Jammu, Jan 7 (KNS): Jammu and Kashmir’s Lieutenant Governor Manoj Sinha today announced the GoI approved Rs 28400 Crore mega “Industrial Development Package-2021” for the UT’s industrial growth, investments and job creations in the industrial sector.

Addressing a press conference in Jammu, the LG Sinha said that the Union Cabinet on January 6, sanctioned the huge Industrial Development Package-2021 for J&K’s industrial sector that has been craving for the real support from the Center. “The package aims at providing a huge boost to the existing industrial sector, setting up new units, creating 4.5 lakh jobs and at least 28,400 Crore investments. The package will remain in force for 17 years i.e. till 2037,” he said.

LG Sinha said that for the first time, any industrial incentive scheme is taking industrial development to the block level and will promote far flung areas of J&K

“Will encourage new investment, substantial expansion and also nurture the existing industries in J&K besides employment to 4.5 lakh – equitable, balanced and sustainable socio economic development of the region. It will also benefit manufacturing as well as Service Sector Units in J&K to benefit. The scheme visualizes the larger role of UT of J&K in Indian Economy and development with substantial investment Scheme will optimize utilization of local strength of J&K,” LG said.

In a major decision of far reaching consequence, Government of India had approved a new Industrial Developmental Scheme for Jammu and Kashmir. The Scheme will go a long way in ushering an era of socio economic development of the region as also catering the aspirations of people.

While giving details of the scheme, Lieutenant Governor in a press conference called the scheme as a major push to the economy of the region and providing huge opportunities of employment to people of J&K.

The main purpose of the scheme is to generate employment beyond government jobs in both manufacturing and service sectors which directly leads to the socio economic development of the region, he said, “ The scheme is being implemented with the vision that industry and service led development of J&K needs to be given a fresh thrust with emphasis on job creation, skill development and sustainable development by attracting new investment and nurturing the existing ones. The scheme will provide major support to local industry besides creation of new business opportunities.”

Regarding the incentives that would be available under the scheme, he said, “ Capital Investment Incentive at the rate of 30% in Zone A and 50% in Zone B on investment made in Plant & Machinery (in manufacturing) or construction of building and other durable physical assets (in service sector) will be made available. Units with an investment up-to Rs. 50 crore will be eligible to avail this incentive. Maximum limit of incentive is Rs 5 crore and Rs 7.5 crore in Zone A& Zone B respectively.

Regarding Capital Interest subvention, “At the annual rate of 6% for maximum 7 years on loan amount up to Rs. 500 crore for investment in plant and machinery (in manufacturing) or construction of building and all other durable physical assets( in service sector).

About GST Linked Incentive, he said, “ Financial incentive based on Gross GST. This will incentivise output upto 300% of the eligible value of actual investment made in plant and machinery (in manufacturing) or construction in building and all other durable physical assets(in service sector) for 10 years. However, amount of incentive in a financial year will not exceed one-tenth of the total eligible amount of incentive.”

He said that for Working Capital Interest Incentive All existing units at the annual rate of 5% for maximum 5 years. Maximum limit of incentive is Rs 1 crore.

While giving out the details of the scheme, LG emphasized that it will be ensured that the implementation of the new scheme shall be done in a manner which is friendly and hassle free to the investors and it will be ensured that entrepreneurs from within J&K and outside find a smooth and progressive ecosystem for their business plans.

Further he emphasized that “with our transparent policies, investments in developing infrastructure, market oriented policy environment and skilled human capital, we aspire to become growth pillar for India in the current decade” He further said that Government and Industry will work closely to achieve the vision of the holistic and balanced development of Jammu and Kashmir.

LG also appreciated the Industry and Commerce department for working hard to materialize this scheme in continuous consultation with the Government of India. He also thanked the business associations and all who contributed through their suggestions.

Others present were Chief Secretary, BVR Subrahmanyam, Principal Secretary Rohit Kansal, Principal Secretary Nitishwar Kumar, Commissioner/ Secretary M K Dwivedi besides other senior officers of the government. (KNS)