Himachal Pradesh is Power Surplus State. It accounts for nearly a quarter of harness able hydropower potential of India with 5 perennial rivers flowing through the state. Himachal Pradesh is the leader in hydropower generation in India.

The Himachal Pradesh Government has the following focusing sectors:-

  1. Agri-food processing, tourism
  2. Wellness-healthcare
  3. Information Technology
  4. Pharmaceuticals
  5. Hydro & renewable energy
  6. Housing and Urban Development
  7. Education & skill development

There are following reason of investing in Himachal Pradesh

  • Net exporter of power with 100% renewable energy
  • Fruit & Vegetable Bowl of India: Ranks 2nd in Apple & Almond production
  • 54th on the World Economic Forum Travel & Tourism Development Index (2022)
  • Himachal Pradesh, HLC Green Energy sign MoU; investments of INR 4,000 cr expected
  • Su-Kam Power to invest Rs 300 crore to set-up Energy Storage Park in Himachal Pradesh.
  • The Himachal Pradesh government has decided to set up an investment bureau with the aim to scale up the ease of doing business and minimise delay in getting requisite approvals through the single-roof facilitation mechanism.
  • ADB, India sign $130 million loan to promote horticulture in Himachal Pradesh

There are following incentives provided by Himachal government to the investors:-

Incentives for Small and Medium Enterprises (MSME) and Large scale units

  • MSME companies (in the case manufacturing enterprises) investing an amount of up to Rs.10 Crore in building plant and machinery in the case of MSME companies (in the case of a specified category of service enterprise) investing an amount of up to Rs.5 Crore in instruments would be granted to avail financial benefits by the State Government.
  • They are: subsidy towards the cost of preparation of detailed project report & obtaining certification
  • Incentives related to land and industrial sheds
  • Easy Payment schedule of land or shed premium
  • Concessional rate on Stamp Duty and registration fee
  • Providing transport subsidy
  • Assistance for set-up pertaining to water conservation, effluent treatment plant, and electrical power supply in compliance with Environment, Health and Safety Standards
  • Net SGST payback (subject to specific conditions)

Incentives for Anchor Enterprises

Incentives in the form of concession are provided to enterprises with the rate or premium fixed applicable for:

  • 50% for Industrially developed lands and 60% for Industrially developing lands
  • 75% for Tribal areas, Industrially undeveloped sectors & panchayats
  • These concessionary rates are given to enterprises if they began their operations within 3 years of handing over of possessed Such enterprises are granted for easy payment of land premium like MSME industries.
  • Incentive for repayment of Net SGST paid for 7 years up to a maximum of 80% of Fixed Capital Investment
  • Stamp Duty & Registration fee pertaining to conveyance deed or lease deed at the rate of: 50% for industrially developed lands/30% for industrially developing lands/20% for Tribal areas, industrially undeveloped sectors & panchayats
  • Entire costs are reimbursed in the form of incentives for a period of 5 years for transportation of raw materials and finished goods.

Other Incentives

  • Assistance for Patent Filing and use of green fuel
  • Incentives to EOUs for Promotion of Export
  • Concessional rate of electricity charges
  • Incentive, concessions, and facilities for creation and up gradation of Industrial Infrastructure by private investors
  • Incentives for Handloom and Handicrafts


Himachal Pradesh have the various focusing sector like Agri-food processing, tourism, Wellness-healthcare & Ayush, Information Technology, Pharmaceuticals, Hydro & renewable energy, Housing and Urban Development and Education & skill development.