Industrial Development of Jammu & Kashmir

The Department for Promotion of Industry and Internal Trade is implementing a Central Sector Scheme for Industrial Development of Jammu & Kashmir.

Scheme duration and outlay

The financial outlay of the proposed scheme is Rs.28,400 crore for the scheme period 2020-21 to 2036-37.

Objective

The main purpose of the scheme is to generate employment which directly leads to the socio economic development of the area.

Benefits

The following incentives would be available under the scheme:

• 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) is available. Units with an investment upto 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 & 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.

Source : PIB