New industrial development incentives

22/02/2021

Union Government has announced new Central Sector Scheme for Industrial Development of Union Territory of Jammu and Kashmir for a period of 16 years applicable with effect from April 1, 2021. The scheme has been tailored in such a way that the existing as well as new units will get immense benefits under different components. Capital Investment Incentive, Capital Interest Subvention, Goods and Service Tax Linked Incentive and Working Capital Interest Subvention are the major components of the scheme. A total of 10 services will be eligible for benefits under the New Central Sector Scheme for Industrial Development of Jammu and Kashmir and these are tourism and hospitality services (including health and wellness tourism); services promoting film tourism (including film cities and studios); ropeways, entertainment parks and rides; heritage property restoration services; healthcare services; IT and ITeS services; maintenance and repair services; freight terminals, logistics parks and warehousing (including cold store services); testing, R&D, analysis and certification services and educational and skill development services.
A three-tier mechanism vis-a-vis governance and implementation has also been put in place. The Apex Committee will be comprised of Union Home Minister, Union Commerce and Industry Minister and Lieutenant Governor of J&K Union Territory and this committee will have the powers to decide upon any modification in the scheme within its overall financial outlay. There will be a Steering Committee comprising of Secretary DPIIT, Secretary Ministry of Home Affairs, Secretary Ministry of Environment, Forest and Climate Change, Secretary MSME Ministry, representative of NITI Aayog, Additional Secretary of DPIIT, Chief Secretary of J&K and Joint Secretary of DPIIT. The mandate of this committee will be to monitor the smooth implementation and issue detailed guidelines for execution. Merely submitting application for registration will not entitle any applicant for registration under this scheme and no unit will have the right to register under this scheme or claim the benefits unless it is specifically approved by the registering authority. All units willing to avail incentive(s) under this scheme will have to apply for registration through the online portal. As per the notification, the service sector units with a minimum investment of Rs 1 crore in building and other durable physical assets will be eligible for incentives under this scheme and all eligible units will have to commence commercial production/operation within 3 years from the date of grant of registration. The units availing benefits under other schemes of the Government of India will not be eligible for similar incentives under the new scheme. As far as Capital Investment Incentive is concerned, new units with investment of not more than Rs 50 crore in Plant & Machinery (for manufacturing sector) or building and all other durable physical assets (for service sector) will be eligible to avail this incentive in both Zone A and Zone B.

Photo Gallery

BSE Sensex

NSE Nifty