Team News Riveting
The Centre has unveiled a scheme with a total outlay of Rs 28,400 crore upto the year 2037 for Industrial Development of Jammu and Kashmir (J&K).
The move is seen as a big leap forward for the industrial development in the Union Territory (UT) that “integrated” with the rest of the country following the abrogation of Article 370 and 35A in August 2019.
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 employment generation would help misguided youths to join the mainstream of society by shunning violence.
Considering the historic development of reorganization of J&K with effect from October 31, 2019 into UT under the J&K Reorganisation Act, 2019, the present scheme is being implemented with the vision that industry and service led development.
J&K needed 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. The scheme addressed it.
The scheme offers attractive concessions that include capital investment incentives upto 50 per cent, capital Interest subvention at the rate of 7 per cent annual, GST linked incentive upto 300 per cent of the eligible value of actual investment made and working capital interest incentive of 5 per cent.
The scheme is made attractive for both smaller and larger units and will take industrial development to the block level in UT of J&K, which is 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
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.
