J&K’s Industrial Policy comes out with big promises for investors

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<strong>The Government of Jammu and Kashmir has finally rolled out a comprehensive industrial policy which, its architects believe, would lead to an unprecedented growth and transformation of the economy in the next ten years.</strong></p>
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Ending a long wait of start-ups and entrepreneurs, Lieutenant Governor Manoj Sinha’s administration on Monday, 19 April, brought out Jammu and Kashmir Industrial Policy 2021-30, offering local aspirants as well as entrepreneurs all across the country incentives for setting up manufacturing and services in the Union Territory. This is in addition to the new Central scheme for industrial development of Jammu and Kashmir rolled out on 19 February 2021.</p>
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The UT’s Industrial Policy 2021-30 focuses on micro, small and medium enterprises (MSMEs) for the purpose that these contribute 8% of the GSDP and employ the largest number of people in the manufacturing and services sector. According to the document, 25000 MSMEs contribute 60% of the total investment and 90% of the total employment in the UT’s industrial sector.</p>
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Launched with the slogan “J&K—Tradition, Growth and Transformation”, the new policy endeavours to attract substantial investment across the focus sectors, generate employment and develop backward regions.</p>
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Almost all the previous industrial policies—introduced in 1995, 1998, 2004 and 2016—concentrated mainly on promotion of cottage industries in the handloom and handicrafts sector and steel fabrication units.</p>
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This is for the first time that the key focus sectors include MSMEs in Tourism & Hospitality services, including health and wellness tourism, Film Tourism including film cities and studios, Ropeways, Entertainment Parks and Rides, Heritage Property Restoration services, healthcare services, IT and ITeS services, Freight Terminals, Logistic Parks and Warehouses including Controlled Atmosphere Storages, Testing, R&D Analysis and Certification services and Educational and Skill Development services.</p>
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The envisaged mission is to drive industrial growth in an environment of stability wherein dynamic competition is allowed to help in the betterment of traditional core sectors, such as Agriculture and allied sectors, Food processing, Tourism, Handicrafts and Handlooms, Health, Education etc. as well as New-age Technology driven sectors like Pharmaceuticals, IT and ITEs, Skill Development etc. leading to economic vibrancy and human resource development dividends for the high potential Union Territory of Jammu and Kashmir.</p>
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Under the new policy, there shall be 100% subsidy on purchase/installation of diesel generator sets, 60% subsidy on purchase/installation of pollution control devices, 30% subsidy on obtaining quality certificates, 30% subsidy on automation and 50% subsidy on green environment protection initiative.</p>
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As per the procedural guidelines for availing of incentives under this scheme, 60% subsidy shall be available on purchase and installation of pollution control devices, subject to an upper ceiling of Rs 50 lakh per unit. The units undertaking substantial expansion shall be eligible only for the balance amount out of the maximum ceiling of Rs 50 lakh, if some amount of subsidy has already been availed by the unit in the earlier policies.</p>
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The industrial units procuring quality certification like ISO, ISI, BIS, FPO, BEE, AGMARK, ECOMARK etc shall be given a subsidy of 30 percent of the total cost incurred for obtaining the said certificate, subject to a maximum of Rs 2 lakhs as certified by the Chartered Accountant.</p>
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One of the most attractive features of the new industrial policy is 100% SGST reimbursement for the first 10 years after commissioning of the project which is not offered by any State in northern India. There will also be a 100% exemption on Stamp Duty on all land transactions including lease land and mortgage deed. The Government would act as a facilitator rather than a regulator and all the UT-related services, consents and permissions required to set up and operate an industry shall be provided through a single window portal.</p>
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Effective integration between industry and infrastructure shall be endeavoured by developing industrial corridors having world-class infrastructure such as high speed transportation network, logistic parks and common facilitation centres.</p>
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The DIC shall approve the incentive cases up to Rs 5 lakh in the District Level Committee and the incentive cases from Rs 5 lakh to Rs 50 lakh shall be approved by Division Level Committee while the incentive cases exceeding Rs 50 lakh shall be approved by UT Level Committee.</p>
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As the Government would be providing land against reasonable premium and nominal rentals to the aspiring entrepreneurs, a state-of-the-art industrial land bank would be developed across the UT. The allotment of the land on lease in industrial estates would be made as per the Jammu and Kashmir Industry Industrial Land Policy of 2021 of 19 April 2021.  </p>
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President Federation Chamber of Industries Kashmir (FCIK) Shahid Kamili in a statement said that the industry is hopeful that it will promote sustainable, equitable growth in all the regions of J&K. “FCIK appreciates the Government for fixing a timeline of approval of cases at different level. This reflects the seriousness of the Government in reviving industry in J&K. The turnover based incentives and SGST reimbursement will ensure accountability and to promote genuine entrepreneurs”, Kamili said.</p>
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While speaking at a webinar organized by Associated Chamber of Commerce and Industries of India (ASSOCHAM) on Thursday, Principal Secretary Industries and Commerce Ranjan Prakash Thakur asserted: “This industrial package is the best any state has received till now. Though the amount is Rs 30,000 crores, it can be doubled if required in the coming days”.</p>
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“Despite being a landlocked state, I can assure that land will not be a problem for those who have good ideas for industries. Lieutenant Governor is very much serious on the development of J&K and the new policy will be implemented in a very transparent manner”, Thakur added.</p>