The quest for sustained investments for economic development and generation of employment opportunities has been there in the State of Jammu and Kashmir too like most of other Indian States but not to the extent of putting in result oriented and varied efforts by successive State Governments. That scenario could be attributable to the political leadership having conventionally been exhibiting more interest in State politics of its own “nature” or at best attending to and be concerned about tourism industry alone, though its importance in the State economy cannot be ignored. Not that industrial units have not been established at a few locations, known as Industrial Areas in adjoining areas of both the capital cities but the volume of production and the number of units both, being not commensurate to the requirements of the State, suggesting therefore, that some pragmatic leaps and not short steps alone, needed to be taken to achieve a breakthrough.
Let numerous problems faced by the industrial units in the State not be discussed in details here which, besides being there due to host of reasons including poor and non professional management, inadequate stake put in by entrepreneurs etc; the role played by the Government had to be broadened and extensively focused on how slew of incentives could help not only the existing units but which resulted in extended investments and a climate of going the whole hog towards industrialization in Jammu and Kashmir.
Governor N N Vohra , underlining the need and the importance of incentives playing the decisive role in the subject matter, has advocated for extending the incentives available under North East Industrial Development Scheme (NEIDS) to Jammu and Kashmir State. In this connection, he has written to the Prime Minister, Union Finance Minister and Union Minister for Industries and Commerce to seek their indulgence in getting these incentives extended to J&K State so that a climate of investments, industrialization and socio- economic stability took place in Jammu and Kashmir. NEIDS was launched by Government of India in 2017 to generate and beget industrial development in the North Eastern Region comprising States like Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.
The move of the Governor in commendable and it could result, besides new investments and creation of more industrial units , in a massive positive change in the dismal performance of our existing industrial units in the State, most of whom are defunct or are struggling to reach breakeven point and fighting mounting losses resulting in their term loans and working capital facilities from various Banks becoming NPAs. Facilities similar to or at par with NEIDS are presently not available under Industrial Development Scheme for Jammu and Kashmir.
It is noteworthy that under the sought after scheme, all new industrial units in manufacturing and services sectors will be eligible for incentives. Bio-technology units and Hydel Power generation units up to 10 MW capacities too come under the umbrella of these incentives. If these incentives are implemented subject to Government of India agreeing in principle for extension thereof , Jammu and Kashmir industrial units shall be entitled to total benefits from all components put together limited to how much total investment was made in Plant and machinery which must not exceed Rs.200 crore per unit. These include cost of construction of building and creating of other durable physical assets.
The relief to entrepreneurs under the scheme, if extended, would be phenomenal like incentives in interest on working capital, comprehensive insurance incentive of unbelievable 100 percent reimbursement, GST reimbursement, income tax reimbursement, transport incentive – railways, waterways, roadways and airways, employment incentive and the like. None of such incentives and with lucrative proportions are available currently in the State. Governor has lamented over several investors in the State having withdrawn their commitments even after land was allotted to them and lease deeds executed. That trend hopefully shall surely get reversed and massive investments coupled with eco- friendly industrialization shall be getting a fillip in Jammu and Kashmir vis-à-vis NEIDS . Last but not the least, prevalence of peace, tranquility and order are prerequisites for creation of an assured investment climate in the State besides these incentives.
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