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

The Government of India has approved the Central Sector Scheme for Industrial Development of Jammu and Kashmir. The scheme is approved with a total outlay of Rs. 28,400 crore up to the year 2037. The Government has formulated the New Industrial Development Scheme for Jammu and Kashmir (J&K IDS, 2021) as the Central Sector Scheme for the development of Industries in the UT of Jammu and Kashmir. Also Read | First shot of coronavirus vaccine in Punjab to be taken by Capt Amarinder This will generate employment which directly leads to the socio-economic development of the area. Also Read | India likely to administer first COVID-19 vaccine soon Features of the Scheme:

• It is made attractive for both smaller and larger units. Smaller units with an investment in plant and machinery up to Rs. 50 crore will get a capital incentive up to Rs. 7.5 crore and get capital interest subvention at the rate of 6 percent for a maximum of 7 years.
• 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.

• 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.
• Scheme envisages the greater role of the UT of J&K in registration and implementation of the scheme while having proper checks and balances by having an independent audit agency before the claims are approved.
• It is not a reimbursement or refund of GST but gross GST is used to measure eligibility for industrial incentives to offset the disadvantages that the UT of J&K faces.
• Earlier schemes though offered a plethora of incentives. However, the overall financial outflow was much lesser than the new scheme.

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