§1Policies

§2Incentive pattern

SGST / investment subsidyMSME 60% (A) / 90% (B, C) of net SGST for 7 years, cap 100% FCI; Large 60/80/80%; Anchor 100% for 10 years, cap 250% FCI

13.12.2023 amendment; only on supplies consumed within HP; steel units on older lower rates.

HP Industrial Investment Policy 2019 and Incentive Rules 2019 - consolidated with all amendments up to 08.10.2024 (Emerging Himachal; scanned, read by OCR)
LandMSME land/shed premium concession 50/60/70% (Cat A/B/C); large 25/45/65%; anchor 50/60/75%

Production within 2 years (MSME land) / 3 years (large); 8 interest-free instalments for MSME.

HP Industrial Investment Policy 2019 and Incentive Rules 2019 - consolidated with all amendments up to 08.10.2024 (Emerging Himachal; scanned, read by OCR)
Stamp dutyMSME pays 50% / 30% / 10% of normal stamp duty in Cat A / B / C; large and anchor 50 / 30 / 20%

Change of land use charges waived in Cat B and C.

HP Industrial Investment Policy 2019 and Incentive Rules 2019 - consolidated with all amendments up to 08.10.2024 (Emerging Himachal; scanned, read by OCR)
Interest subsidy3% on term loan for 3 years, max Rs 2/4/6 lakh (MSME) and Rs 10/15/20 lakh (large) a year by category

Special-category entrepreneurs 5% for 5 years, max Rs 3/5/7 lakh.

HP Industrial Investment Policy 2019 and Incentive Rules 2019 - consolidated with all amendments up to 08.10.2024 (Emerging Himachal; scanned, read by OCR)
Electricity dutyConcessional ED for 5 years: 1% small, 3% medium, 5% large, 7% EHT; 1% for units employing over 300 HimachalisHP Industrial Investment Policy 2019 and Incentive Rules 2019 - consolidated with all amendments up to 08.10.2024 (Emerging Himachal; scanned, read by OCR)
Power tariffEnergy charges 15% lower for 3 years for new units; 15% rebate on extra consumption for expanding units

Notified yearly in HPSEB tariff; not binding on the State.

HP Industrial Investment Policy 2019 and Incentive Rules 2019 - consolidated with all amendments up to 08.10.2024 (Emerging Himachal; scanned, read by OCR)
EmploymentRs 1,000 per month per additional Himachali employee above 50, for 10 years, for units with over 80% HimachalisHP Industrial Investment Policy 2019 and Incentive Rules 2019 - consolidated with all amendments up to 08.10.2024 (Emerging Himachal; scanned, read by OCR)
Export / freightIn-state transport subsidy Cat B 3% / Cat C 5% of turnover; EOU export sample up to Rs 1 lakh and 50% trade-fair cost up to Rs 3 lakhHP Industrial Investment Policy 2019 and Incentive Rules 2019 - consolidated with all amendments up to 08.10.2024 (Emerging Himachal; scanned, read by OCR)
Patent & qualityPatent Rs 10 lakh or 75%; quality testing facilities 50%HP Industrial Investment Policy 2019 and Incentive Rules 2019 - consolidated with all amendments up to 08.10.2024 (Emerging Himachal; scanned, read by OCR)
Capital subsidyNo general capital subsidy in IIP 2019; capital infrastructure subsidy only for private industrial parks (25-50%)

MMSY (separate scheme) gives investment subsidy - not confirmed officially.

HP Industrial Investment Policy 2019 and Incentive Rules 2019 - consolidated with all amendments up to 08.10.2024 (Emerging Himachal; scanned, read by OCR)

§3State schemes

More incentives in the policy (10)

Name and benefit are from the policy; the full conditions are not on this page yet — see the policy document.

  • Mukhya Mantri Swavalamban Yojana 2019 (MMSY)Investment subsidy on P&M (rates reported as 25% men, 30-35% women/widows/special categories) and 5% interest subvention for 3 years on projects up to Rs 1 crore - official notification — see the official guideline.; news sources conflict
  • HP IIP 2019 - incentives for handloom and handicrafts10% of yarn cost bought via NHDC; GI/label registration cost reimbursed; 50% of online-portal commission max Rs 1 lakh/yr; 60% logistics cost for own-website sales max Rs 2 lakh/yr; 60% of fair stall rent (max Rs 10,000 in HP / Rs 15,000 outside)
  • HP IIP 2019 - design development-cum-exhibition centresRs 2 crore or 75% of capital cost (lower) plus 75% of recurring cost up to Rs 20 lakh/yr for 5 years
  • HP IIP 2019 - patent and green fuelPatent: Rs 10 lakh or 75% of cost (lower); gas/solar for process or backup: 50%, max Rs 3 lakh
  • HP IIP 2019 - EOU export supportExport sample shipment up to Rs 1 lakh; 50% of brochure and overseas trade fair cost up to Rs 3 lakh
  • HP IIP 2019 - private industrial / theme parksCapital infrastructure subsidy 25%/40%/50% (max Rs 15/20/25 crore) in Cat A/B/C; sector parks 40% (max Rs 10/15/20 crore)
  • HP IIP 2019 - concessional electricity duty and energy chargesED 1%-7% for 5 years by load; energy charges 15% lower for 3 years for new units
  • HP IIP 2019 - service activities added March 2024 (IT parks/data centres, tourism, health/AYUSH/wellness, education, integrated townships)Eligible only for land allotment and land-related incentives
  • HP Logistics Policy 2022Extends IIP 2019, SMFP and Energy Policy 2021 incentives to logistics; EV freight vehicles get MMSY incentives; 5 years from notification
  • Medical Devices Park, Una (Oct 2024 amendment)MSME plot premium concession 10% if production within 2 years; 25% upfront, 75% in 3 annual instalments

§4District zones

In many states the subsidy rate changes with the zone of the district or block.

ZoneCategory A (industrially developed; excludes backward panchayats)

Lowest: MSME SGST 60%; land concession 50%; stamp duty charged at 50%; interest subvention cap Rs 2 lakh; no transport subsidy; CLU charges payable.

Solan: Kanungo circles of Kasauli incl. Industrial Area Parwanoo (Dharampur block); Kanungo circles of Nalagarh and Doon incl. Baddi, Barotiwala, EPIP (Nalagarh block) · Sirmaur: Kanungo circles of Majra and Paonta Sahib incl. Industrial Area Paonta Sahib; Kanungo circles of Nahan incl. Industrial Area Kala Amb

HP Logistics Policy 2022 (Rajpatra 21 June 2022) incl. Annexure I area categories and Annexure II State Mission on Food Processing
ZoneCategory B (industrially developing)

MSME SGST 90%; land concession 60%; stamp duty at 30%; interest cap Rs 4 lakh; transport subsidy 3% of turnover (max Rs 10 lakh, 3 yrs); CLU waived.

Bilaspur: Bilaspur Sadar, Ghumarwin, Jhandutta, Shri Naina Devi Ji · Chamba: Bhattiyat, Chamba · Hamirpur: Hamirpur, Bijhari, Nadaun, Bhoranj, Sujanpur-Tihra, Bamsan · Kangra: Kangra, Rait, Nagrota Bagwan, Panchrukhi, Fatehpur, Lamba Gaon, Baijnath, Nagrota Surian, Dehra, Bhawarna, Paragpur, Indora, Nurpur, Sulah, Dharamshala · Kullu: Kullu, Naggar-Katrain · Mandi: Mandi Sadar, Sundernagar, Balh, Gopalpur, Darang, Chauntra, Dharampur, Bali Chowki, Dhanotu, Nihri, Churag · Shimla: Theog, Mashobra, Basantpur, Narkanda, Totu, Kupvi, Kotkhai · Sirmaur: Rajgarh, Tilordhar, left-out areas of Paonta Sahib and Nahan blocks · Solan: Kandaghat, Kunihar, Solan · Una: Amb, Gagret, Bangana, Una, Haroli

HP Logistics Policy 2022 (Rajpatra 21 June 2022) incl. Annexure I area categories and Annexure II State Mission on Food Processing
ZoneCategory C (tribal areas, backward blocks, all backward panchayats in A and B)

Highest: MSME SGST 90%; land concession 70%; stamp duty at 10%; interest cap Rs 6 lakh; transport subsidy 5% of turnover (max Rs 10 lakh, 5 yrs); CLU waived.

Chamba: Bharmour, Pangi, Tissa, Salooni, Mehla · Kinnaur: Kalpa, Pooh, Nichar · Kullu: Anni, Nirmand, Banjar · Lahaul & Spiti: Lahaul (Keylong), Spiti (Kaza) · Mandi: Seraj, Karsog, Gohar · Shimla: Jubbal, Rohru, Chopal, Chhohara, Rampur, Nankhari · Sirmaur: Pachhad, Sangrah, Shillai · All backward panchayats located in Category A and B areas

HP Logistics Policy 2022 (Rajpatra 21 June 2022) incl. Annexure I area categories and Annexure II State Mission on Food Processing

Schemes for some districts only

  • Transport subsidy (IIP 2019)Category B and C areas only
  • Change of land use charge exemptionCategory B and C areas only
  • Medical Devices Park plot termsUna

→Industrial land in this stateAgency, portal, allotment, lease

§5Famous for

§6Choose your district

For each district: its ODOP product, its subsidy zone and the schemes that run only there.

§7Focus sectors & ODOP

Food processing with links to agro-horticulture (policy objective iv; State Mission on Food Processing)Handloom and handicraftsPharmaceuticals, engineering, electronics, textiles, food processing (existing industrial base described in the policy)Specified service activities incl. IT parks/data centres, tourism, health/AYUSH/wellness, education (Annexure II; 2022 and 2024 additions)Medical Devices Park, Una

ODOP / clusters2 entries

Industrial clusters named in Category A: Baddi-Barotiwala-Nalagarh (BBN, incl. EPIP), Parwanoo, Paonta Sahib, Kala Amb

  • Industrial clusters named in Category A: Baddi-Barotiwala-Nalagarh (BBN, incl. EPIP), Parwanoo, Paonta Sahib, Kala Amb
  • ODOP product list for HP districts not confirmed from an official source

§8Why do business here — and why not

Merits

  • Category C units pay only 10% of normal stamp duty and get 70% off land premium - IIP 2019.
  • MSMEs in Category B/C get 90% of net SGST back for 7 years (13.12.2023 amendment).
  • Concessional electricity duty (1% for small units) for 5 years - IIP 2019.

Demerits

  • IIP 2019 incentives were tied to production starting by 31.12.2025; only short extensions are reported and a new policy is pending (Aug-Oct 2026 reports).
  • Every incentive needs 80% Bonafide Himachali employment, with recovery if breached - IIP 2019.
  • Post-2023 SGST refund only on goods consumed within HP - less useful for units selling to other states.

Still being researched

We could not confirm these points from an official source, so no figure is printed on the page.

Open items8 points pending
  • HP: official notification of the Aug 2026 extension and the new industrial policy — see the official guideline. - status of IIP 2019 after Oct 2026 unknown
  • HP: policy PDF is scanned; figures read by OCR - editor should spot-check (esp. 2022 amendment anchor thresholds, quality cap Rs 5 lakh vs Rs 3 lakh, anchor transport 5% vs 3%)
  • HP: MMSY official notification/guidelines — see the official guideline.; news sources conflict on rates and age limits
  • hp-iip-2019-msme-package: documents not published in policy text
  • hp-iip-2019-large-anchor: documents not published
  • hp-state-mission-food-processing: documents not published
  • hp-cm-startup-scheme-2016: documents not published
  • HP: ODOP products not confirmed; HP Startup Policy updates after 2016 not checked; HP Energy Policy 2021 — see the official guideline.