UT Admn clears 53 more industrial units with Rs 1626 cr investment, 2902 jobs

35 Units to come up in Jammu, 18 in Kashmir

*Exact incentives being calculated to clear more groups

Sanjeev Pargal

JAMMU, Oct 3: The Union Territory administration has cleared 53 more industrial units in Jammu and Kashmir under New Central Sector Scheme (NCSS) following clearance by the Apex Committee, set up at the Central level, to utilize Rs 5630.74 crore saved from Rs 28,400 crore worth Industrial Development Scheme.

"Out of 53 new industrial units cleared for the Union Territory-35 have been approved in the Jammu division and 18 in the Kashmir division,'' official sources told the Excelsior.

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As 918 industrial units had been approved earlier under the NCSS, the administration's nod to 53 more units has taken total number of industries in Jammu and Kashmir to 971. As exact incentives to be availed by 53 nearly cleared units are yet to be finalized, number of more units which can be approved within the Rs 28,400 crore worth scheme is yet to be decided. Sources, however, maintained that some more industrial units can be adjusted under the scheme.

Newly approved 53 industrial units will bring an investment of Rs 1626 crore while previously cleared 918 units are bringing an investment of Rs 12,668 crore in Jammu and Kashmir. The proposed investment in plant and machinery by 918 units has been calculated at Rs 9220 crore and that of 53 new units at Rs 1294 crore.

While previous 918 industrial units will be creating 48,995 employment opportunities, the 53 new units will lead to creation of 2902 new jobs in the Union Territory of Jammu and Kashmir, the sources said.

They added that 53 newly approved industrial units include some big national names.

On how many new industrial units can still be created within the limit of Rs 28,400 crore worth NCSS, sources said it will take some time for calculation as incentives to 53 new units are yet to be worked out.

"Once the incentives are calculated, the amount saved will be known and based on that new units, which are in the waiting, will be given nod,'' they added.

In August this year, the Apex Committee of the Central Government headed by Union Home Minister Amit Shah and comprising Industry and Commerce Minister Piyush Goyal and Lieutenant Governor Manoj Sinha among others had allowed the use of approximately Rs 5630.74 crore under the NCSS for Industrial Development of Jammu and Kashmir for granting registration to units beyond 918 which had already been registered under the Scheme.

The Apex Committee was briefed by the UT administration that an estimated Rs 5630.75 crore may be available under the NCSS as there has been a difference of Rs 4551.01 crore between investment proposed in Detailed Project Reports (DPRs) and the actual final investment made in plant and machinery while an additional Rs 1079.74 crore was available out of total approved scheme allocation of Rs 28,400 crore.

In view of this, the Apex Committee had decided that available amount of Rs 5630.75 crore can be used for granting registration to units beyond 918 units already registered.

Rs 3500 crore of the expected savings arose because of reduction in GST rates

The Apex Committee had also permitted fungibility and reappropriation of funds between incentive components, depending upon actual and projected requirements using Capital Investment Incentive, Capital Interest Subvention, GST-linked Incentive and Working Capital Interest Subvention.

This adjustment can, however, be made without increasing or changing the total approved scheme amount.

The NCSS was launched on April 1, 2021 amounting to Rs 28,400 crore and will continue till 2037. The administration of Jammu and Kashmir has also sought that the incentive amount be increased to Rs 75,000 crore to adjust more units which have applied for registration in the UT as there has been massive response to the scheme and more proposals have been received.

The registered units will avail incentives till 2037 and run their businesses in different parts of the Union Territory generating employment and other facilities.

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.