in the prescribed limit / quantity as per
the classification of the area. But in the areas of category-C
and D, the benefits of financial incentives payable in the tourist
activities operated under the Municipal Corporation /
Municipality / municipal area will not be permissible.
(B) Assessment of covered plain areas under Category-B+ will be
done separately on the basis of the recommendation of the
district collectors of the concerned District by the Department
of Micro, Small and Medium Enterprises.

Enterprises in the service / manufacturing sector marked for eligibility of

financial incentives

The following activities / activities will be eligible / qualified for

financial incentives / grant assistance:-

 Green and Orange category non-polluting manufacturing enterprises.

 Thrust Sector Industry / Activities notified under the special industrial
package.
 Occupational status activities from State Government such as poultry
farming and tourism activities.
 Following activities of the services sector and other areas included in the
special industrial package announced for the North-East states:
 Hotels, adventure and leisure games: Bungee Jumping, Power
Boats, Kayaking, Joy rides in Choppers, Sea Plane, Hot Air
 Balloon, Skill Game Park, Paragliding, Water Skiing / Surfing,
Tent for Camping, Rafting, Cable Car and rope-ways.
 Nursing home with medical and healthcare facilities. (Allopathic,
Ayurved, Unani, Siddha, Homeopathy and with facilities of other
authentic conventional health care services (Dietary treatment for
diagnosis, health benefits, physiotherapy, diagnostic / pathology
facilities for chronic and serious health problems)
 AYUSH & Wellness: Spa & Rejuvenation Resort, Ayurved,
Panchkarma, Unani, Yoga, Siddha, Naturopathy, Homeopathy &
Spa.
 Professional training institute, such as hotel management, catering
and food craft, entrepreneurship development training, nursing and
paramedical, civil aviation training, fashion designing and
industrial and skill development training.
 Biotechnology
 Conservation tillage & Horticulture, Cold Storage, etc.
 Tourism activities marked / notified by the Tourism Department:
 House Boat / Floating Huts Project.
 Tourism activities having industrial status as tourism units.
 Industrial qualified information technology and information technology
based services; technology based urban and rural call centres, software
development.
 In industrial qualified activities from state government, the minimum
limit of broiler/ layer reproduction zone for poultry industry will be 1000
parents/ chicks.
 Panchgavya
 Enterprise based on local resources such as: Natural Fibre Processing
Plant, Finishing and Dyeing Plant and other such enterprises that fully
 utilize local resources (raw materials) in the processing / finishing of the
product.
 Establishment of Common Service Centres.
 Industry that produces new product using sand, gravel and fly ash as raw
material.
 Energy production in a non-conventional way.

The following additional activities / activities for financial incentives / grant

assistance will be included in eligible / qualifying activities for Category A
& Category B areas:

 Petrol & Diesel pumping stations, Gas warehouse, Automobile repair &
service centre.
 The following RED category industries will also be included in eligible
activities for financial incentives / grant assistance:
 Milk Processing & Dairy products, Butter & Cheese.
 Non-alcoholic/alcoholic beverage (Soft Drink) & bottling of
alcoholic/non-alcoholic products.
 Fermentation/Bottling of Foreign Liquor such as Wine, Whisky,
Scotch, Beer, Vintnery, Winery and Brewery.
 Vegetable oils including solvent extraction and refinery/hydrogenated
oils.
 The benefit of rebate / concessions on river bed material based industries
(including stone crushers) will not be permissible in the entire state.

Explanation:

 According to the classification of districts/ areas in the original policy,

various activities will be included in the eligible activities and the various
benefits provided for Category-B, such as capital gains, interest subsidy,
exemption of stamp duty, rebate of electricity bill, reimbursement of
 SGST, state transport subsidy will continue to be available in the areas of
newly classified category-B+. However, the additional financial
incentives / grant assistance provided under the new provisions from the
office dated 22 March 2016 to those industries under the red category,
reimbursement on internet expenditure, exemption of mandi duty and
state Excise duty payable under State Excise Policy, additional excise
Benefits of reimbursement assistance in fees, bottling fees, permit fees
and other charges in Category-B Will not be permissible.
 Explanation for the inclusion of the energy production in the
manufacturing activities by the conventional and non-conventional
methods have been issued by the Department of Development
Commissioner, Government of India no. 5 (6) / 2013- MSME POL dated
05.11.2014. Therefore, for the purpose of distribution of power, in the
state, in the conventional and non-conventional way, for the generation of
energy production related activities and for the equipment / machine-
making units, which includes solar energy, wind energy etc., will get
classified permissible facilities under MSME policy.
 On all service activities marked in Category-C and D, the benefit of the
financial incentives given to the service sector in the policy such as State
Capital Goods Advantage, interest subsidy and exemption of stamp duty
will be permissible in the prescribed limit / quantity according to the
classification of the area, but in the areas of Category-C and D, The
benefits of financial incentives payable in the tourism activities operated
under the Municipal / Municipality area will not be permissible.
 Considering the possibility of promoting capital investment in the field of
tourism and creation of employment opportunities under the service
sector, tourism is being given the level of duly industry.
3.2 Extra production / enhancement / expenditure on renovation required for
operating enterprise in the buildings owned / purchased / leased will also be
included in fixed capital investment.

3.3 The Department of Micro, Small and Medium Enterprises will be

authorized to issue and clarify the difficulties under the policy.

4 Fiscal Incentives & Concessions

4.1 Investment promotion assistance: - Investment promotion assistance

will be permissible on fixed capital investment in the plant/machinery and
workshop building of the enterprise, as per the following categories:

S. No. Category Amount/limit of promotional assistance

1 Category A 40 percent (max. Rs. 40 lakh)

2 Category B & B+ 35 percent (max. Rs. 35 lakh)

3 Category C 30 percent (max. Rs. 30 lakh)

4 Category D 15 percent (max. Rs. 15 lakh)

Explanation:-

 In all categories of districts / areas, classified under the MSME policy, the
subsidy assistance from only one source will be permissible from the
investment contribution provided in the Government of India's Industrial
Development Scheme 2017 or the State Government-run MSME Policy
2015 and Special Incentive Assistance Scheme for Women
Entrepreneurs.
  Under the schemes operated by various departments of the Government
of India and the State Government, capital subsidy/ investment promotion
assistance will be permissible from the same source for the same
component.

 For Enterprise based on local resources such as: Natural Fibre Processing
Plant, Finishing and Dyeing Plant and other such enterprises that fully
utilize local resources (raw materials) in the processing / finishing of the
product, additional incentive assistance will be given in addition to 10
percent additional permissible quantity / limit of investment promotion
assistance in classified identified areas / districts.

4.2 Interest Subsidy: -

S. No. Category Amount/limit of grant

1 Category A 10 percent (max. Rs. 08

lakh/year/per unit)

2 Category B & B+ 08 percent (max. Rs. 06

lakh/year/per unit)

3 Category C 06 percent (max. Rs. 04

lakh/year/per unit)

4 Category D 05 percent (max. Rs. 03

lakh/year/per unit)

In the said districts / areas, Manufacturers of Micro, Small and

Medium Enterprises and Marked Micro, Small and Medium
Enterprises in the Service Sector at Category-A, B, interest will be
eligible for interest subsidy assistance against the interest payable on
 loan approved / distributed by the approved bank / financing
institution on Term Loan (Term Loan).

4.3 Reimbursement of SGST: -

Under the Micro, Small and Medium Enterprises Policy, 2015, the
maximum ceiling and quantum of reimbursement of goods and service
tax (GST), for the 5 years for a total net SGST tax liability for districts /
regions of Category A, hundred which is sold to the customer within the
state, will be 100% and the remaining time will be 90% and in the
districts / areas of Category B and B+, the total net SGST tax liability,
which is sold to the customer within the state, will be 100% and the
remaining time will be 75%.

Explanation: -

Under the Micro, Small and Medium Enterprises Policy, 2015 (as
amended, 2016), the goods and services tax act, 2017 (GST) does not
apply on the manufactured goods by such eligible, identified
manufacturing enterprises, and on the basis of which the value of the sale
of products / goods manufactured within the state is being imposed as
Value Added Tax (VAT), in accordance with the guidelines of Micro,
Small and Medium Enterprises Policy and on this subject, as may be
prescribed. Value-added tax will be reimbursed on the basis of eligibility
in the prescribed limit / quantity.

4.4 Exemption in stamp duty: -

S. No. Category Exemption Amount/limit

1 Category A 100 percent

2 Category B & B+ 100 percent

 3 Category C 100 percent

4 Category D 50 percent

4.5 Reimbursement of Electricity Bill (only for manufacturing

industries): -

Reimbursement of electricity bills will be admissible in category A and B

areas as follows. This facility will not be payable in Category-C and D
areas: -

Category A Category B*

Combined Power Load Reimbursement Reimbursement

Amount/ limit Amount/ limit

100 KVA 100 percent for first 5 100 percent for first 5
years, thereafter 75% years, thereafter 60%

Above 100 KVA 60% 50%

* This facility will not be applicable to more power consuming

enterprises such as Hotel / Motel, Resorts, Guest House, Steel Rolling
Mill, Electricity Kiln, etc.

4.6 Special State Transport Subsidy (only for manufacturing industries):

S. No. Category Subsidy Amount/limit

7 percent of the annual turnover, or

the actual expenditure incurred in
the transportation freight of raw
1 Category A materials / finished goods,
 whichever is less.

5 percent of the annual turnover, or

the actual expenditure incurred in
the transportation freight of raw
Category B materials / finished goods,
whichever is less.

5 percent of the annual turnover,

Max. Rs. 5.00 lakh/year/unit or the
2
actual expenditure incurred in the
Category B+ transportation freight of raw
materials / finished goods,
whichever is less.

 After the 1st July, 2017, the entire amount related to the tax liability on
the overlapping enterprises under the Goods and Services Tax (GST) Act
will be deposited in the treasury and no part will be kept with oneself. As
per filing return filing and after adjustment of input tax credit (ITC),
considering the total tax liability according to the provisions of the
scheme, Such SGST provided under paid goods and service tax will be
reimbursed, which will directly relate to the sale of the customer (B2C)
within the state. The goods / commodities produced by such
manufacturing enterprises on whom GST does not apply and on which
the sale of goods / goods manufactured within the state is being imposed
as VAT, the revised limit / amount will be reimbursed according to the
eligibility of the fixed limit / quantity, according to the MSME policy and
specific guidelines as prescribed.
  The benefit of discounts / concessions on river bed material will not be
permissible.
 On all service activities marked in Category-C and D, the benefit of the
financial incentives given to the service sector in the policy will be
permissible in the prescribed limit / quantity as per the classification of
the area. But in the areas of Category C & D, the benefit of financial
incentives payable in the tourist activities operated under the Municipal
Corporation / Municipal Council / Municipality area will not be
permissible.

4.7 (A) New Provision: -

In the areas / districts classified as Category A, B, B+, C & D, the

following manufacturers / service activities will be given in addition to
them mentioned in the form of Financial Incentive Reimbursement
Assistance.

S. No. Product/Activities Reimbursement Amount/limit

Information
Technology /
1 50 per cent reimbursement
Information
assistance on Internet expenditure
Technology Supported
Services (IT/ITES)

Agriculture & Fruit-

based industry
(cleaning, sorting,
grading, packing and

2 preservation of Hill 100% discount in the Mandi fee.

pulses, fruits and
 vegetables)

 Manufacturing of
Non-alcoholic/
alcoholic products
along with Distillery Reimbursement Assistance up to 75
and Brewery. percent of the total payable state
excise duty, additional excise duty,

 Manufacturing of bottling fees, license fee and other

Foreign Liquor such fees due under the State Excise

as Wine, Whisky, Policy.

3
Scotch, Beer,
Vintnery, Winery
along with Distillery
and Brewery.

Explanation: -

The units which have received registration under the MSME policy
before issuing the official memo regarding revision in the policy, and
under single window system, have received permission for purchase of
land for installation of bottling of alcoholic / non-alcoholic products and
fermentation / bottling of foreign liquors such as wine, whiskey, scotch,
beer, fruit and grain based winery and vintenery, brewery and after
obtaining the order of change in land use under Section 143, all
concerned departments have obtained the consent letter (consent to
establish, desired permission / no objection from the pollution control
board and on the basis of merit taken all effective steps for the
establishment of the enterprise, the discount / reimbursement provided in
the state excise duty, additional excise duty, bottling fees and other
 charges, the benefits of other financial incentives will continue till date 31
March, 2025 as per the provision of the office dated March 22, 2016.

In addition to the said financial incentives, all other promotional aids

approved in the Special Integrated Industrial Promotion Policy will be
applicable in the category A, B and B + districts / areas. The provisions
described in chapters 4 to 9 will be applicable in the entire state.

Under the financial incentive provided in the Special Integrated Industrial

Incentive Policy-2008 (as amended-2011), the class-5 (1) (VII) and 9 (2)
will be read and understood as follows:

(i) In the Land Resources Development Incentive Scheme, 50% of the

expenditure incurred on establishment facilities in industrial estates in

private sector will be given as grant up to maximum of Rs.50 lakh to the
promoters of industrial estates.
(ii) 75% reimbursement (maximum Rs. 01 lakh), of expenditure incurred for

getting quality marking, ISO certification, ISI marking, BIS trademark,

copyright registration etc. from National / International approved
institutions will be given as assistance.

4.7(B)Scheme of National Stock Exchange to raise capital for Emerging

SME units: -

Capital mobilization has been a problem for small and medium

enterprises. Separate listing has been made in the National Stock
Exchange for the capitalization of small and medium enterprises by the
Securities & Exchange Board of India (SEBI), by which small and
medium enterprises can raise capital through exchange. This platform
also provides the opportunity for credible and fast-growing businesses to
raise capital with appropriate administration standards.
 In order to raise capital for small and medium enterprises, the
reimbursement of expenditure incurred for listing in the National Stock
Exchange is proposed to be given in the form of incentives. In order to
encourage small and medium enterprises under the scheme, 10 percent of
the expenditure incurred for listing in the National Stock Exchange or the
one-time Reimbursement Assistance of a maximum of Rs 2.5 lakh (Rs 2
lakh fifty thousand) will be payable after successful raising of the equity.

4.8 In addition to the above, the new provision in the "Uttarakhand

Micro, Small and Medium Enterprises Policy-2015 (as amended-2016
and 2018)" will be applicable as per point 4.8: -

1) All the units benefitted under the MSME Policy will ensure that 70% of
their employment in the enterprise is available to the people of the state.
When accepting financial incentives for the said, it is mandatory to obtain
affidavit regarding the details of the employment of the concerned
enterprise.
2) Under the new provisions under the MSME policy, in relation to the limit
/ quantity / permissibility and process of reimbursement of the incentives
provided under the State Excise Policy, such as excise duty, bottling fees,
license fee and payable dues, detailed guidelines will be issued after
obtaining the consultation / consent of the Finance Department and
Excise Department, as processed by the Department of Micro, Small and
Medium Enterprises.

5. Infrastructural Support

5.1 Land Bank: - To establish micro, small and medium enterprises,

entrepreneurs have difficulty in investing a large amount in purchasing of
land. Therefore, it is necessary that land should be made available to them
on concessional rates and easy terms. For Micro, Small and Medium
 Enterprises, on the basis of their requirement, arrangement of land bank
will be made for industrial infrastructure development. The land available
with the industries department and other departments, where
infrastructure development is possible, will be included in the land bank.
Such land will be identified by the State Government from time to time,
which can be developed as industrial establishments. According to the
decision of the Hon’ble Cabinet, considering the goal of development of
100 industrial areas, viable locations marked in the first phase, where the
possibility of development of infrastructure facilities is high, 25 industrial
areas will be developed. For establishment of industrial area at viable
places, the land owned by the Industries Department and priority for other
government land, acquisition of land through district collector, as well as
from local landowners, who want to give their land for development, land
will be acquired at reasonable price.

5.2 Special industrial establishments will be set up for micro, small and
medium enterprises. In Integrated Industrial Estates of SIIDCUL, 25% of
the land will be reserved for Micro and Small Enterprises. The assistance
/ subsidy received through the Infrastructural Support Scheme (Ministry
of Micro, Small and Medium Enterprises, Government of India) will be
taken as the minimum cost of land to small / micro enterprise and the
State Government will also provide assistance / subsidy to the selected
Developer Institution / SIIDCUL for ensuring the availability of land at
lower cost to the entrepreneurs. Determination of the rates of land will be
done by The Director, Industries considering the actual cost of land on
the basis of the recommendation of the district level committee headed by
the District Magistrate, keeping in view the cost of development of the
infrastructure facilities, rates of prevailing land and industrial
development in the region. The activities of such service sector will also
 be identified by the officer working as Director, Micro, Small and
Medium Enterprises Department, which can be allotted land in industrial
areas. Allotment of land in industrial estates / areas developed by the
Department of Micro, Small and Medium Enterprises will be done by
the District Authorized Committee formed in Rule 9 (B) of
Uttarakhand Enterprise Single Window Facilitation and License
Rules-2015.

“The process of land-use change of land purchased by the

entrepreneur will be made easy and simple. Except for the areas not
included in the notified industrial areas / master plan, the certificate
of land-use change of land used for the establishment of micro-
industries will not be required. "

5.3 Establishment of Infrastructure Development Fund for Micro, Small

and Medium Enterprises: -

A separate fund will be created for the establishment of new industrial

estates and for the development of infrastructure of existing industrial
estates, for which funds will be kept in this fund with financial assistance
from SIIDCUL, State Government and other agencies. For the formation
of the fund initially, Rs 20 crore will be given by SIIDCUL.

A complete support system will be funded from this fund. For creating
DPR for cluster construction in micro, small and medium enterprises,
specialists, consultancy and advisory services related activities, the initial
financial assistance (and State’s share for various schemes of the
Government of India) will be arranged with this fund.

An authority committee will be set up to accept the operation /

expenditure of this fund, which will be delegated rights.
5.4 Development of new industrial estates: -

The State Government will provide necessary support to develop new

Industrial Estates. In these industrial estates, provision of basic
infrastructure like roads, electricity, water, drainage system as well as
supplementary facilities as police station, bank, labour house, solid waste
management system, ESI hospital etc. will be provided. The development
work of new infrastructure will be done by the concerned institution for
the purpose of development of infrastructure facilities.

5.5 Establishment of Multi-storied estates: -

To provide space to the micro and small units, factory shades / flats will
be built in new and pre-established industrial estates, so that the valuable
time / resources of entrepreneurs could be invested in industrial
development rather than investing in the search of land & building.
Multi-storied entities will be created by the State Government for Micro,
Small and Medium Enterprises. Easy and minimum plot size, FSI will be
determined for micro, small and medium enterprises / flatted factories.
And in this case allocation of the primary facilities / sheds regarding lease
or rent will be done according to the guidelines issued from time to time.
All the facilities will be available to the entrepreneurs including
electricity, communication, so that they can do the production work by
just installing the machine-plant

5.6 Up gradation of established industrial estates: -

Under this policy, infrastructure development of pre-established industrial

estates will be done on priority basis. Proper budget provision will be
made for the maintenance of industrial estates in district plans.

5.7 Vendor and Ancillory Park: -

 To get land for medium and large enterprises to set up their vendor park
and development of infrastructure facilities, assistance at the rate of 20%
will be given up to the extent of 01 crore. In this park it will be necessary
for the concerned entrepreneurs to establish at least 10 micro and small
enterprises.

5.8 Cluster Development Plan: -

The State Government will receive necessary support and assistance in

the cluster development scheme of the Ministry of Micro, Small and
Medium Enterprises, Government of India. As per the requirement of the
state government, other necessary assistance, including land for Common
Facilitation Centre, can be given. According to specific requirement for
each cluster, the package for assistance will be prepared by the State
Government.

6. Institutional Support / Simplification / Enactment

6.1 Single window facilitation and Clearance Act: - The 'Uttarakhand

Enterprises Single-window facilitation and Clearance Act-2012' has been
implemented by the State Government for the entrepreneurs with the
objective of timely disposal of problems related to establishment of
enterprises, objections and approvals.

(i) The system will provide the facility of online application on the same
portal, making the information technically strong for entrepreneurs. A
single application will be developed for the entrepreneurs to obtain all
necessary approvals / no objections and permissions easily.

(ii) Provision of self certificates in connection with complaint related to

them and statutory requirements will be made for the Micro, Small and
Medium Enterprises.
6.2 Micro, Small and Medium Enterprises Development Cell: - MSME
Development Fund will be set up to ensure timely disbursement of
financial incentives / grants provided under the policy, which will be
funded by the State Government, SIDCUL and other sources so that
immediately after acceptance Funds can be distributed to units. Effective
arrangements will also be made for timely disbursement under single
window act.

6.3 Udyog Mitras: - Udyog Mitras’ at district and state level has been
constituted for continuous dialogue with entrepreneurs in the State of
Uttarakhand, resolving their problems and decision on policy matters.
Industry friend will be made a three-tier. At the district level, at least one
meeting per month will be organized under the chairmanship of the
District Magistrate; at the state level meeting at the level of the Chief
Secretary will be organized once in three months and at the level of the
Chief Minister at least one meeting annually will be organized. In the
district level industry friend, the District Magistrate will take support of
all the related departments, such as: Forest, Horticulture, Agriculture,
Animal Husbandry, Technical Education, Tourism etc. to work for the
development of micro and small scale industries for the district. For this,
proper cooperation of financial institutions and banks will be ensured.
Policy matters will be referred at the state level.

6.4 Uttarakhand Micro and Small Enterprises Facilitation Council: - In

accordance with the system envisaged in the Micro, Small and Medium
Enterprises Act, 2006, the State Facilitation Council was constituted
under the chairmanship of Director Industry / MSME in the State, Which
is a powerful mechanism for the disposal of matters related to micro,
small and medium enterprises. Necessary steps will be taken for
infrastructure development and human resource development for
 strengthening the Facilitation Council system. For this, efforts will be
made to take assistance from the Government of India.

6.5 Entrepreneurship and Skill Development Cell: - In the Micro, Small

and Medium Enterprises Directorate, this Cell will establish coordination
among various institutions of the state related to entrepreneurship
development training and skill development. A, detailed ‘demand and
supply gap' will be studied to determine the requirements of training
programs in collaboration with the training institutions and training will
be conducted with the help of training Institutes.

As per the demand of industries, the Micro, Small and Medium

Enterprises Department, will coordinate and promote the Skill
Development Mission in the state, and assist in organizing the training
programs.

The micro, small and medium enterprises will provide assistance to the
National Level Institutions such as Indian Institute of Management,
Indian Institute of Technology for sponsoring special training activities
for their workers, up to 50 per cent of the cost of the training, maximum
of Rs. 10,000 / -. Initial consent will be obtained by the enterprises from
the Micro, Small and Medium Enterprises Directorate for sponsoring the
workers for the training.

This Cell will ensure skill development training programs, in co-

ordination and collaboration with Skill Development Mission, ITI, and
Polytechnic. Integrated Campaigns will be organized for the wide
publicity of Skill Development Program in the State.

6.6 Vendor / Sub- Enterprises and Cluster Development Cell: - In order

to give maximum priority to the micro, small and medium enterprises of
the state, a Cell will be formed to play the role of guide and facilitator,
 which will assist the Public Sector units, Large Enterprises and Micro,
Small and Medium Enterprises in coordination with each other, so that
the micro and small units could be able for the supply of goods / services
to public sector undertakings and large enterprises.

This Cell will organize guidance and necessary training / capacity-

building activities such as buyer-seller conference, regular dialogue etc.
to link the micro, small and medium enterprises to the public sector units.

6.7 Promotion of self-employment: - The guidance and facilitation cell

established at the District Industry Center will provide information of all
self employment schemes, application form, project report and guidance.
The General Manager, District Industries Center, will coordinate with all
Departments / Projects / Institutions and integrated review will also be
done in the District Industry Friends meetings. Maximum utilization of
available resources in a planned manner will be done by coordination
with the programs of national / international livelihood and self-
employment development schemes run through various departments /
institutions.

The Micro, Small and Medium Enterprises Department, will identify

educated youths, about 500-1000 people per year, will be assisted in
setting up their own enterprises by giving them entrepreneurship and skill
development training. So, the trained people in place of finding jobs for
themselves will be able to provide employment to other people through
their enterprise. All necessary help, including financial support, will be
made available by the department.

Organizing Self Employment and Entrepreneurship Day: - The last

Friday of each month will be celebrated as Self Employment and
Entrepreneurship Day. On this day, officers of all Departments /
Institutions / Banks related to schemes of self-employment and small
enterprises, will be available in District Industry Centers and will provide
information of their schemes to the entrepreneurs and solve their
problems as far as possible. Through advertisement and publicity, the
youth and new entrepreneurs of the district will be informed about to
participate in this day. It will be ensured that the concerned officers
should be available on that day.

For the promotion of entrepreneurship and self-employment in the

academic institutions, schools and colleges, co-ordination with Education
Department / Technical Education Department will be established, so that
proper information and training arrangement about the self employment
may be made for the youth studying in these institutes.

On the lines of the Pradhan Mantri Rojgar Yojna, the State Government
will implement the Chief Minister's self-employment scheme. Under this
scheme, micro enterprises, in manufacturing area maximum of Rs. 05
lakh and in the trade and service area maximum Loans up to Rs.03 lakh
will be approved through banks. Margin Money Assistance will be given
as per the following table, under this scheme: -

Margin Money Assistance

Category Urban area Rural area

General category 15% 25%

SC/ST/Women/Ex Army 25% 35%

Men/Minorities/Hill Area
 Under the scheme, activities which have been identified by the Khadi and
Village Industries Commission (KVIC), Government of India as negative
list, will also be financed.

Projects above the said financial limit will be financed under the Prime
Minister's Employment Generation Program. Given the local needs of the
state, more activities will be included in this scheme.

6.8 Export Promotion Cell: -

An Export Promotion Cell will be established in the Directorate with the

aim of promoting exports from the State. Proper staff and resources will
be created in this cell. Efforts will be made by the cell to coordinate
various export promotional councils, national level export promotional
institutions such as: FIEO, DGFT, IIFT, to bring the various schemes and
information of the Government of India to the exporters of the state. It
will participate on behalf of the state government in various national and
international export promotion fairs and in the countries where there are
possibilities of export of state's products, where business delegation will
be able to tour together with Exporters and Export Promotion Councils
from time to time.

6.9 Technical Business Incubator: -

For the purpose of innovative technological and design development in

the field of Micro, Small and Medium Enterprises, in the areas of
automobile, machine tools, food processing, electronic, forest based
enterprises and identified / selected clusters, etc. Financial assistance will
be given to the incubator / centre of excellence up to Rs.50 lakh on the
expenditure incurred on infrastructure for installation of technical
professional incubator / centre of excellence.
 State universities, technical and research institutes will be encouraged to
provide incubator facilities to new and emerging entrepreneurs.

6.10 Testing laboratory and certification: -

In view of the current global competition, testing laboratories will be set

up on the State of the Art Machineries basis for the fulfilment of the
requirements of General Venture and Micro, Small and Medium
Enterprises, for which the probabilities for the provision of autonomous
grant will be searched on the basis of public private participation.

The Directorate of Industry will coordinate on behalf of the micro, small

and medium enterprises organizations, in the process of application for
acceptance under the schemes of Ministry of Micro, Small and Medium
Enterprises, Government of India.

6.11 Strengthening of Directorate of Industries and District Industry

Centres: -

In the recommendations given by the Prime Minister's Task Force

Committee on Micro, Small and Medium Enterprises, emphasis has been
laid on strengthening the District Industry Centre as an agency promoting
Micro, Small and Medium Enterprises. The Task Force Committee has
strongly recommended the strengthening of the District Industry Centre
as an agency for providing comprehensive information on the schemes,
policies / viable activities of project, framework and marketing
assistance. District Industry Centre should play the role of facilitator for
micro, small and medium enterprises by effectively coordinating with
other departments / organizations and financial institutions. Therefore,
effective steps will be taken to strengthen the Directorate of Industries
and District Industry Centre, which will lead to effective implementation
of Micro, Small and Medium Enterprises Schemes.
 In the MSME (Industry) Directorate, the proposed cells in the policy will
be strengthened as above. Professional institutions will be able to be
empanelled for services for technical and specific support for these cells
or experts can be appointed on contractual basis. The structure of the
Industry Directorate and District Industry Centers will be reorganized.
Full time post of Director, Micro, Small and Medium Enterprises will be
created.

For capacity enhancement of departmental employees / officers, they will

be sent for training in appropriate institutions and will be sent in the
touring programs outside the state, from time to time.

District Industries Centre will provide all desired help, including

identification, training and financing of enterprises and potential
entrepreneurs based on local raw material. The MSME Department will
visit other hill states and the countries / regions with geographical status
like Uttarakhand and the strategy adopted by them will be studied
continuously. And dynamic action plan for the state will be prepared
annually.

Bankable projects will be created for the identified district wise and
development bocks-wise potential enterprises. The assistance of SIDBI,
NABARD and banks will also be taken for this. In the District Industry
Centre, the counseling and information rooms will be strengthened to
make the necessary information available to the entrepreneurs.

6.12 Pollution: -

Process of NOC for making consent and renewal of micro, small and
medium enterprises will be made smooth and effective by implementing
the Ministry of Forest and Environment order no. 16011/1/92-CPW dated
September 29, 1992. According to the provisions of this order, the
 investigation process carried out in the order of any Micro, Small and
Medium Enterprises, which are related to Air Act 1980 (prevention and
control of pollution act 1980) and Water Act 1974 (prevention and
control of pollution act 1974), will be applicable only to heavy polluting
units (referred to as heavy industry in Ministry of Forest and
Environment, Government of India Order, dated September 29, 1992).

This arrangement will be made that on the application of other category

of micro and small enterprises, the acknowledgment issued by the State
Pollution Control Board for will act as consent and the renewal of which
will not be required until the enterprise changes its process or does
modernize.

In different areas of the state, the pollution control board has decided to
give consent / authorization to the orange category industries for three
years and green category industries for a period of five years.
Accordingly in place of annual renewal, the above, arrangements will be
made for green and orange category industries in Doon Valley area.

The reduction in tariff rates will be considered by the Pollution Control

Board in hilly areas.

In view of the existing technology up-gradation / technical progress in the

provisions of the Doon Valley Act, a “Working Group” will be formed by
including experts to give their recommendations to the Government of
India.

6.13 Credit: -

Efforts to provide adequate institutional credit for the development and

survival of micro, small and medium enterprises are very essential.
 Special efforts will be made to maintain adequate institutional credit flow
for micro, small and medium enterprises.

All loans up to Rupees 1 crore will be co-ordinated with banks to be

covered under the Credit Guarantee Fund Scheme, so that entrepreneurs
can be kept free from giving collateral security against the loan. A
separate credit guarantee fund will be set up by the State Government.
Government of India has proposed to provide a proportionate guarantee
to the State Government fund from the MSME Ministry. Proper
assistance of Bhartiya Mahila Bank will be taken for the financing of
projects proposed by women.

An insurance scheme will be implemented for micro enterprises

(including service areas) with capital investment of up to Rs. 5 lakh, of
which 75 percent premium will be made available by the Government.

6.14 Rehabilitation Scheme for Sick Micro, Small and Medium

Enterprises: -

Efforts will be made to protect the enterprises from the sickness. Efforts
will be made to revitalize sick units on time. On the suggestions of the
Empowered committee of the Reserve Bank of India, constituted for the
revival of sick units, the State Government will provide assistance for
diagnostic study of the sick units.

The State Government will coordinate with the financial institutions to

prepare the package of revitalization and rehabilitation of the sick units
and will continue to implement it.

7. Technical up gradation, quality certification, research and

development and technical support:
7.1 Mini Tool Room: -

The State Government will set up Mini Tool room in the main industry
clusters, under the National Manufacturing Competitiveness Programme
of the Government of India. Apart from this, the state government will
assist the Mini Tool room projects brought by other industrial clusters
and industrial organizations to help 50% of the project cost (maximum
Rs. 02 crore), on the basis of demand based strategic location.

7.2 Promote manufacturing competitiveness: -

Assistance and cooperation will be provided by the state government as

per necessary requirements for effective implementation of the National
Manufacturing Competitiveness Programme (NMCP) scheme of the
Government of India.

 National Program on Application for Lean Manufacturing.

 Promotion of information and communication technology in the
manufacturing sector.
 Support for Technical and Quality Up gradation for Micro, Small
and Medium Enterprises.
 Support for entrepreneurship and managerial development in the
manufacturing sector for Micro, Small and Medium Enterprises.
 Design Clinic Scheme for Design Excellence in the Manufacturing
Sector.
 Making the manufacturing sector competitive through quality
management standards (QMS) and quality technology tools (QTT).
 National Campaign for Investment in Intellectual Property.
 Marketing Support / Support for Micro, Small and Medium
Enterprises Region.
7.3 Energy and Water Conservation: -

 On the basis of energy and water audit from a reputed / accredited

institution, repayment of 50 percent of the audit cost (maximum Rs
50 thousand) will be done to micro, small and medium enterprises.
 Union / Clusters of the units will be given preference.
 In the period of 05 years, assistance of 20% (maximum Rs.10 lakh)
of the cost of plants installed for energy / water efficiency will be
provided.

7.4 Assistance to Research and Development Institutions: -

 The research and development institutions established with the

assistance of the state government will be assisted according to
their demand, which will include new research and development
institutions, testing facilities, incubator centre etc. Up to 80 percent
of project cost can be provided.
 Determination of eligible activities and institutions will be done by
the State Level Empowered Committee.
 50% of project cost will be assisted by any industrial unit /
industrial organization through a prestigious research and
development institute / AICTE recognized technical school, for
sponsored research work. (This will not include the cost of land
and buildings).

7.5 Where the same type of schemes are being operated by the MSME
Ministry of Government of India or any other ministry, there, the effort
will be made to get assistance under the schemes of the Government of
India first. If the assistance is not received from the Government of India,
the State Government will provide assistance in the schemes provided
under the policy.
7.6 Quality Certification: -

Eligible micro, small and medium enterprises will be assisted with a

maximum of 3 quality certification in the period of 05 years, 75% of the
cost of quality certification up to maximum of Rs. 06 lakh (in five years),
certification cost will include the following components:

 Fees taken by the certification agency (excluding transport, living

and surveillance facility).
 Cost of testing devices.
 The cost of checking the devices.
 Training and consultancy fees (except transportation, living and
surveillance).

7.7 Award for Best Micro, Small and Medium Enterprises: -

Micro, Small and Medium Enterprises will be given first, second and
third prizes in the following categories: -

 Increase in production and profit.

 Quality and environmental improvement measures.
 Technical up-gradation for new product and process development.
 Export Promotional Units from Uttarakhand.

8. Marketing assistance and export promotion:

8.1 Purchase Preference for Micro and Small Enterprises: -

In the order of the provisions of the Micro, Small and Medium

Enterprises Act, 2006, effective implementation of the Priority Purchase
Preference Policy will be ensured for the Micro and Small Enterprises
established by the State Government in the state, so that the products of
micro and small enterprises, handicrafts, handloom and khadi village
 units of the state can be promoted and local raw materials can be used.
This policy will be reviewed from time to time and necessary orders will
be issued.

8.2 Marketing Assistance, Seminar & Exhibition: -

1) The State Government will make efforts to set up a modern

exhibition-trade facility centre in Dehradun, Haridwar and major
locations of the state, in order to showcase and spread the products
of the micro, small and medium enterprises sector.
2) The product display centre will be set up in every district industry
centre and industrial areas.
3) Marts will be set up in each district for marketing of products
produced by established micro, small, handloom and handicrafts,
cottage and khadi village industries. Arrangements will be made
for the location of small marts in the other major cities/town of the
state, Parade Ground in Dehradun, Roadways Bus Station, Mela
Bhawan, Haridwar, Uttarakhand Sadan / Bhawan, New Delhi.
UHHDC will ensure the management of these marts.
4) The State Government will effectively implement the Purchase
Preference Policy to encourage micro-small enterprises for
departmental procurement in PSUs and departments of the state.
5) Clusters of enterprises will be assisted in formulating a project for
the marketing of their products under a joint brand / banner.
6) Support will be given to prestigious firms / organizations (who
have sufficient experience in this work) for marketing and e-
marketing of products of Micro, Small and Medium Enterprises
including handloom / handicrafts and khadi products.
7) Coordination with the Government of India will be established for
guidance in setting up of a resource centre, Documentation for
 micro, small and medium enterprises under the Directorate of
Industries. Coordination will be established with the help of Micro,
Small and Medium Enterprises, Government of India for assistance
and grants under various schemes.

8.3 On packaging design from a reputed institution, 50% of the cost

(maximum Rs. 02 lakh) will be available to Micro, Small and Medium
Enterprises once in 05 years.

8.4 Financial assistance for national seminars / exhibitions and international

seminars / exhibitions organized by industrial organizations, will be
considered as needed.

8.5 Export promotion: -

Under the Directorate of Micro, Small and Medium Enterprises, the

Promotion Cell of the export related information will be set up, which
will create plans on database on export and export promotion and keep
coordination / contact with the Export Promotion Organization
Federation, Export Promotion Council, Indian Foreign Trade Institute,
EXIM Bank and other financial institutions.

Various programs related to export promotion; facilitation and process

will be organized for the officers and entrepreneurs of the Micro, Small
and Medium Enterprises Department.

Such units, which export more than 75 percent of their production, will be
provided additional interest component (Rs 02 lakh per annum) at the rate
of 2 percent. Exporter units will be given awards and prizes for special
contribution to exports.
9. Handloom-Handicraft and Khadi Village Industries

9.1 Handloom-Handicraft and Khadi Village Industries are primarily

traditional occupations of rural areas and provide employment and
livelihood to a large number of the residents of the state. Weavers and
artisans mostly relate to the Scheduled Castes, Scheduled Tribes,
Minority communities and economically weaker sections of society. The
progress and development of these areas will be done on priority basis.

9.2 Uttarakhand Khadi and Village Industries Board is the work agency for
the progress of Khadi and Village Industries. The employment oriented
activities of the Board will be further expanded. Project cost limit under
personal interest subsidy scheme of Board has been raised by the State
Government from Rs 2 lakh to Rs. 05 lakhs. The State Government is
committed to encourage marketing of Khadi products through the
provision of giving exemption on the sale of khadi products from October
02 to 108 working days every year.

9.3 In the State the Khadi and Village Industries will be promoted through
different schemes of Khadi and Village Industries Commission.

9.4 Uttarakhand Handloom and Handicrafts Development Council (UHHDC)

have been constituted for overall development of handloom and
handicrafts sector in the state. Necessary budgetary support will be given
to the UHHDC for effective implementation of handloom and handicraft
development schemes. Contribution as state share will be provided by the
State Government in the Central Government's handloom and handicraft
social security sector schemes.

9.5 The State Government will also be actively implementing the

comprehensive Handloom Development Plans (CHDP) of the
Government of India, which provides technical up gradation in the
 handloom sector, technology up gradation of en-loom activities,
conjunctive equipment, marketing promotion and availability of thread
etc. Under the Integrated Handloom Development Scheme, nine (9)
handloom clusters are being operated by the state government in the state.
The necessary support for the continuous development of these clusters
will be made available through the UHHDC.

9.6 Establishment of Textile Park in Jaspur is proposed. The modern textile

industries will be encouraged in this park. Linkage of state's traditional
handloom clusters will be established with this park. Two mini textile
parks will be set up in mountainous areas, which will produce yarn and
value-added products based on local wool, rhythm and natural lines.
These facilities will be provided in the main textile park in technical,
design and finishing.

9.7 There is abundant production of best quality wool, various varieties of

silk and other natural fibers in Uttarakhand. These provide quality raw
material to khadi and handloom weavers. Better coordination will be
established from National Wool Board, National Silk Board, State Wool
and Ship Development Board, State Bamboo and Fiber Development
Authority and other institutions to improve the quality and availability of
other natural fibers including wool.

9.8 In the state of Uttarakhand, there is an immense legacy of unique folk art
such as Aaipan, along with handicrafts products based on natural fibers
like ringal, rambans and wax, copper, wood etc. These handicrafts and
handlooms provide livelihood and economic dependence to many
families in Uttarakhand state.

9.9 "Himadri" has been registered as a trademark by UHHDC for its

products. Marketing incentives are being provided to the handloom and
 handicraft products through the 'Himadri' Emporium. These Himadri
Emporium will be established at the main tourist sites. Also, the Hemadri
Emporium will be established in the important cities of the Country
where the Uttarakhand Bhawan / Uttarakhand residence are located. The
State Government will also work in the direction of promoting
handlooms, handicrafts, khadi and local products by linking with tourism.

9.10 It has been decided to establish 'Hari Ram Tamta Shilpa Unnayan
Sansthan' for the revival, development and up gradation of conventional
schemes. This institute will be developed as an excellent institution for
the up gradation of traditional schemes. Work will also be done on
conventional instrumental instruments such as Dhol-Damau, religious
items of daily use, as well as preservation and revival of the methods of
construction of symbols, memento, agricultural implements etc. used on
the occasion of religious events etc.

9.11 "Souvenir Development" based on traditional crafts and local row

material, will be given priority. Under the joint project of NID and
UHHDC, the design innovation has been started on the craft based
Souvenir Vikas Yojana. In its first phase, four conventional crafts were
worked out. The project will be expanded for the next 3 to 5 years,
including the development of other designs, new designs and products.

9.12 UHHDC will conduct exhibition and other marketing programs. Also,
UHHDC will be participating in various national and international
programs. In addition, efforts will be made to promote handloom,
handicrafts and khadi products. Appropriate schemes will be modified to
increase the marketing exposure through the participation of the weavers
and artisans of the state through participation in fairs and exhibitions.
Efforts will be made to establish the Himadri and Khadi Emporium with
 the joint use of Khadi and UHHDC's marketing infrastructure. Urban
Haats will be established at appropriate places.

9.13 UHHDC will work to develop the craft manufacturing villages in the
form of ' Shilp Gram'. These Craft Villages will be developed as tourism
spots and will be record on tourist map.

9.14 The special design and product of the state will be registered under the
intellectual property rights as Geographical Indications. Documentation
of Various crafts will also be done.

9.15 Under the UHHDC, training programs will be imparted through

Master Craftsmen / Master Weavers. Weavers and researchers will also
be counted, so that the identity card can be issued by UHHDC by
integrating their details. Textbooks and school bags will be provided to
the children of weavers and researchers registered on the basis of
availability of financial limits by the State Government. Financial
assistance will also be provided to weavers and craftsmen in the form of
travel allowance, daily allowance etc. to participate in various fairs and
exhibitions organized by UHHDC under state and other states.

9.16 Various training programs will be organized by UHHDC, during the

internship / project / study For the students of various textile, design,
handicraft, handloom and other similar business and related institutions
such as NID, IICT, NIFT etc.

10. Control / monitoring system for policy implementation

10.1 Empowered Committee: - An Empowered Committee of the State

Government will be constituted under the chairmanship of Chief
Minister, in which the Vice President, Secretary, Members shall be as
follows:
 Hon’ble Chief Minister, Uttarakhand Chairman
Hon’ble Minister Micro, Small and Medium Enterprises, Vice Chairman
Uttarakhand.
Chief Secretary, Government of Uttarakhand Member
Additional Chief Secretary / Infrastructure Development Member
Commissioner, Government of Uttarakhand
Principal Secretary / Secretary, Department of Industrial Member
Development, Government of Uttarakhand
Principal Secretary / Secretary, Finance,] Member
Government of Uttarakhand
Principal Secretary / Secretary, Environment, Member
Government of Uttarakhand
Principal Secretary / Secretary, Labour, Member
Government of Uttarakhand
Director, Industries, Directorate of Industries, Uttarakhand Member
Managing Director, SIIDCUL, Uttarakhand Member
Deputy General Manager, SIDBI, Uttarakhand Member
Regional General Manager, RBI Member
General Manager, SBI / Coordinator SLBC, Uttarakhand Member
Maximum 03 members from State-level Micro, Member
Small and Medium enterprises associations.
Principal Secretary / Secretary, Micro, Small and Member Secretary
Medium Enterprises

10.2 Coordination and Monitoring Committee: - Coordination and

Monitoring Committee under the chairmanship of Chief Secretary for
coordination and monitoring at the state level will be constituted as
follows:

Chief Secretary, Government of Uttarakhand Member

Additional Chief Secretary / Infrastructure Development Commissioner, Member
Government of Uttarakhand
Principal Secretary / Secretary, Department of Industrial Development, Member
Government of Uttarakhand
Principal Secretary / Secretary, Finance,] Member
Government of Uttarakhand
Principal Secretary / Secretary, Environment, Member
Government of Uttarakhand
Principal Secretary / Secretary, Labour, Member
Government of Uttarakhand
Commissioner, Commercial Tax, Uttarakhand Member
Managing Director, UPCL, Uttarakhand Member
Managing Director, SIIDCUL, Uttarakhand Member
 Deputy General Manager, SIDBI, Uttarakhand Member
Regional General Manager, RBI Member
General Manager, SBI / Coordinator SLBC, Uttarakhand Member
Maximum 05 members from State-level Micro, Member
Small and Medium enterprises associations.
Principal Secretary / Secretary, Micro, Small and Member
Medium Enterprises Secretary
Director, Industries, Directorate of Industries, Uttarakhand Member

10.3 Meeting of the Empowered Committee will be held in six months and
the meeting of the Coordination and Monitoring Committee will be held
quarterly. The above committees will be authorized for:

 Continuous monitoring and control of the implementation of the current

policy.
 Monitoring / control of compliance with purchase and price-preference
policy by government /departments and undertakings.
i. Function of Single Window System and District Udyog Mitra.
ii. Methodology of Micro, Small Enterprises, facilitation Council.
iii. The progress of the simplification of the Self-certification process
 The Principal Secretary / Secretary of any Organization can be invited to
the meetings of the Empowered Committee called for the related matter/
subject. The Empowered Committee can take the help of a third party
expert organization with an objective of simplifying the procedure and
evaluating the effect and purpose of the provisions of the said policy.
 The Empowered Committee will monitor the implementation of the
decisions given by the RBI, the Empowered Committee and SLBC on
issues relating to Micro, Small and Medium Enterprises such as demand
of financial resources and supply, infrastructure products, central and state
government schemes and other issues of micro, small and medium
enterprises related to finance and development.
 I. Review of financial demand and supply of Micro and Small
Enterprises – on gross and Per capita basis.
II. Credit flow to private agencies to establish industrial estates.
III. Coverage of micro and small enterprises under credit guarantee
fund trust scheme.
IV. The beneficiary focused and cluster development scheme run by the
State / Central government.
V. Financial assistance schemes in handloom / handicrafts sector.

In this matter, detailed directions will be issued separately.

Yours faithfully,
Principal Secretary
M.S.M.E.
Endorsement Number: 184(1)/vii-2-15/146-MSME/2013, dated as above

Copies: - To the following, for the information and necessary action:-

3. Secretary, to the Governor, Uttarakhand.

4. Principal Secretary, Hon’ble Chief Minister, Government of
Uttarakhand.
5. Private Secretary, Hon’ble Minister, Department of Micro, Small and
Medium Enterprises, Government of Uttarakhand.
6. Chief Secretary, Government of Uttarakhand.
7. Additional Chief Secretary and Infrastructure Development
Commissioner, Government of Uttarakhand.
8. Additional Chief Secretary and Commissioner Forest and Rural
Development, Government of Uttarakhand.
9. All Principal Secretaries / Secretaries / In-Charge Secretary,
Government of Uttarakhand.
10. All Heads of Departments, Uttarakhand
11. Director, Industries, Directorate of Industries, Uttarakhand.
12.Managing Director, SIIDCUL, Dehradun
13.Chief Resident Commissioner, Uttarakhand, New Delhi
14.Chief Investment Commissioner, Uttarakhand, New Delhi
15.Secretary, Gopan, Government of Uttarakhand.
16. All Regional Managers, Nationalized Banks, Government of
Uttarakhand.
17.Guard file.

By Order,

Under Secretary
M.S.M.E.