SRINAGAR: The government notified the Central sector scheme for ensuring speedy industrial development in Jammu and Kashmir and said the scheme would be effective from April 1 this year until March 31, 2037.
Registration under the “New Central Sector Scheme for Industrial Development of J&K” will commence from April 1, 2021, and continue till September 30, 2024, for a period of three and a half years.
The notification issued by the Ministry of Commerce and Industry’s Department for Promotion of Industry and Internal Trade clarifies that the registration process of new units under the scheme whose projected financial liability reaches 115 per cent of the approved funds would be paused temporarily or permanently subject to availability of additional funds.
“The registration process may be resumed depending on the availability of approved funds,” the notification states.
It adds that merely submitting an application for registration will not entitle any applicant for registration under the scheme.
“No unit will have the right to register under the scheme or claim benefits unless it is specifically approved by the registering authority. The registration will be granted by the registering authority based on scheme guidelines which will consider the prima facie eligibility of the unit and availability of approved funds,” the notification says.
The scheme with an outlay of Rs 28,400 crore up to 2037 was approved by the Cabinet Committee on Economic Affairs on January 7.
It aims to boost block-level development in J&K by offering various incentives to new industry in the UT.
The incentives on offer include capital investment incentive, capital interest subvention incentive and GST-linked incentive.
Capital investment incentive will be offered at the rate of 30 per cent in Zone A and 50 per cent in Zone B on investments made in plant and machinery (manufacturing) or construction of buildings and other durable physical assets (service sector).
Units with an investment up to 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 and Zone B, respectively. Under the scheme the amount of incentive in a financial year will not exceed one-tenth of the total eligible amount of the incentive.
Both smaller and larger units would benefit, news paper The Tribune quoted government sources as having said.
The estimation is that the scheme, by attracting major investments, will give direct and indirect employment to 4.5 lakh persons and additionally on account of working capital interest subvention, it would give indirect support to about 35,000 persons.