Srinagar: In a first, Jammu and Kashmir government has announced establishment of industrial estates in the Union Territory in Private Public Partnership (PPP) with shared revenue model.
In this regard, the UT administration has announced the rules for the J&K Private Industrial Estate Development Policy, 2021-30, which was accorded approval by the Administrative Council on August 14, 2021.
“Sanction is accorded to the adoption of the J&K Private Industrial Estate Development Policy, 2021-30,” reads an order issued by Principal Secretary, Industries and Commerce, Ranjan Prakash Thakur.
“Though Jammu and Kashmir announced its first Industrial Policy in 1995 and substituted it by another policy in 1998. The first detailed and comprehensive Industrial policy was announced in the year 2004 which was followed by the Industrial policy of 2016. These policies provided the basic mechanism of Private Industrial Estates. However, the desired remained unaccomplished,” reads an annexure of the J&K Private Industrial Estate Development Policy.
As per the order, this policy shall remain in operation for 10 years from the date of adoption. However the policy shall be reviewed from time to time based on a critical assessment of feedback from stakeholders and change in scope that is regarded necessary.
“The government may come up with a policy for development of private industrial estates on PPP and revenue sharing models.”
The rules also specify allocation of annual budget to provide subsidy and other incentives for the scheme for the promoters.
“As a sequel of past industrial policy schemes, an elaborate framework for development of Private Industrial Infrastructure is required to be detailed for attracting large industrial investments in the private sector”, the government order reads.
Under the scheme the government will be providing a slew of incentives. Besides providing road connectivity, water connection and electricity up to the proposed Estate/Park, the Industrial Parks set up on private land shall be entitled to Capital Infrastructure subsidy of the cost incurred for the development of common industrial infrastructure and utilities such as common effluent treatment plant, working men, etc.
The rate for the Capital Infrastructure Subsidy shall be: For investment up to Rs 25 crore: 20% and 30% subject to maximum of Rs 5 crore and Rs. 7.50 crore for areas in Zone A and B respectively.
For investment above Rs 25 Crore: 20% of the cost incurred with minimum subsidy of Rs 5 crore and maximum subsidy of Rs. 20 crore. This shall be determined on the principle of additional subsidy of Rs 1 crore for addition of each acre of land over the minimum 5 acre in Zone A; 30% of the cost incurred with minimum subsidy of Rs 7.50 crore and maximum subsidy of Rs. 30.00 crore. This shall be determined on the principle of additional subsidy of Rs 1.50 Crore for addition of each acre of land over the minimum 5 in Zone B.
For the IT sector, the applicable rate shall, however, be uniformly @ 20% & 30% subject to maximum of Rs. 20 crore and Rs. 30 crore for areas in Zone A & B respectively.
The subsidy shall be disbursed after the date of operation of such Industrial Estates/Parks.
The Applicant intending to set up a Private Industrial Estate/Park, must submit a Detailed Project Report (DPR) online along with the application.