New Central sector scheme for J&K to continue till 2037

“The scheme for industrial Development of Jammu and Kashmir shall be effective from the date of issue of notification and up to 31.03.2037 with the total outlay of Rs 28,400 crore during scheme period providing the following Incentives: i. capital investment incentive, ii. capital interest subvention, iii. Goods & Services tax linked incentive (GSTLI) and iv. working capital interest subvention,” announced Finance Minister Nirmala Sitharaman.

In January 2021, the government had announced the New Central Sector Scheme for industrial development in J&K, for which it allocated Rs 28,400 crore to fund incentives such as 300% GST refund on investment, interest subvention on loans, and 30% capital incentive.

“There is no such scheme anywhere in the country. But many large investors feel realizing 300% of GST refund in 10 years in J&K may not be possible…One must understand that big business will remain a bit apprehensive about peace in the Valley and logistical challenges of operating so up north. So, there is an expectation from the government to increase the time period of the scheme as well as the allocation,” said an industry insider.