Shimla (Himachal Pradesh) [India], July 15 (ANI): Himachal Pradesh Industries Minister Harshwardhan Chauhan on Wednesday said the state government is finalising a new industrial policy that will prioritise green industries, food processing, and local product-based manufacturing while discouraging industries with high power and water consumption, such as steel and ethanol units.
Speaking to ANI here, Chauhan said the policy aims to attract environmentally sustainable industries that generate higher employment and revenue while ensuring balanced industrial growth in the hill state.
“Our thrust is on green industries and those sectors that generate maximum employment. Industries that consume excessive electricity and water, such as steel and ethanol plants, will be discouraged under the new policy. Instead, we will promote food processing industries and enterprises based on Himachal’s local products,” Chauhan said.
The minister said the government also plans to allow the private sector to develop industrial areas, a move inspired by successful models in states such as Haryana.
“So far, industrial areas have largely been developed by the Industries Department and HIMUDA/HPIDC. We now intend to open industrial area development to the private sector as well. The policy will provide necessary support, and incentives will be linked to production, encouraging industries that contribute more to manufacturing and employment,” he said.
Chauhan said the government is also considering reducing electricity tariffs for industries to improve Himachal Pradesh’s competitiveness.
“Although industrial power tariffs in Himachal are already slightly lower than those in Punjab and Haryana, we are examining further reductions in the future to attract more investment,” he added.
The minister said the proposed policy would also incorporate stricter environmental norms and promote only clean industries.
“Green industry means industries with environmentally sustainable infrastructure and operations. We will discourage polluting and chemical-based industries, including certain steel, ethanol and chemical units, while encouraging clean manufacturing,” he said.
Highlighting emerging opportunities in the defence manufacturing sector, Chauhan said the government is exploring the creation of a dedicated defence industrial corridor in the state.
“With global geopolitical developments and increasing defence manufacturing in India, several companies have approached us seeking land for defence projects. These projects require large land parcels and relatively isolated locations. We have discussed with the Chief Minister the possibility of establishing a dedicated defence corridor in Himachal Pradesh. Defence manufacturing units are clean industries and have significant employment generation potential,” he said.
The minister said Himachal Pradesh already remains one of India’s major pharmaceutical manufacturing hubs, with nearly 30 per cent of the country’s pharmaceutical production taking place in the state.
“Our previous industrial policy expired in March and has been extended for three months. The new policy is almost ready and is designed to attract new investment while increasing state revenue,” he said.
Speaking about the contribution of industries to the state’s economy, Chauhan said the industrial sector remains one of Himachal Pradesh’s largest sources of employment and revenue.
“Nearly 4.5 lakh people are employed in industries across the state, of whom around three lakh are Himachalis. While some specialised positions require skilled workers from outside the state, industries continue to be one of the biggest employment generators,” he said.
He further said industries contribute substantially to the state’s Goods and Services Tax (GST) collections and are the largest consumers of electricity supplied by the Himachal Pradesh State Electricity Board.
“The industrial sector is extremely important for the state’s economy. It contributes significantly to GST revenues, fuel-related taxes and electricity consumption. The Electricity Board generates around ₹8,000 crore annually, of which nearly ₹5,000-5,500 crore comes from industrial consumers,” Chauhan said.
Despite logistical disadvantages arising from Himachal Pradesh’s mountainous geography and distance from major markets, the minister said the state has developed a strong industrial base.
He added, “Himachal Pradesh may be geographically disadvantaged because industries have to bring raw materials from outside and transport finished goods back to markets. Even so, the state has developed a robust industrial ecosystem. We have some of North India’s largest cement plants and abundant limestone reserves, which also generate substantial mining revenue. We are now looking at ways to further enhance revenue through the new industrial policy.” (ANI)
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