The Department of Industrial Policy & Promotion (DIPP), Government of India extended special package for Industrial Development of Jammu & Kashmir (J&K) for a period of 5 years, i.e., up to 14 June 2017. Earlier, this package of Industrial Incentive for the State of J&K was announced on 14 June 2002 for a term of 10 years up to 14 June 2012.
The incentives under the special package for Industrial Development were extended for providing continuity as well as maintenance of ongoing industrial development of the state of J&K.
Primary features of the special package for Industrial Development
• Capital Investment Subsidy at 15 percent of investment in plant and machinery is subject to ceiling of 30 lakh Rupees. Nevertheless, the MSMEs would be able to get a Capital Investment Subsidy at the rate of 30 percent of the investment of plant and machinery subject to ceiling of 3 crore Rupees and 1.50 crore Rupees for manufacturing and service sector respectively.
• Apart from this, there will be an availability of 3 percent Interest subsidy on the average of daily working capital loan to all new units for a period of 5 years from the date of commencement of commercial production.
• Central Comprehensive Insurance Subsidy Scheme with 100 percent reimbursement of premium to all new and existing units on their substantial expansion for a period of 5 years from the date of commencement of commercial production will also be available under the package.
Other facts related to the special package
• The benefits of the scheme can be availed by industries set up in notified Industrial Parks & Estates. After consultation with the State Government, the list of notified areas was also extended.
• Apart from this, the list of Thrust Industries which can be set up anywhere in the state, to be eligible for subsidy under the Package, was also expanded and now include wood based industry, stationery items, bottling of Mineral Water, dairy farming packaging industry, compost making, mushroom culture, Pasteurization/Processing of milk and other dairy product, Spice Grinding as well as Flour Mills and Rice Mills.
• This special package for industrial development scheme will be implemented through the J&K State Government and all the funds will be disbursed through the nodal agency called JKDFC.
• Overall, a sum of 295 crore Rupees has been outlaid for a total period.