Central Government Scheme for Industrial Development of J&K
The Cabinet Committee on Economic Affairs recently chaired by Prime Minister Narendra Modi approved an ambitious scheme to boost the industrial development of Jammu and Kashmir. The Government of India has allocated 28,400 crores of Rupees for the industrial development of Jammu and Kashmir scheme. The funds are to be used to develop industrial sector of the territory till 2037.
What are the key features?
- The main objective of the scheme is to generate jobs that will lead to economic development and boost industry and service later development of the union territory. This in turn will attract new investment.
- The scheme is ambitious as it offers attractions to both large and small industrial units.
What are the incentives offered by the scheme?
The scheme offers incentives as follows:
- The scheme will provide capital investment incentive at 30% in zone.
- It will provide investment incentive of 50% in Zone B. This includes investment in manufacturing and construction sector.
- The maximum limit of incentive is 5 crores of Rupees in zone a and 7.5 crores of Rupees in Zone B respectively.
- The scheme will provide interest subvention at an annual rate of 6 pc for 7 years on loan amounts up to 500 Crores of rupees.
- The GST linked incentive will be three hundred percent of the eligible value of actual investment.
- The amount of incentive provided should not exceed one tenth of the total eligible amount of incentive.
What are the employment benefits of the scheme?
The scheme is expected to attract major investments and provide 4.5 lacs of direct and indirect employment in the region.
What are the investments made by the GoI in J&K after Abrogation of Article 370?
So far, the central government has invested a total of 1123 crores of Rupees as a part of industrial policy in the region of Jammu and Kashmir.
Category: Economy & Banking Current Affairs