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Industrial package for J&K

Industrial development in Jammu and Kashmir has once again been accorded a priority in Central Government’s scheme of things. A package of incentives for industrial development in the state has recently been unveiled by the Union Government, which includes total exemption of excise duty. According to the government’s plan, the package would be applicable for new industrial units as well as for expansion projects of the existing units. However, in the case of expansion projects the package would be applicable provided the expansion was "substantial." The incentives would be available for 10 years from the date of the commencement of production. According to available reports, the package also includes setting up of Jammu and Kashmir Development Finance Corporation, with a one time provision of Rs. 50 crores; provision of a capital investment subsidy at the rate of 15 per cent of the investment in plant and machinery, with a ceiling of Rs. 30 lakhs; and provision of a Central interest subsidy of three per cent on working capital. Besides, the package also includes a comprehensive insurance scheme, under which insurance premia upto the extent of 100 per cent would be borne by the Central Government for 10 years. The package, which was announced by Union Minister Pramod Mahajan, said that this would be extended to identified thrust industries, irrespective of the location in the State.  q

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