Will help create 4.5 lakh jobs, Give boost to UT's industrial potential
NL Correspondent
Jammu Tawi, Jan 07: Jammu and Kashmir's Lieutenant Governor Manoj Sinha Thursday announced the GoI approved Rs 28400 Cr mega “Industrial Development Package-2021” for the UT's industrial growth, investments and job creations in the industrial sector.
LG Sinha, addressing a press conference, said that the Union Cabinet on January 6 sanctioned the huge Industrial Development Package-2021 for J&K's industrial sector that has been craving for the real support from the Centre. “The package aims at providing a huge boost to the existing industrial sector, setting up new units, creating 4.5 lakh jobs and at least 20,000 Cr investments. The package will remain in force for 17 years i.e. till 2037,” he said.
“This is a historic Industrial package that will give a boost to the industrial sector in J&K, create employment and pave way for outside investments as well,” he said.
He said the package will act as a big relief to the existing industrialists and will cover the manufacturing units as well as the service sector as well that includes the Tourism and IT sector.
While giving details of the scheme, the LG Sinha said the scheme as a major push to the economy of the region and providing huge opportunities of employment to the people of J&K.
“The main purpose of the scheme is to generate employment beyond government jobs in both manufacturing and service sectors which directly leads to the socio-economic development of the region,” he said, adding that “the scheme is being implemented with the vision that industry and service led development of J&K needs to be given a fresh thrust.” The incentives that would be available under the scheme include capital investment incentive at the rate of 30% in Zone A and 50% in Zone B on investment made in Plant & Machinery (in manufacturing) or construction of building and other durable physical assets (in service sector) will be made available. “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 & Zone B, respectively,” he said.
The LG said that Capital Interest subvention is also another benefit of the scheme. “At the annual rate of 6% for maximum 7-years on loan amount up to Rs. 500 crore for investment in plant and machinery (in manufacturing) or construction of building and all other durable physical assets (in service sector),” he said.
As far the GST Linked Incentive, the LG said that Financial incentive will be based on Gross GST. “This will incentivize output upto 300% 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,” the LG said. On the Working Capital Interest Incentive, he said all existing units at the annual rate of 5% for maximum 5 years. Maximum limit of incentive is Rs 1 crore.
KEY FEATURES OF THE SCHEME:
*Scheme is made attractive for both smaller and larger units. Smaller units with an investment in plant & machinery upto Rs. 50 crore will get a capital incentive upto Rs. 7.5 crore and get capital interest subvention at the rate of 6% for maximum 7 years.
* The scheme aims to take industrial development to the block level in UT of J&K, which is the first time in any Industrial Incentive Scheme of the Government of India and attempts for a more sustained and balanced industrial growth in the entire UT. Remote areas of J&K will see a major impetus through the scheme.
* 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.
* Scheme envisages a greater role of the UT of J&K in registration and implementation of the scheme while having proper checks and balances by having an independent audit agency before the claims are approved.
* Earlier schemes though offered a plethora of incentives. However, the overall financial outflow was much lesser than the new scheme. Whereas, the earlier schemes have provided about Rs 1120 crores in all these years, this scheme shall provide an outlay of Rs 28,400 crores.
Major Impact and employment generation potential:
* Scheme is 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, thereby enabling J&K to compete nationally with other leading industrially developed States/UTs of the country.
* It is anticipated that the proposed scheme is likely to attract unprecedented investment and give direct and indirect employment to about 4.5 lakh persons. Additionally, because of the working capital interest subvention, the scheme is likely to give indirect support to about 35,000 persons.
* The Lt Governor expressed gratitude towards the Hon'ble Prime Minister for approving the New Central Sector Scheme for Industrial Development of Jammu & Kashmir.
The Lt Governor said that it will be ensured that the implementation of the new scheme shall be done in a manner which is friendly and hassle free to the investors. “It will be ensured that entrepreneurs from within J&K and outside find a smooth and progressive ecosystem for their business plans,” he added.
The LG also stated that the administration led by him was working a long and short term strategy for streamlining the power infrastructure in J&K.
“J&K has earned the first slot on road connectivity front and in the near future, every village will be connected through a better road. In 2023, people of J&K will travel in metro for the first time,” he said.
- Amit Shah hails Industrial Package for J&K
New Delhi, Jan 07
Union Home Minister, Amit Shah has hailed the Cabinet Committee on Economic Affairs (CCEA) approval to the Central Sector Scheme for Industrial Development of Jammu and Kashmir, according to the official press release by the Ministry of Home Affairs on Thursday.
In a series of tweets, Amit Shah said, “The Prime Minister, Narendra Modi has started development in Jammu and Kashmir by ridding it of terrorism and separatism. The approval of Rs. 28,400 crore central Sector Scheme for the industrial development of Jammu and Kashmir by the Cabinet illustrates the special place that Jammu and Kashmir hold in the heart of Modi ji.”
The Union Home Minister said, “It is Modiji's visionary leadership as a result of which, for the first time, a scheme is taking industrial development to the block level. This will give a boost to domestic manufacturing and open up the path of employment generation up to the block level. For this, I congratulate Narendra Modi ji.”
Amit Shah said, “This scheme will prove to be a boon for cottage industry, handicrafts, micro, small and medium industries of Jammu and Kashmir. It will spur the setting up of new Micro, Small and Medium Enterprises (MSME) units in the manufacturing and services sector, as well as encourage the expansion of existing units.”
He also said, “This scheme will usher in a new dawn of prosperity in Jammu and Kashmir. It will attract unprecedented investment and will provide employment to about 4.5 lakh people. This will lead to the skill development of youth and strengthen existing industries so that Jammu and Kashmir will become as capable as other regions of the country.”
