‘Extend North East incentive package to JK’
GK NEWS NETWORK
Srinagar, Jan 16: Representatives of some premier traders’ bodies and industrial chambers from J&K have made a strong appeal to the government to persuade the centre to extend the package of incentives granted to the north eastern states for growth of trade and industry to J&K also.
The business and industry leaders have also called the state government to urge the central government for restraining the Income Tax Department from treating the incentives/subsidies being received by eligible industrial units in J&K “as taxable income under section 80IB.”
The joint appeal, according to a statement sent to Greater Kashmir, was made by president Chamber of Commerce and Industry Jammu Y Sharma, chairman Federation of Industries Jammu Davinder Mahajan, president Federation of Chamber of Industries Kashmir, Shakeel Qalander, president Association of Industries and co-chairman Federation of Industries Jammu Tejwant Singh Reen and secretary general Chamber of Commerce and Industry Jammu Satish Gupta, at a press conference in Jammu.
The representatives said that even as the package of incentive given to North Eastern states in 1999 was extended by the government of India to J&K from 2002 to 2012, the other comprehensive and broad-based packages which included all segments of economy given to the north eastern states in 2004 and 2007 were not extended to J&K.
The members said the state government should pursue the matter with the centre and seek extension of these schemes to J&K. The members said the J&K should be made free of inspector-raj and should be declared a free economic zone up to 2021.
“The virtual withdrawal of the excise duty exemption in 2008 is a breach of trust and commitment and is proving detrimental to the existing industry as well as future investments in our state,” they said. “It is a betrayal to the investing community whom we had invited with open arms to create infrastructure,” it said.
“The condition of the local entrepreneurs who had done substantial expansions of their old units or set up new units to avail the incentive schemes by raising loans from the banks is becoming alarmingly bad,” it said.
The joint statement said, “The notification no. 19/2008 of 2008 implemented from April 1, 2008 is turning out to be detrimental to J&K industry. The principal aim of extending 100 per cent excise exemption to J&K industry has been defeated with the issuance of this notification.”
“It would not only lead to large scale closure of existing industry, retrenchment of labour force but also bring imbalance in the socio economic conditions of the state, which is trying to limp back to normalcy,” it said.
Salient features of North Eastern Package that J&K trade and industry want to be implemented in the state:
Incentives like Income Tax Holiday, Central Excise Holiday, 3% Interest Subsidy, Comprehensive Insurance Subsidy, Transport Subsidy scheme etc. has been provided for.
The Capital Investment subsidy has been enhanced to 30% and maximum limit has been raised to Rs.1.5 Cr. For special projects it has been kept up to Rs.30 Cr.
Other than Industries these incentives have been extended to the Service/other Sector industries like Hotels (not below two star category), adventure and leisure sports including ropeways.
Medical & Health services, Nursing homes (min. 25 Beds) and old age homes.
Vocational Training Institutes such as institutes for hotel management, catering and food craft, entrepreneurship development, nursing & Para medical, civil aviation related training, fashion design and industrial training.
These incentives are also available to existing/old units upon their ‘Substantial Expansion’. We demand the package be provided to existing units without substantial expansion.
Lastupdate on : Sat, 16 Jan 2010 21:30:00 Makkah time
Lastupdate on : Sat, 16 Jan 2010 18:30:00 GMT
Lastupdate on : Sun, 17 Jan 2010 00:00:00 IST
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