The Cabinet Committee on Economic Affairs (CCEA) on Thursday said it has approved a scheme for the industrial development of Jammu & Kashmir. The proposal of Department for Promotion of Industry and Internal Trade for the Central Sector scheme has been approved with a total outlay of ₹28,400 crore up to 2037.
So far, the amount disbursed under various special package schemes is ₹1,123.84 crore.
“The main purpose of the scheme is to generate employment leading to the socio -economic development of the area….The present scheme is being implemented with the vision that industry and service-led development of J&K needs to be given a fresh thrust with emphasis on job creation, skill development and sustainable development by attracting new investment and nurturing the existing ones,” an official statement added.
Under this scheme, companies will get capital intensive incentives, capital interest subvention, working capital incentive and GST-linked incentives. “The scheme is made attractive for both smaller and larger units. Smaller units with an investment in plant & machinery up to ₹50 crore will get a capital incentive of up to ₹7.5 crore and get capital interest subvention at the rate of 6 per cent for maximum seven years,” the statement added.
“The scheme has been simplified on the lines of ease of doing business by bringing one major incentive — GST Linked Incentive — that will ensure less compliance burden without compromising on transparency. It is not a reimbursement or refund of GST but gross GST is used to measure eligibility for industrial incentive to offset the disadvantages that the UT of J&K faces,” the statement added.
Meanwhile, all existing units will be able to avail working capital interest incentive at the annual rate of 5 per cent for five years and the maximum limit of incentive has been set at ₹1 crore.