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CCEA Approved Central Sector Scheme for 17 Years for Industrial Development of J&K

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Government approves Central Sector Scheme for Industrial DevelopmentOn January 6, 2021, the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister (PM) Narendra Modi has approved the Central Sector Scheme (CSS) namely “New Industrial Development Scheme for Jammu & Kashmir (J&K IDS, 2021)” for Industrial Development of Jammu & Kashmir (J&K). The information for the same was provided by Lieutenant Governor of J&K during a press conference in Jammu.

  • The scheme proposed by Department for Promotion of Industry and Internal Trade (DPIIT) has been approved with a total outlay of 28,400 crore upto the year 2037.
  • The package will remain in force for 17 years i.e. 2020-21 to 2036-37.
  • So far, the amount disbursed under various special package schemes is Rs. 1,123.84 crore.

Aim of the Scheme:

To take industrial development to the block level in J&K.

  • Notably, this is the first time that such kind of development will take place in any Industrial Incentive Scheme of the Government of India (GoI).

Main Purpose of Scheme:

–Employment Generation, skill development and sustainable development by attracting new investment and enhancement of existing ones. It is projected that it will provide direct and indirect employment to about 4.5 lakh persons.

–Socio economic development of the area.

Incentives Provided under the Scheme:

Capital Investment Incentive: It will be provided 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).

  • Eligibility– Units with an investment upto Rs. 50 crore
  • Maximum Limit– Rs 5 crore in Zone A and Rs 7.5 crore in Zone B

Capital Interest subvention: It will be given at the annual rate of 6% for maximum 7 years on loan amount up to Rs. 500 crore for investment in the above mentioned sectors.

GST Linked Incentive: It will be provided at 300% of the eligible value of actual investment made in above mentioned sectors for 10 years. This incentive is on the lines of ease of doing business.

Working Capital Interest Incentive: It will be provided at an annual rate of 5% for maximum 5 years. With this interest subvention the scheme is likely to give indirect support to about 35,000 persons.

  • Maximum limit– Rs 1 crore.

Additional info:

–The state of J&K was reorganized on October 31, 2019 under the J&K Reorganization Act, 2019 which divided the state two union territories (UTs) viz. UT of J&K and UT of Ladakh.

–The reorganization followed the revoking of article 370 of the Indian Constitution in August 2019, which provided special status to Jammu and Kashmir from 1954.

–Since reorganization there are developments projects going on in J&K which involves initiation of metro for the first time in 2023.

–In October 2020, President Ram Nath Kovind also gave assent to J&K Official Languages Bill 2020 under which Kashmiri, Dogri and Hindi also added to the existing Urdu and English, as the official languages in U&T.

Recent Related News:

i.On December 26, 2020, Prime Minister Narendra Modi launched the Ayushman Bharat Pradhan Mantri-Jan Arogya Yojana Social Endeavour for Health & Telemedicine (PM-JAY SEHAT) Health Insurance scheme for covering all the residents of Jammu & Kashmir (J&K).

About Jammu & Kashmir:

National Parks-3: Kazinag National Park, Dachigam National Park, Kishtwar High Altitude National Park

Hydro Projects– Ratle Hydroelectric project (River Chenab), Kiru hydro-electric project (River Chenab), Pakal Dul (Drangdhuran) Hydroelectric Project (River Marusudar)

State Animal– Hangul
State Tree– Chinar