HP Easy Payment Land/Shed Scheme — Interest-Free Instalments — Frequently Asked Questions
Answers to the questions founders most often ask about HP Easy Payment Land/Shed Scheme — Interest-Free Instalments — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
Which enterprises can use the HP Easy Payment Land/Shed Scheme?
MSMEs, Large Enterprises and Anchor Enterprises are all covered. The only condition is that the enterprise operates in Himachal Pradesh or intends to set up or expand a unit there. If you are applying in the MSME category, you must be registered as an MSME.
How much of the premium do I have to pay before taking possession?
It depends on your category. MSMEs and Anchor Enterprises pay 12% of the premium upfront. Large Enterprises pay 15%. The remaining amount is then cleared through annual instalments.
Do I have to pay interest on the instalments?
No. The instalments are interest-free. MSMEs and Anchor Enterprises get 8 equal annual instalments, and Large Enterprises get 5, with nothing added to the deferred amount for interest.
Does the scheme give a cash grant or subsidy?
Neither. You still pay the full premium for the land or shed — you simply pay it across several years instead of in one go. The benefit is the working capital you retain and the interest you never have to pay.
Do I need DPIIT recognition or MSME registration to apply?
DPIIT recognition is not required. MSME registration is required only if you are applying under the MSME category, in which case a valid Udyam registration is expected as part of your papers. Large and Anchor Enterprises do not need to be MSME-registered.
Does the scheme take equity in my company?
No. It is a payment deferral on land or shed premium, not an equity investment, so no shareholding is diluted and no stake is taken in your business.
Is there an application deadline?
No fixed deadline applies. Applications run on a rolling basis throughout the year, so you can file once your land or shed allotment is in hand.
How do I apply, and what documents are needed?
Applications go through the incentive process laid down under the Himachal Pradesh Industrial Investment Policy 2019, and the state's online services portal at https://emerginghimachal.hp.gov.in/online-services is the entry point. Keep ready your project proposal, a detailed financial plan, your enterprise registration documents such as Udyam registration if you are applying as an MSME, and the land or shed allocation details. The concerned authority checks eligibility and the viability of the project, and on approval you are informed of your instalment schedule and the procedure for taking possession.
Can an existing unit that wants to expand in Himachal Pradesh use this scheme?
Yes. The scheme covers enterprises that are establishing operations in the state as well as existing units that are expanding, provided they fall under the MSME, Large or Anchor category.
What is the objective behind this payment schedule?
It is meant to lower the entry cost of acquiring industrial infrastructure in Himachal Pradesh, encourage fresh investment and expansion, keep working capital free for operational needs, and in turn support industrial activity and job creation in the state.
Who is eligible to apply for HP Easy Payment Land/Shed Scheme — Interest-Free Instalments?
HP Easy Payment Land/Shed Scheme — Interest-Free Instalments is open to startups at any stage. It is open to startups registered anywhere in India.
Who offers HP Easy Payment Land/Shed Scheme — Interest-Free Instalments?
HP Easy Payment Land/Shed Scheme — Interest-Free Instalments is offered by Department of Industries, Government of Himachal Pradesh (Startup Himachal), a government body. It is provided as non-dilutive funding.
← Back to HP Easy Payment Land/Shed Scheme — Interest-Free Instalments overview