Union Government approves Central Sector Scheme for Industrial Development of Jammu and Kashmir

New Delhi: The Union government has approved the proposal of the Department for Promotion of Industry and Internal Trade for the Central Sector Scheme for Industrial Development of Jammu & Kashmir.

The government of India has formulated the New Industrial Development Scheme for Jammu & Kashmir as a Central Sector Scheme for the development of Industries in the UT of Jammu and Kashmir.

The main purpose of the scheme is to generate employment which directly leads to the socio-economic development of the area. Considering the historic development of reorganization of Jammu & Kashmir with effect from 31.10.2019 into UT of Jammu & Kashmir under the J&K Reorganisation Act, 2019, the present scheme is being implemented with the vision that industry and service led the 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, as per Press Information Bureau.

The scheme aims to take industrial development to the block level in UT of J&K, which is the first time in any Industrial Incentive Scheme of the Government of India and attempts for a more sustained and balanced industrial growth in the entire UT

The scheme has been simplified on the lines of ease of doing business by bringing one major incentive- GST Linked Incentive- that will ensure less compliance burden without compromising on transparency.

It is anticipated that the proposed scheme is likely to attract unprecedented investment and give direct and indirect employment to about 4.5 lakh persons. Additionally, because of the working capital interest subvention, the scheme is likely to give indirect support to about 35,000 persons.

The financial outlay of the proposed scheme is Rs.28,400 crore for the scheme period 2020-21 to 2036-37. So far, the amount disbursed under various special package schemes is Rs. 1,123.84 crores.