§1Who it is for

  • New and existing industrial units in Ladakh sending finished goods out of Ladakh

Useful if

Apricot, sea-buckthorn, pashmina and other Ladakh producers selling in India.

Do not spend time on it if

Units selling only inside Ladakh.

§2Eligibility

  1. Eligible units: new manufacturing units (except Negative List), new service units on the Positive List, existing units undertaking substantial expansion (25% or more additional investment), and existing units for specified incentives.
  2. Unit must register with Industries & Commerce Department, Ladakh; date of production authenticated by GM, DIC.
  3. Units availing overlapping Government of India incentives are not eligible for the same benefit.
  4. Units without required environmental clearance / consent to establish and operate are not eligible.
  5. Negative list includes tobacco, pan masala, all plastic carry bags, cement, steel and steel rolling, salt/stone/lime (GST Ch 25), ores (Ch 26), explosives (Ch 36), arms (Ch 93), refineries, coke/fly ash, gold, molasses, marble/granite, power plants above 10 MW except renewable.
  6. New units and existing units irrespective of substantial expansion.
  7. Only one of Transport Subsidy or Export Subsidy (6.7) can be taken.

§3Benefits

  • 50% of air freight on finished goods from Ladakh to any destination in India, max Rs 5 lakh per unit per year, for up to 5 years.

§4Norms — pattern of assistance

  1. Claimed annually; bills to be submitted by end of the same year (extendable 3 months with Director's approval).
  2. Goods with perpetual cost disadvantage (e.g. perishables) may get it beyond 5 years - to be considered in next policy.
  3. Draft guidelines: District Level Committee (GM DIC) approves cases up to Rs 10 lakh; Directorate Level Committee Rs 10-25 lakh; sanction within 7 days of approval and disbursal within 7 days of sanction subject to funds; 10% of district-approved cases audited before payment; all machinery purchases via banking channels.

§5Documents

Tick each one as you get it ready.

Common Application Form

Proof of payment (bank statement)

§6How to apply

  1. 1

    Register the unit with Industries & Commerce Department, Ladakh through the GM, DIC (Leh or Kargil).

  2. 2

    File the claim on the Common Application Form with the checklist documents to the GM, DIC.

§7Pros and cons

Merits

  • Halves air cargo cost, the main cost handicap for Ladakh producers (policy 6.3).

Demerits

  • Cap Rs 5 lakh a year; road freight is not covered in the policy text (draft guidelines mention air or road only for export subsidy).

→Related schemes

Need help with Ladakh air freight subsidy?

Eligibility check, DPR and application file — ask us on WhatsApp.

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. Ladakh Sustainable Industrial Policy 2022-27 - S.O. 02 dated 17 Jan 2023 (UT Ladakh, Industries & Commerce Dept)
  2. Draft Procedural Guidelines of Ladakh Sustainable Industrial Policy 2022-27 - public notice (6 Aug 2024)
  3. ladakh.gov.in - Awareness workshop on Ladakh Sustainable Industrial Policy 2022-27, DIC Leh (13 Jan 2026)

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.