Srinagar, Jan 7: What does the new Industrial Development Scheme announced by the Lieutenant Governor, Manoj Sinha, on Thursday for Jammu and Kashmir entail?
While reactions about the scheme from J&K’s business and industrial chambers and associations are yet to come by, more details of the new investment promotion scheme have emerged.
The scheme, approved with a total outlay of Rs. 28,400 crore upto the year 2037, entails the following incentives for new investments in J&K:
1. Capital Investment Incentive at the rate of 30% in Zone A and 50% in Zone B on investment made in Plant & Machinery (in manufacturing) or construction of building and other durable physical assets (in service sector) will be made available. Units with an investment upto Rs. 50 crore will be eligible to avail this incentive. Maximum limit of incentive is Rs 5 crore and Rs 7.5 crore in Zone A & Zone B, respectively.
2. Capital Interest subvention: At the annual rate of 6% for maximum 7 years on loan amount up to Rs. 500 crore for investment in plant and machinery (in manufacturing) or construction of building and all other durable physical assets (in service sector).
3. GST Linked Incentive: Financial incentive based on Gross GST. This will incentivize output upto 300% of the eligible value of actual investment made in plant and machinery (in manufacturing) or construction in building and all other durable physical assets (in service sector) for 10 years. However, the amount of incentive in a financial year will not exceed one-tenth of the total eligible amount of incentive.
4. Working Capital Interest Incentive: All existing units at the annual rate of 5% for maximum 5 years. Maximum limit of incentive is Rs 1 crore.
Other incentives
Smaller units with an investment in plant & machinery upto Rs. 50 crore will get a capital incentive upto Rs. 7.5 crore and get capital interest subvention at the rate of 6% for maximum 7 years.
Employment generation targets
It is anticipated that the proposed scheme is likely to attract unprecedented investment and give direct and indirect employment to about 4.5 lakh persons. Additionally, because of the working capital interest subvention, the scheme is likely to give indirect support to about 35,000 persons.
New Industrial Development Scheme for J&K will give a boost to domestic manufacturing in the region & help J&K in becoming AatmaNirbhar. The Scheme will encourage new investment, substantial expansion and also nurture the existing industries in J&K, he maintained.