Industrial Promotion Policy for J&K
*Apex Committee headed by Shah to take decision
Sanjeev Pargal
JAMMU, Apr 8: The Lieutenant Governor’s administration has written to Department for Promotion of Industry and Internal Trade (DPIIT) headed by Union Minister of Commerce and Industry Piyush Goyal and Union Ministry of Home Affairs led by Amit Shah to consider registration of around 150 more units from out of Rs 28,400 crore worth industrial package as nearly Rs 7,000 crore will be saved from reduced GST and plant machinery cost from 971 units already registered under the package.
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At the same time, the administration’s request for increase in package from Rs 28,400 crore to Rs 75,000 crore stands as it will help in clearing 570 industrial units whose applications complete in all respects have already been received besides adding more units to boost industrialization in the Union Territory of Jammu and Kashmir.
Official sources, however, told the Excelsior that all these decisions can be taken only in the Apex Committee meeting which is headed by Shah and comprises Goyal and Lieutenant Governor Manoj Sinha besides senior officers of the MHA and DPIIT. The meeting is expected to be convened only after Assembly elections in five States/UT in first week of May.
“There will be nearly Rs 7000 crore worth savings, a little less or little more, from the reduced Goods and Services Tax and after proper assessment of plant machinery as per the Industrial Promotion Policy. The authorities dealing with the Industrial Promotion Policy are of the view that this amount is enough to adjust around 150 more industrial units,” the sources said but added that since the Policy pertains to the Central Government they have to be briefed in detail and only after their nod the decision to this effect can be taken.
Pointing out that the administration’s demand for increasing Industrial Promotion Policy package from Rs 28,400 crore to Rs 75,000 crore stands for bringing further industrial revolution in Jammu and Kashmir, sources said, the new proposal has sought approval of MHA and DPIIT for registration of nearly 150 more units within the funds available under the existing package.
However, if the package is extended beyond Rs 28,400 crore, then many more units will be registered, the sources said, adding presently at least 570 applications complete in all respects have been pending with the Department of Industries for registrations.
Named as New Central Sector Scheme (NCSS) which started on April 1, 2021 for Jammu and Kashmir amounting to Rs 28,400 crore will continue till 2037 but entire amount meant for incentives has already been exhausted with registration of 971 units. However, since there has been massive response to the scheme and more proposals have been received, the administration has sought increase in the package plus registration of more units from the saved amount
A whopping 971 industrial units have been registered across Jammu and Kashmir which will avail incentives till 2037 and run their businesses in different parts of the Union Territory generating employment and other facilities. In view of encouraging response to the industrial development scheme, more proposals were received but their approval will require enhancement of the package from Rs 28,400 crore, the sources said.
The Lieutenant Governor’s Secretariat had last year written to the Department for Promotion of Industrial and Internal Trade, Ministry of Commerce and Industry, Government of India, for increasing financial outlay of the package from Rs 28,400 crore to Rs 75,000 crore to accommodate more proposals to encourage industrial investments in Jammu and Kashmir which will benefit the local youth in terms of employment.
According to the officials, a total of 971 industrial investment proposals have been cleared with financial outlay of Rs 28,400 crore. However, these incentives will be given to the industries till 2037 subject to certain conditions which are part of the New Central Sector Scheme.
The Central Government had in April 2021 unveiled Jammu and Kashmir Industrial Policy worth Rs 28,400 crore aimed at giving industrial boost to the UT and generate three lakh jobs. Later, it was presumed that number of the jobs generation from the policy could go up.
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