New Industrial Development Scheme for Jammu and Kashmir (Central Sector Scheme)

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New Industrial Development Scheme for Jammu and Kashmir (Central Sector Scheme)

New Industrial Development Scheme for Jammu and Kashmir (Central Sector Scheme)

  • The new Industrial Development Plan, 2021 for Jammu and Kashmir has been prepared by the Government of India for industrial development in the Union Territory of Jammu and Kashmir.
  • For this, the Cabinet Committee on Economic Affairs has approved the proposal of Central Sector Scheme of Industrial and Internal Trade Promotion Department for the industrial development of Jammu and Kashmir.

Central Sector Scheme:

  • These schemes are 100 percent funded by the central government. These are implemented by the Central Government. These plans are mainly made on the subject of the Union List.
  • The Department of Internal Trade Promotion is a department functioning under the Ministry of Commerce and Industry.

About the scheme:

  • The scheme aims to take industrial development up to the block level in the Union Territory of Jammu and Kashmir and is the first industrial incentive scheme launched by the Government of India at the block level.
  • The scheme proposes to attract working capital at the rate of 5% for 5 years for attracting new investment and for the development of existing industries in Jammu and Kashmir.

Objective of the scheme:

  1. The main goal of this scheme is to generate employment, which can lead to socio-economic development of the region.
  2. Apart from this, the objective of the scheme is to develop the surveys manufacturing as well as service sector in Jammu and Kashmir.

Salient features of the scheme:

  1. The scheme has been made attractive for both small and large units.
  2. It is an effort made by the Government of India for sustainable and balanced industrial development in the entire Union Territory.
  3. The scheme has been made commensurate with ease of trade by incorporatingGST related incentives. The GST incentive will ensure reducing compliance burden without compromising transparency.
  4. The scheme has nothing to do with GST reimbursement or withdrawal, but instead uses the total GST to determine the eligibility for industrial incentives to compensate for the loss of Union Territory of Jammu and Kashmir.

Major Impact and Employment Generating Potential:

Under this scheme, fundamental changes will be made in the present industrial environment of Jammu and Kashmir by creating employment, skill development and attracting new investment.

  1. Jammu and Kashmir will be able to compete with the industrially developed state / union territory of the country at the national level.
  2. The proposed scheme will attract unexpected investment and about 4.5 lakh persons will get direct and indirect employment.
Target:
  • The goal of this scheme is to ensure industrial development up to the block level in the Union Territory of Jammu and Kashmir. It is the first industrial incentive scheme of the Government of India and will promote sustainable and balanced industrial development in the entire Union Territory.
  • The total outlay of the proposed scheme for the period 2036-37 (total 17 years) from the year 2020-21 is Rs 28,400 crore. So far, Rs 1,123.84 crore has been given under various special package schemes.
Incentives under the scheme:

Under this, there are capital investment incentives in J&K, GST related incentives: capital interest rebate: working capital interest incentives etc.

Source: PIB.

 

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