JAMMU: A training workshop for the Officers of Industries and Commerce Department on New Central Sector Scheme for Industrial Development of Jammu and Kashmir was held today here under the chairpersonship of Director I&C Anoo Malhotra.
Joint Director (M&P), Trishala Kumari; Joint Director (Dev), Ved Parkash, besides General Managers of DICs attended the meeting along with Functional Managers and Project Managers.
The Director, Industries and Commerce Jammu welcomed the participants and exhorted them to ensure the scheme is implemented in letter and spirit for holistic and equitable development of Industries in J&K.
Pawan Goswami, Functional Manager, Shahzada Noor-ul-Ain, Functional Manager along with Knowledge Partners from E&Y guided officers regarding operation of new Central Sector Scheme.
It was explained that the Present scheme aims to take industrial development to the block level in UT of J&K, which is first time in any Industrial Incentive Scheme of the Government of India. The financial outlay of the proposed scheme is Rs.28400 crore for the scheme period 2021-22 to 2036-37.
It was further stated that with GST linked Incentive upto 300% of investment in Plant & Machinery are available to the Unit holders, the scheme aims to Incentivise to New Units.
The scheme is made attractive for both smaller and larger units. JKDFC is the nodal agency for release of Incentives under various components of the scheme
The officers outlined key features including Zoning of blocks for the purpose of availing incentives to bolster Industrialisation in relatively underdeveloped regions of Jammu and Kashmir and different fiscal incentives available under the scheme-the Capital Investment Incentive, Capital Interest subvention, Goods & Service Tax Linked Incentives, Working Capital Interest Linked Incentive.
On Capital Investment Incentive, the officers stated that both new and existing units are Eligible for the incentive with maximum investment of Rs 50 crore in fixed assets including P&M & construction of Building and Capital Incentive provided at a rate of 30% in Zone A and 50% in Zone B on the investment made in Plant & Machinery (in manufacturing) or construction of the building & installation of other durable fixed assets (Service sector) limiting to Rs 5 crore & Rs 7.5 crore for Zone A and Zone B.
Existing unit can get incentive for expansion once during the tenure of the scheme and New units under the scheme will not be eligible to avail benefit under substantial expansion.
In Capital Interest subvention, both new and existing units are eligible for loan availed on P&M , construction of Building and other fixed assets(Service Sector unit with investment more than 1 crore).
Eligible units can avail incentive at annual rate of 6% for a maximum of 7 years on loan amount disbursed up to Rs. 500 crore for investment in plant and machinery (in manufacturing) or construction of the building Eligible unit liable to pay a minimum amount of interest at the annual rate of 2% .Incentive is applicable on the loans availed from a Scheduled Commercial Banks or Financial Institutions registered by Reserve Bank of India.
As far as Goods & Service Tax Linked Incentive is concerned, It was explained that Incentive is available upto 100% of the Gross payment of GST for 10 years from date of commencement of operations or the validity of scheme whichever is earlier with a carryover facility limited to 10 years if not claimed and Incentive paid in one financial year will not exceed one-tenth of the total amount of eligible incentive as per GST return filed for same period. It was stated that two separate units cannot have same GST no’s to avail the benefit.
The Officers elaborated that in Working Capital Interest Linked Incentive all existing units both in zone A and zone B having GST registration are eligible for the incentive and Eligible units can avail interest subvention of 5% on working capital loan for a maximum of 5 consecutive years from the date of grant of registration under this scheme.
The new scheme while encouraging new investment, also nurtures the existing industries in J&K by providing them working capital support at the rate of 5% for 5 years.
The Director, Industries and Commerce reiterated that the Scheme has the potential to bring about radical transformation in the existing industrial ecosystem of J&K with emphasis on job creation, skill development and sustainable development by attracting new investment and nurturing the existing ones, thereby enabling J&K to compete nationally with other leading industrially developed States/UTs of the country and onus now lies on Industries and Commerce Department to make sure that the scheme translates its objectives into success on ground.