New Industrial Development Scheme For Jammu & Kashmir (J&K IDS, 2021) approved
Part of: GS Prelims and GS-II – Policies and Interventions & GS-III – Industries
In news
The Cabinet Committee on Economic Affairs (CCEA) has approved a scheme for the Industrial Development of Jammu & Kashmir.
The scheme is approved with a total outlay of Rs. 28,400 crore upto the year 2037.
Key takeaways
It is a Central Sector Scheme for the development of Industries in the UT of J & K.
Objective: To generate employment which directly leads to the socio economic development of the area.
The following incentives would be available under the scheme:
Capital Investment Incentive at the rate of 30% in Zone A and 50% in Zone B on investment made in Plant & Machinery (in manufacturing) or construction of building and other durable physical assets(in service sector) is available.
Capital Interest subvention: At the annual rate of 6% for maximum 7 years on loan amount up to Rs. 500 crore for investment in plant and machinery (in manufacturing) or construction of building and all other durable physical assets (in service sector).
GST Linked Incentive: 300% of the eligible value of actual investment made in plant and machinery (in manufacturing) or construction in building and all other durable physical assets (in service sector) for 10 years. The amount of incentive in a financial year will not exceed one-tenth of the total eligible amount of incentive.
Working Capital Interest Incentive: All existing units at the annual rate of 5% for maximum 5 years. Maximum limit of incentive is Rs 1 crore.
Key Features of the Scheme:
Scheme is made attractive for both smaller and larger units.
Smaller units with an investment in plant & machinery upto Rs. 50 crore will get a capital incentive upto Rs. 7.5 crore and get capital interest subvention at the rate of 6% for maximum 7 years.
The scheme aims to take industrial development to the block level in UT of J&K, which is the first time in any Industrial Incentive Scheme of the Government of India.
