Land policy to attract investments
Central Ministries in touch with J&K
JAMMU, Jan 29: Investment friendly Industrial Policy for the Union Territory of Jammu and Kashmir which will have reimbursement of UT Goods and Services Tax (UTGST), exemption from Stamp Duty, capital investment subsidy and various other incentives, is in the final stage and was likely to be announced either after the Union budget on February 1 or after Delhi Assembly elections on February 8.
Top official sources told the Excelsior that the Union Territory Government in consultations with the Centre and industrial experts besides some State Governments especially in the North East has devised the policy taking into account the major factor of bringing investments to the Union Territory of Jammu and Kashmir.
Investments by the industry, the Government feels, will generate employment. To bring in investment, the Union Territory Government also proposed to hold Investment Summit in Jammu and Kashmir later this year for which the curtain raiser was recently held in the Union capital.
“Under the new Industrial Policy, which is almost in the final stage, the industries are likely to get full reimbursement of UTGST, complete exemption from Stamp Duty and capital investment subsidy besides a host of other benefits, which have been finalized taking into account the previous such policies in Jammu and Kashmir, other Himalayan States and North East,” sources said.
They added that the Industrial Policy will have attractive land policy as well.
While the big industry in Jammu and Kashmir will have to compete with the outside industry, the Government will develop mechanism for protection of small and middle scale industries in Jammu and Kashmir, sources said, adding this is being done to ensure that small and medium scale industrialists don’t suffer in the Union Territory following outside investment.
“All possible measures were being taken in the Industrial Policy to ensure best safeguards for small and medium scale industrialists,” sources said.
Following nod from the Union Territory Government, the Industrial Policy will be sent to the Union Ministries of Home Affairs and Commerce Ministry before being rolled out by the UT Government, sources said. They added that the Home and Commerce Ministries’ officials were already in touch with the Union Territory Government in framing the Industrial Policy,
During his recent visit to Jammu as part of Central Government’s public outreach programme in the Union Territory, Railways and Commerce Minister Piyush Goyal had announced that the Industrial Policy in Jammu and Kashmir is in the offing. Lieutenant Governor Girish Chandra Murmu had also stated few days back in New Delhi while addressing the Investors Summit that the UT Government is framing comprehensive Industrial Policy to attract the investments.
“Large number of industrialists in different sectors have shown their interest for investments in Jammu and Kashmir but they were awaiting final declaration of land rules and Industrial Policy by the Centre and the UT Governments,” sources said, adding that the Centre was not going to impose any conditions for purchase of land by the industrialists for setting up their establishments as well as colonies for the staff.
They asserted that the industrialists have been assured on this account by the concerned quarters.
As the Union budget is scheduled to be presented in the Parliament on February 1 and the Ministers are also busy in Delhi Assembly elections scheduled for February 8, sources said the Industrial Policy might either be announced after the budget or the Delhi Assembly polls.
On December 21, 2018, the Central Government had announced industrial package for Jammu and Kashmir including reimbursement of Central share of CGST and IGST, Income Tax reimbursement, Transport incentive of 20 percent for transport by Railways or Waterways and 33 percent by air and employment incentive of an additional 3.67 percent of employer’s contribution in EPF in addition to 8.33 percent already paid by the Central Government under PMRPY.
The package was finalized with personal intervention of then Principal Secretary, Industries and Commerce, Shailendra Kumar, presently the Chief Electoral Officer (CEO) J&K while the present Industrial Policy is being framed by Commissioner /Secretary, Industries and Commerce, MK Dwivedi under the guidance of Lieutenant Governor Girish Chandra Murmu and Chief Secretary BVR Subrahmanyam.