§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
- 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.
- Unit must register with Industries & Commerce Department, Ladakh; date of production authenticated by GM, DIC.
- Units availing overlapping Government of India incentives are not eligible for the same benefit.
- Units without required environmental clearance / consent to establish and operate are not eligible.
- 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.
- New units and existing units irrespective of substantial expansion.
- 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
- Claimed annually; bills to be submitted by end of the same year (extendable 3 months with Director's approval).
- Goods with perpetual cost disadvantage (e.g. perishables) may get it beyond 5 years - to be considered in next policy.
- 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
Register the unit with Industries & Commerce Department, Ladakh through the GM, DIC (Leh or Kargil).
- 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
- Ladakh Sustainable Industrial Policy 2022-27 - S.O. 02 dated 17 Jan 2023 (UT Ladakh, Industries & Commerce Dept)
- Draft Procedural Guidelines of Ladakh Sustainable Industrial Policy 2022-27 - public notice (6 Aug 2024)
- 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.
