Page 33 - NIS English February1-15

Cabinet Decisions

Industrial Development

to be promoted in J&K

With its mantra of Sabka Saath, Sabka Vikas, the Government has given a big push
to the development of Jammu & Kashmir, which was neglected for several decades.
For the first time a promotion scheme for industrial development is being taken to
the block level in J&K. The Government will be giving Rs 28,400 Crore in the next 15
years under the new scheme to open up doors for development

lDECISION: Proposal for Industrial Development
of Jammu & Kashmir with a total outlay of Rs
28,400 Crore approved.
Rs 112 Crore have been disbursed so far under
various schemes.
lBENEFITS: The Narendra Modi Government
has opened doors of development for Jammu &
Kashmir. The initiative taken by the Government
will encourage manufacturing of various domestic l Units with an investment of up to Rs 50 Crore
products and provide various services which will will be eligible to avail this incentive. Maximum
reduce dependency of J&K on imports and expand limit of incentive is Rs 5 Crore and Rs 7.5 Crore
capacity of exports. The new scheme has been in Zone A & Zone B, respectively
made attractive for big and small MSME units. l Capital Interest subvention at rate of 6 per
cent per annum for maximum 7 years on loan
For the industrial development of Jammu & amount of up to Rs 500 Crore for investment in
Kashmir, the financial outlay of the proposed manufacturing and service sector
scheme is Rs 28,400 Crore for the scheme period l GST Linked Incentive of 300 per cent of
2020-21 to 2036-37. This is how implementation the eligible value of actual investment in
of the scheme will help the Union Territory: manufacturing and service sector for 10 years
l A fresh thrust is on job creation with emphasis l All existing units to get working capital interest
on skill development and sustainable incentive at rate of 5 per cent per annum for
development by attracting new investment and maximum 5 years. Maximum limit of incentive is
nurturing existing industrial ecosystem Rs 1 Crore
l The proposed scheme is likely to attract l Jammu & Kashmir is emerging as the most
unprecedented investment and give direct favoured investment destination. Environment
and indirect employment to about 4.5 Lakh for industrial development will be created with
people. Industrialisation will help job creation these initiatives of the Government
in agriculture, horticulture, silk industry, fishery, l The objective of this scheme is to enable Jammu
animal husbandry and dairy industry & Kashmir for competition at national level

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