HP Land Use Fee Exemption
Department of Industries, Government of Himachal Pradesh (Startup Himachal) · Central government
Himachal Pradesh exempts eligible MSMEs and Large Enterprises in specified Category B and C industrial areas from 100% of Change in Land Use fees.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Government of Himachal Pradesh offers an exemption on the Change in Land Use fee through its Industrial Investment Policy 2019. The incentive applies to Micro, Small and Medium Enterprises (MSMEs) as well as Large Enterprises that operate in areas classified as Category B and C.
Under this provision, eligible businesses are fully exempted from paying the Change in Land Use fee. This lowers both the upfront investment and the running costs for firms setting up or expanding operations in these zones.
The exemption forms part of the state's wider effort to draw in and hold on to industrial investment, simplify regulatory compliance, and advance economic development across Himachal Pradesh.
By directing industries towards the specified geographic zones, the measure seeks to encourage more even regional growth and generate employment within the state.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Himachal Pradesh
- Micro, Small, and Medium Enterprises (MSMEs) holding registration on the Udyam registration portal are eligible. - Large Enterprises, as defined under the Himachal Pradesh Industrial Investment Policy 2019, are eligible. - The enterprise must either be situated in, or be setting up a new unit in, areas notified as Category B and Category C within Himachal Pradesh.
How to apply
Under the Himachal Pradesh Industrial Investment Policy 2019, this exemption is sought within the main application process. Enterprises that qualify must:
- Submit applications for the industrial approvals and clearances stipulated by the state government. - When applying for land use change, provide the documentation needed to establish status as an MSME or Large Enterprise operating in Category B or C areas. - For new industrial projects or expansions, the 100% exemption on the Change in Land Use fee is granted automatically once eligibility is verified during the approval process.
The official Incentives Guide carries additional information.
Frequently asked questions
What is the Exemption on Change in Land Use Fee?
Under the Himachal Pradesh Industrial Investment Policy 2019, industrial units are granted a full waiver of the land use conversion fee.
Which types of enterprises are eligible for this exemption?
MSMEs and Large Enterprises qualify if they are based in, or setting up units in, the notified Category B and C areas of Himachal Pradesh.
What are Category B and C areas?
The Government of Himachal Pradesh designates certain industrial zones and backward areas under its industrial policy, and units located there generally receive a range of incentives intended to draw industrial development to those regions.
Is there a maximum amount for the fee exemption?
The full Change in Land Use fee is waived, so no part of it is payable. Since the fee differs from project to project, no monetary ceiling applies to the amount exempted.
How do I apply for this exemption?
Under the Himachal Pradesh Industrial Investment Policy 2019, the exemption is sought through the usual application route for industrial projects and land use changes, and eligibility is determined when your industrial project is approved.
Does this program provide direct cash funding?
No — this programme offers a fee exemption, meaning a payment is waived, which is a financial benefit rather than direct cash funding or a grant.
Sectors
- Government Scheme
- Himachal Pradesh
- Land Use
- Fee Exemption
- Msme
Details last verified on 16 September 2026. Source: the issuer's published information.