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

The Centre Tuesday announced the New Central Sector scheme for Jammu and Kashmir would continue up to 2037. However, the period of realization of incentives under the scheme and budget allocation for the same—announced in 2021 following the abrogation of Article 370 and bifurcation of the erstwhile state into two Union Territories—remains the same at Rs 28,400 crore.

Sources said the continuation of the scheme till 2037, announced in the Union Budget, is to encourage more businesses to invest in Jammu and Kashmir. However, keeping the same budget allocation may come as a disappointment to the UT administration.

“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.