The Rs 28,400 crore central scheme for industrial development in J&K will be implemented under the supervision of Department for Promotion of Industry and Internal Trade (DPIIT), government of India, while the UT government has been delegated the power of registration and processing of claims under the scheme.
As per a notification issued by the government of India, the scheme will be implemented under the supervision of the Department for Promotion of Industry & Internal Trade (DPIIT). “However, the registration process as well as processing of claims under different incentive components is delegated to the UT of Jammu and Kashmir.”
The notification has paved way for the constitution of three committees for governance and implementation of this scheme.
The apex committee will be headed by the Union Home Minister and will have Union Commerce and Industry Minister and Lt. Governor of J&K as its members. The apex committee will have powers to decide upon any modification in the scheme within its overall financial outlay.
The steering committee will have Secretary, DPIIT as Chairperson and Secretary/ Additional Secretary, Ministry of Home Affairs, Secretary, Ministry of Environment, Forest and Climate Change, Secretary, Ministry of MSME, representative, NITI Aayog, Additional Secretary and Financial Advisor (AS&FA), DPIIT, Chief Secretary, J&K, Joint Secretary, DPIIT in charge of J&K scheme as Member Secretary.
The Union Territory Level Committee will be headed by Chief Secretary, Jammu & Kashmir as Chairperson .
The UT level committee has been tasked to monitor the overall implementation of the Scheme and put in place proper checks and balances for ensuring transparency and efficiency in grant of registration, processing and approval of claims under the Scheme.
The Committee in coordination with the Department of Industries and Commerce, UT of Jammu and Kashmir shall ensure that proper checks and balances are in place to avoid misuse of the Scheme
It is pertinent to mention here that the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi in January approved the proposal of Department for Promotion of Industry and Internal Trade for Central Sector Scheme for Industrial Development of Jammu & Kashmir. The scheme is approved with a total outlay of Rs. 28,400 crore up to the year 2037.
The scheme will provide a 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).
Units with an investment up to Rs. 50 crore will be eligible to avail this incentive. Maximum limit of incentive is Rs 5 crore and Rs 7.5 crore in Zone-A and Zone-B respectively.
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.