*Capital, Interest, Insurance, Tpt Subsidy Schemes approved
Mohinder Verma
JAMMU, May 8: Union Finance Ministry has given nod to the extension of industrial package to Jammu and Kashmir by five years and Department of Industrial Policy and Promotion under the Union Ministry of Commerce and Industry will issue notification in this regard within next couple of days. However, several pleas of the State Government have been turned down on various grounds.
Highly placed sources told EXCELSIOR that Union Finance Ministry has given approval to the extension of industrial package to the Jammu and Kashmir albeit this time for five years as against the previous package of incentives sanctioned for 10 years in 2002 which expired on June 14, 2012.
“Now the file is being sent to the Union Ministry of Commerce and Industry for issuance of notification by the Department of Industrial Policy and Promotion, which is likely within next few days”, sources said, adding “the fresh industrial package would be given effect from June 14, 2012”.
Under the previous package, the State Government claimed Rs 124 crore from the Union Government in 10 years but this time the figure is likely to go up considerably although package has been sanctioned for five years only, sources said, adding “the State Government is planning to get Rs 300 crore worth benefits from the Centre keeping in view the momentum the industrialization has gained and the keenness of State Government to bring uncovered areas under the ambit of industrialization”.
In response to a question, sources said, “under the new package excise and income tax subsidy is unlikely and the indication of the same was already given to the State Government authorities during series of meetings held in the recent past and the last one on February 25, 2013”, adding “even the demand of the State Government regarding making the package location neutral seems to be not considered by the Union Government on various grounds”.
While seeking location neutrality under the new industrial package, the State Government had submitted that due to locations specific previous package neither the benefit could be fully availed by the entrepreneurs of the State nor the industry could disburse in the hilly and backward areas of the State.
“As per the indications received from the Department of Industrial Policy and Promotion, thrust industries might have been considered by the Union Government under the new package”, sources said, adding “in the context of Jammu and Kashmir, the thrust industries are handicrafts, eco-tourism and exploration of minerals etc. Even detailed information in this regard was also sought by the Department of Industrial Policy and Promotions about two months back”.
However, sources informed that Central Capital Investment Subsidy Scheme, Central Interest Subsidy Scheme, Central Comprehensive Insurance Scheme and and Transport Subsidy Scheme have been approved by the Union Finance Ministry under the new package.
Meanwhile, Joint Secretary in the Department of Industrial Policy and Promotion, Subhra Singh has convened a meeting of top brass of the Industries and Commerce Department of the State at Union Capital tomorrow.
“The meeting is aimed at seeking information pertaining to the number of units installed during the period of previous package and the employment opportunities generated in such units”, sources said, adding “the DIPP will also give detailed information on the Transport Subsidy Scheme and procedure to be adopted for availing benefit under the new industrial package”.
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