For the past one-and-a-half year, not a single services sector entity has come forward to avail itself of the Government of India’s Industrial Development Scheme for Jammu and Kashmir, which offers incentives to the services sector at par with the manufacturing sector and was aimed at boosting industrialisation in the state.
According to the scheme, which became effective from 15 June 2017 and will be in force till 31 March 2022, all new industrial units and existing industrial units undertaking substantial expansion in manufacturing and services sectors, including bio-technology and hydel-power generation units up to 10 MW in Jammu & Kashmir, will be eligible for the incentives.
However, according to principal secretary industries and commerce Shailendra Kumar, none in the services sector has come forward to claim the benefits yet.
“Prospective entrepreneurs desirous of setting up their enterprises under services sector like call centres, hospital activities, restaurants (excluding bars), short-term accommodation like hotels, motels, inns and resorts, education sector, transport can avail benefits under this scheme,” Kumar said.
Details and modalities about incentives are available on websites investjk.in, investkashmir.in and investjammu.in.
Eligible industrial units will be provided Central Capital Investment Incentive for Access to Credit (CCIIAC) @30% of the investment in plant and machinery with an upper limit of Rs 5 crore. The units are also entitled to interest incentive @3% on working capital credit advanced by the scheduled banks or central/state financial institutions for the first five years from the date of commencement of commercial production/operation.
The incentive will be so restricted as to ensure that subsidised interest rate is not below the Marginal Cost of funds-based Lending Rates (MCLR) of the lending institution.
According to PHD Chamber Kashmir chapter chairman Mushtaq Ahmad Chaya, there is a need for educating entrepreneurs about IDS through camps and business conclaves.