By TIOL News Service

NEW DELHI, JUNE 15, 2013: THE Union Government has extended the Special Package for Industrial Development of Jammu & Kashmir (J&K) for a further period of 5 years, upto 14th June, 2017. The earlier package of Industrial Incentive for the State of J&K was announced on 14.06.2002 for a period of 10 years upto 14.06.2012. In order to provide continuity and to maintain the enabling environment for ongoing industrial development of the state of J&K, it has been decided to extend the incentives under the special package for a further period of five years from 15.06.2012 to 14.06.2017. The package includes:

(i) Capital Investment Subsidy @ 15% of investment in plant and machinery subject to ceiling of Rs.30 lakh. However, MSMEs would be eligible for Capital Investment Subsidy @ 30% of the investment of plant and machinery subject to ceiling of Rs.3.00 crore and Rs.1.50 crore for manufacturing and service sector respectively to all new industrial units and existing industrial units on their substantial expansion.

(ii) 3% Interest subsidy on the average of daily working capital loan to all new units for a period of 5 years from the date of commencement of commercial production.

(iii) Central Comprehensive Insurance Subsidy Scheme with 100% reimbursement of premium to all new and existing units on their substantial expansion for a period of 5 years from the date of commencement of commercial production.

The benefits can be availed by industries set up in notified Industrial Parks & Estates. The list of these notified areas has been expanded in consultation with State Government. The list of Thrust Industries which can be set up anywhere in the state, to be eligible for subsidy under the Package, has also been expanded to include Flour Mills and Rice Mills, Spice Grinding, Pasteurization/Processing of milk and other dairy product, mushroom culture, compost making, dairy farming packaging industry, bottling of Mineral Water, Stationery items and wood based industry.

The scheme will be implemented through State Government and funds will be disbursed through JKDFC, a nodal agency.

The total outlay for the period of the new package is Rs.295 crore.

All new units in the notified area in the State of J&K excluding negative list and all new units of thrust industry outside notified area in the State of J&K will be eligible for subsidy under the package for a period of 5 years.

In the erstwhile package, subsidy of Rs 158.45 crore (upto 31.3.2013) has been released during a period of 10 years. 9305 new units have been set-up with total investment of Rs.3183.48 crores and employment generated is 1,11,397 in persons in the state of J&K.