For the promotion of industry, especially in far-flung areas of Jammu and Kashmir, the Centre has approved a new industrial development scheme for the Union Territory with a total outlay of Rs 28,400 crore.
Announcing this Thursday, Lt Governor Manoj Sinha said the scheme will remain in force from the date of its notification till 2037. The government, he said, aims to take industrial development in Jammu and Kashmir to the block level.
“The scheme will encourage new investment, substantial expansion and also nurture the existing industries in the Union Territory. It will also provide employment to 4.5 lakh people besides leading to equitable, balanced and sustainable socio-economic development of the region,” the L-G said.
“The scheme will go a long way in ushering in an era of socio-economic development of the region and for catering to the aspirations of people,” he said.
The new scheme provides for capital investment incentive at the rate of 30 per cent in Zone-A and 50 per cent in Zone-B on investment made in plant and machinery (in manufacturing), or construction of building and other durable physical assets (in service sector).
The L-G said Zone-B includes far-off areas and will receive higher incentives so as to ensure equal opportunities of growth in far-flung areas and major towns.
The smaller units with an investment up to Rs 50 crore will be eligible for the incentive, he said, adding that the maximum incentive available in Zone-A areas is Rs 5 crore and in Zone-B areas Rs 7.5 crore.
The scheme provides for 6 per cent capital interest subvention for a maximum of seven years on loans up to Rs 500 crore for investment in plant and machinery (in manufacturing), or construction in building and all other durable physical assets (in service sector) for 10 years, he said.
It also provides for a GST-linked incentive as per which financial incentive will be based on Gross GST to ensure less compliance burden without compromising on transparency, the L-G said. This will incentivise output up to 300 per cent of the eligible value of actual investment made in the plant and machinery (in manufacturing), or construction in building and all other durable physical assets (in service sector), he added.
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