NEW DELHI: Government has notified new industrial development schemes for Jammu & Kashmir, Himachal Pradesh and Uttarakhand to boost industrialisation , providing cheaper access to credit and interest incentive.The Industrial Development Scheme for Himachal Pradesh (HP) & Uttarakhand, 2017 will run for five years from April 1, 2017 to March 31, 2022. The Industrial Development Scheme for Jammu and Kashmir, 2017 will be effective from June 15, 2016 to March 31, 2022. All new industrial units undertaking substantial expansion in manufacturing sector and services sector including bio-technology and hydel power generation Units up to 10 MW will be eligible for the incentives. There is a negative category of goods that will not be eligible for incentives.The notification issued by the government said that the units in the state will be provided central capital investment incentive for access to credit at the rate of 30% of the investment in plant and machinery with an upper limit of Rs 5 crore.“The project cost will need to be appraised by a Scheduled Commercial Bank or Financial Institution before the proposal of assistance is approved by the Empowered Committee of DIPP,” the notification said.The units should start commercial production within 18 months of approval. The units will be eligible for an interest incentive of 3% on working capital credit advanced by the scheduled banks or central or state financial institutions for first five years from the date of commencement of commercial operation While examining the proposals for incentive, government will consider factors such as cost disadvantage, project viability, bankability, employment generation and promoters’ risk capital.Preference will also be given to eligible industrial units under the micro, small and medium enterprises. Government will form an empowered committee chaired by secretary, Department of Industrial Policy and Promotion, secretaries of department of expenditure, representative of think-tank NITI Aayog and secretaries of the concerned ministries and the chief secretary of the state, for selection of beneficiaries under the scheme.The government notification also stated that all eligible new industrial units and existing industrial units on their substantial expansion located in these states will be eligible for reimbursement of 100% insurance premium on insurance of building and plant & machinery for a maximum period of five years from the date of commencement of commercial operation.