New Policy once situation stabilizes
*J&K, Ladakh to have separate Policies
Excelsior Correspondent
JAMMU, Apr 9: In view of Coronavirus pandemic and lockdown across the country, the Union Ministry of Commerce and Industry has extended the existing Industrial Development Scheme for the Union Territories of Jammu and Kashmir and Ladakh for another year amidst indications that once the new Policy is formulated after return of normal conditions the existing policy will be replaced without waiting for an year.
Official sources told the Excelsior that the Union Ministry of Commerce and Industry headed by Piyush Goyal has issued a notification for extension of existing Industrial Development Scheme for the Union Territories of Jammu and Kashmir and Ladakh by another year.
“The Scheme which expired on March 31, 2020, will continued till March 2021 unless replaced earlier,” they said, adding that extension of the scheme was necessitated as new Policy being framed for the Union Territories of Jammu and Kashmir and Ladakh, couldn’t be finalized in view of breakout of Coronavirus pandemic and preoccupation of entire Government in the efforts to control it.
Though the existing Industrial Development Scheme has been extended for another year i.e. till March 31, 2021, sources were of the view that once the situation stabilizes across the country from Coronavirus pandemic the new Industrial Policy could be announced earlier than March 2021 to replace the present Scheme.
The existing Industrial Development Scheme was in place from 2017.
However, following abrogation of special Constitutional provisions of Jammu and Kashmir on August 5 and bifurcation of erstwhile State into two Union Territories of J&K and Ladakh, the Central Government had decided to announce new Industrial Development Policy for the two UTs separately.
Asserting that there will be separate Industrial Policies for the Union Territories of J&K and Ladakh, sources said this was a must keeping in view different kind of requirements, topographical conditions and taking into account various other factors of the two UTs. However, pending finalization of new Scheme, the Central Government has decided to go ahead with the existing scheme.
Amendments carried out in different Clauses of the existing Scheme said: “The Scheme will be effective from 15.6.2017 to 31.3.2021 or up to such date as specified under any order issued in suppression of this order”.
“New Industrial Unit means an industrial unit which applies for registration on the DPIIT portal on or after 15th day of June 2017 but not later than 31.3.2021, and has commenced commercial production after 15.6.2017 and is not an ‘Existing Unit’ defined in Clause 5 (h) of the scheme, or an `Existing Unit’ undertaking `substantial expansion’ as defined in Clause 5 (1) of the Scheme”, the amendments said.
It said commercial production/operation must commence within 36 months of the date of grant of registration. Hydro-power plants, subject to additional time as stipulated in MNRE, shall commence production/operation within 48 months of grant of registration.
“An Industrial Unit shall be allowed to apply for registration with the DPIIT portal up to 31.3.2021 for availing benefits under this scheme, subject to reduction, or extension of last date of registration, for any category or class of industrial units, including ‘new units’ and `existing units undertaking substantial expansion’, pursuant to any order issued in suppression of this order,” the Ministry of Commerce and Industry notification said.
Sources said the Central Government in consultations with the administration in the Union Territories of Jammu and Kashmir and Ladakh will take steps for formulation of New Industrial Scheme separately for the two UTs after restoration of normal conditions in the country and crisis arising out of Coronavirus pandemic is over.
They added that the Union Ministry of Commerce and Industry has communicated to the Jammu and Kashmir Government about extension in the existing Industrial Scheme for another year.
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