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Centre approves new industrial developmental scheme for Jammu & Kashmir

This scheme envisages to provide employment to 4.5 lakh people in the UT

manoj-sinha-jammu-kashmir [File] J&K Lieutenant Governor Manoj Sinha has said that the scheme will give a major push to the economy of the region | PTI

In a major decision of far reaching consequences, the Centre has approved the new Industrial Developmental Scheme for Jammu and Kashmir. This scheme, up to the year 2037 with a total outlay of Rs 28,400 crore, envisages to provide employment to 4.5 lakh people.

The 2021 scheme is aimed at taking industrial development to the block level and far flung areas of the Union Territory.

It is likely to encourage new investment, substantial expansion and also nurture the existing industries in J&K.

It is expected boost the manufacturing as well as service sector in the UT.

The scheme visualises larger role of Jammu and Kashmir in the Indian Economy and development with substantial investment.

J&K Lieutenant Governor Manoj Sinha, in a press conference, said that the scheme will give a major push to the economy of the region and create huge opportunities of employment to people of J&K.

The main purpose of the scheme is to generate employment beyond government jobs in both manufacturing and service sectors and ensure socio-economic development of the region, he added.

He further said that the scheme is being implemented with an emphasis on job creation, skill development and sustainable development by attracting new investment and nurturing the existing ones.

“The scheme has been approved with a total outlay of Rs. 28,400 crore up to the year 2037,” he said.

He said the incentives available under the Scheme include capital investment incentive at the rate of 30 per cent on investment made in Plant & Machinery (in manufacturing) or construction of buildings and other durable physical assets.

All units with an investment up to Rs 50 crore will be eligible to avail the incentive.

The maximum limit of incentive is Rs 5 crore and Rs 7.5 crore in different zones respectively.

For a loan up to Rs 500 for investment in plant and machinery, the annual rate will be 6 per cent for a maximum of seven years.

The scheme is attractive for both smaller and larger units.

It also covers financial incentive based on gross GST which will incentivise output up to 300 per cent 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.

It has been simplified on the lines of ease of doing business by bringing one major incentive (GST-linked) to ensure less compliance burden without compromising on transparency.

The scheme has been introduced to bring about radical transformation in the existing industrial ecosystem of J&K with emphasis on job creation, skill development and sustainable development by attracting new investment and nurturing the existing ones.

The new scheme is the first of its kind and is expected to address the problem of growing unemployment in the UT and reduce dependence on government jobs.

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