J&K Clears 53 Industrial Units Worth Rs 1626 cr Under NCS Scheme – 35 for Jammu, 18 in Kashmir

SRINAGAR, OCTOBER 4: The Jammu and Kashmir administration has cleared 53 more industrial units under the New Central Sector Scheme (NCSS), taking the total number of units approved under the scheme to 971.

Of the 53 newly cleared units, 35 have been approved in the Jammu division and 18 in the Kashmir division, official sources said.

The newly approved units are expected to bring an investment of Rs 1,626 crore and generate 2,902 employment opportunities in Jammu and Kashmir. The figures are among those reported by Daily Excelsior in its report on the latest clearances.

The clearance follows approval by the Apex Committee at the Central level for utilisation of around Rs 5,630.74 crore in savings under the Rs 28,400-crore Industrial Development Scheme for Jammu and Kashmir.

Total approved units reach 971

Prior to the latest clearance, 918 industrial units had been approved under the NCSS, with a proposed investment of Rs 12,668 crore and expected employment generation of 48,995 jobs.

The proposed investment in plant and machinery by these 918 units has been estimated at Rs 9,220 crore.

With the addition of the latest 53 units, the total number of approved industrial units has risen to 971.

The newly approved units have a proposed investment of Rs 1,626 crore, including Rs 1,294 crore in plant and machinery. They are expected to create 2,902 jobs.

Officials said the 53 units include some major national companies.

More units may be accommodated

The number of additional industrial units that can still be approved under the NCSS has not yet been finalised, as the exact incentives to be availed by the 53 newly cleared units are still being worked out.

“Once the incentives are calculated, the amount saved will be known and based on that new units, which are in the waiting, will be given nod,” sources said.

The administration expects that some additional units could still be accommodated within the available funds.

Rs 5,630.74 crore savings identified

The Apex Committee, headed by Union Home Minister Amit Shah and including Union Minister for Commerce and Industry Piyush Goyal and Lieutenant Governor Manoj Sinha, had in August approved utilisation of approximately Rs 5,630.74 crore under the NCSS for registering industrial units beyond the 918 already approved.

The UT administration had informed the committee that an estimated Rs 5,630.75 crore could become available under the scheme.

Of this, around Rs 4,551.01 crore was estimated to have become available because of the difference between investment proposed in Detailed Project Reports and the actual final investment made in plant and machinery.

Another Rs 1,079.74 crore was available from the total approved scheme allocation of Rs 28,400 crore.

The committee accordingly decided that the available amount could be used for granting registration to additional industrial units beyond the 918 units already registered.

Savings linked partly to GST rate reduction

Around Rs 3,500 crore of the expected savings has arisen from the reduction in GST rates, according to the information provided to the committee.

The Apex Committee has also permitted fungibility and reappropriation of funds between different incentive components, depending on actual and projected requirements.

These components include Capital Investment Incentive, Capital Interest Subvention, GST-linked Incentive and Working Capital Interest Subvention.

The reallocation, however, will be carried out without increasing or altering the overall approved scheme allocation of Rs 28,400 crore.

Scheme to continue till 2037

The New Central Sector Scheme for Industrial Development of Jammu and Kashmir was launched on April 1, 2021, with an approved outlay of Rs 28,400 crore. The scheme is scheduled to remain operational until 2037.

The registered industrial units will continue to receive incentives under the scheme during the eligible period and are expected to operate across different parts of Jammu and Kashmir, generating employment and supporting industrial activity.

The Jammu and Kashmir administration has also sought an increase in the overall incentive allocation to Rs 75,000 crore to accommodate more industrial proposals awaiting registration, citing the strong response to the scheme.

The Central Government had unveiled the Rs 28,400-crore industrial development package in April 2021 with the objective of accelerating industrialisation in Jammu and Kashmir and generating around three lakh jobs. Subsequent estimates indicated that employment generation could exceed the original target.