{"id":241928,"date":"2021-01-07T18:50:33","date_gmt":"2021-01-07T13:20:33","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=241928"},"modified":"2021-01-07T17:48:27","modified_gmt":"2021-01-07T12:18:27","slug":"government-approves-central-sector-scheme-for-industrial-development-of-jammu-kashmir","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/01\/07\/government-approves-central-sector-scheme-for-industrial-development-of-jammu-kashmir\/","title":{"rendered":"Government approves Central Sector Scheme for Industrial Development of Jammu &#038; Kashmir"},"content":{"rendered":"<p style=\"text-align: justify;\">The Cabinet Committee on Economic Affairs considered and approved the proposal of Department for Promotion of Industry and Internal Trade for Central Sector Scheme for Industrial Development of Jammu &amp; Kashmir. The scheme is approved with a total outlay of Rs. 28,400 crore upto the year 2037.<\/p>\n<p style=\"text-align: justify;\">Government of India has formulated the New Industrial Development Scheme for Jammu &amp; Kashmir (J&amp;K IDS, 2021) as a Central Sector Scheme for the development of Industries in the UT of Jammu &amp; Kashmir. The main purpose of the scheme is to generate employment which directly leads to the socio-economic development of the area. Considering the historic development of reorganization of Jammu &amp; Kashmir with effect from 31.10.2019 into UT of Jammu &amp; Kashmir under the J&amp;K Reorganisation Act, 2019, the present scheme is being implemented with the vision that industry and service-led development of J&amp;K needs to be given a fresh thrust with emphasis on job creation, skill development and sustainable development by attracting new investment and nurturing the existing ones.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><strong>The following incentives would be available under the scheme:<\/strong><\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li><strong>Capital Investment Incentive<\/strong> at the rate of 30% in Zone A and 50% in Zone B on investment made in Plant &amp; Machinery (in manufacturing) or construction of the building and other durable physical assets(in service sector) is available. Units with 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 &amp; Zone B respectively<\/li>\n<li><strong>Capital Interest subvention<\/strong>: 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).<\/li>\n<li><strong>GST Linked Incentive<\/strong>: 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.<\/li>\n<li><strong>Working Capital Interest Incentive<\/strong>: All existing units at the annual rate of 5% for maximum 5 years. Maximum limit of incentive is Rs 1 crore.<\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><strong>Key Features of the Scheme:<\/strong><\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li>Scheme is made attractive for both smaller and larger units. Smaller units with an investment in plant &amp; machinery upto Rs. 50 crore will get a capital incentive upto Rs. 7.5 crore and get capital interest subvention at the rate of\u00a0 6% for maximum 7 years<\/li>\n<li>The scheme aims to take industrial development to the block level in UT of J&amp;K, which is first time in any Industrial Incentive Scheme of the Government of India and attempts for a more sustained and balanced industrial growth in the entire UT<\/li>\n<li>Scheme has been simplified on the lines of ease of doing business by bringing one major incentive- GST Linked Incentive- that will ensure less compliance burden without compromising on transparency.<\/li>\n<li>Scheme envisages greater role of the UT of J&amp;K in registration and implementation of the scheme while having proper checks and balances by having an independent audit agency before the claims are approved<\/li>\n<li>It is not a reimbursement or refund of GST but gross GST is used to measure eligibility for industrial incentive to offset the disadvantages that the UT of J&amp;K face<\/li>\n<li>Earlier schemes though offered a plethora of incentives. However, the overall financial outflow was much lesser than the new scheme.<\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><strong>Major Impact and employment generation potential:<\/strong><\/span><\/p>\n<ol style=\"text-align: justify;\">\n<li>Scheme is to bring about radical transformation in the existing industrial ecosystem of J&amp;K with emphasis on job creation, skill development and sustainable development by attracting new investment and nurturing the existing ones, thereby enabling J&amp;K to compete nationally with other leading industrially developed States\/UTs of the country.<\/li>\n<li>It is anticipated that the proposed scheme is likely to attract unprecedented investment and give direct and indirect employment to about 4.5 lakh persons. Additionally, because of the working capital interest subvention the scheme is likely to give indirect support to about 35,000 persons.<\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\"><strong>Expenditure involved:<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The financial outlay of the proposed scheme is Rs.28,400 crore for the scheme period 2020-21 to 2036-37. So far, the amount disbursed under various special package schemes is Rs. 1,123.84 crore.<\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><strong>Cabinet Committee on Economic Affairs (CCEA)<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>[Press Release dt. 07-01-2020]<\/strong><\/p>\n<p style=\"text-align: justify;\"><strong>[Source: PIB]<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Cabinet Committee on Economic Affairs considered and approved the proposal of Department for Promotion of Industry and Internal Trade for Central <\/p>\n","protected":false},"author":8808,"featured_media":218749,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29535,4],"tags":[30554,44734,44735,4621,6241,2958,29967],"class_list":["post-241928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cabinet_decisions","category-legislationupdates","tag-cabinet","tag-capital-investment","tag-central-sector-scheme","tag-government","tag-gst","tag-Investment","tag-working-capital"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Government approves Central Sector Scheme for Industrial Development of Jammu &amp; 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Kashmir-1947 &#8212; Approved by Cabinet","author":"Bhumika Indulia","date":"October 9, 2019","format":false,"excerpt":"Union Cabinet has approved Inclusion of 5,300 DP families of Jammu & Kashmir-1947 who initially opted to move outside the State of Jammu & Kashmir but later on returned and settled in the State of Jammu & Kashmir, in the Rehabilitation Package approved by the Cabinet on 30-11-2016 for Displaced\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":226244,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/02\/27\/cabinet-approves-issuance-of-an-order-for-adaptation-of-central-laws-in-ut-of-jk-under-s-96-of-jammu-and-kashmir-reorganisation-act-2019\/","url_meta":{"origin":241928,"position":1},"title":"Cabinet approves &#8212; Issuance of an Order for adaptation of Central laws in UT of J&#038;K under S. 96 of Jammu and Kashmir Reorganisation Act, 2019","author":"Bhumika Indulia","date":"February 27, 2020","format":false,"excerpt":"The Union Cabinet has approved issuance of an order for adaptation of Central Acts in the Union Territory of Jammu and Kashmir under Section 96 of the Jammu and Kashmir Reorganisation Act, 2019 by the Central Government. After coming into force of the Jammu and Kashmir Reorganisation Act, 2019 the\u2026","rel":"","context":"In &quot;Cabinet Decisions&quot;","block_context":{"text":"Cabinet Decisions","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/cabinet_decisions\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":232892,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/07\/27\/chief-justice-jammu-and-kashmir-hc-approves-scheme-for-engagement-of-law-students-as-law-interns-including-e-internship-in-jk-hc\/","url_meta":{"origin":241928,"position":2},"title":"Chief Justice, Jammu and Kashmir HC, approves scheme for engagement of law students as law interns including e-internship in J&#038;K HC","author":"Bhumika Indulia","date":"July 27, 2020","format":false,"excerpt":"Scheme for Internship and e-internship in the High Court of Jammu and Kashmir In exercise of the powers conferred under Article 229 of the Constitution of India, the Chief Justice, High Court of Jammu and Kashmir, has been pleased to approve the following scheme for engagement of law students as\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":221608,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/31\/jammu-and-kashmir-reorganisation-removal-of-difficulties-order-2019\/","url_meta":{"origin":241928,"position":3},"title":"Jammu and Kashmir Reorganisation (Removal of Difficulties) Order, 2019 [Read the Order]","author":"Bhumika Indulia","date":"October 31, 2019","format":false,"excerpt":"Judges of J&K HC for the existing State of J&K holding office immediately before appointed day shall be deemed to have been appointed under Art. 217 of the Constitution and they shall be deemed to have taken oath or affirmation under Art. 219 of the Constitution and shall continue to\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":246795,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/04\/13\/budget-session-18-bills-passed-by-parliament\/","url_meta":{"origin":241928,"position":4},"title":"Budget Session | 18 Bills passed by Parliament","author":"Bhumika Indulia","date":"April 13, 2021","format":false,"excerpt":"The Budget Session, 2021 of Parliament, which commenced on January 29, 2021, has been adjourned on March 25, 2021. During this Session a total of 20 Bills (17 in Lok Sabha and 03 in Rajya Sabha) were introduced. 18 Bills were passed by Lok Sabha and 19 Bills were passed\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/04\/MicrosoftTeams-image-65.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/04\/MicrosoftTeams-image-65.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/04\/MicrosoftTeams-image-65.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/04\/MicrosoftTeams-image-65.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/04\/MicrosoftTeams-image-65.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":215662,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/06\/13\/cabinet-approves-extension-of-presidents-rule-in-jammu-and-kashmir\/","url_meta":{"origin":241928,"position":5},"title":"Cabinet approves extension of President&#8217;s Rule in Jammu and Kashmir","author":"Bhumika Indulia","date":"June 13, 2019","format":false,"excerpt":"Based on the prevailing situation in the state as stated in the report of Governor of Jammu and Kashmir, the Union Cabinet, chaired by the Prime Minister Narendra Modi has approved the extension of President's Rule in Jammu and Kashmir for a further period of six months with effect from\u2026","rel":"","context":"In &quot;Cabinet Decisions&quot;","block_context":{"text":"Cabinet Decisions","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/cabinet_decisions\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/CABINET-SECRETARIAT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/241928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=241928"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/241928\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/218749"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=241928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=241928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=241928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}