LG addresses concerns with PM, HM, DPIIT
Sanjeev Pargal
JAMMU, Dec 7: Following the allocation of a ₹28,400 crore industrial package for Jammu and Kashmir, which is on the verge of exhaustion due to the registration of 971 units, Lieutenant Governor Manoj Sinha has apparently reached out to Prime Minister Narendra Modi, Home Minister Amit Shah, and the Department for Promotion of Industrial and Internal Trade (DPIIT) of the Government of India. The aim is to increase the package to ₹75,000 crore to accommodate more registrations, as nearly 300 proposals are pending approval.
Stay updated by following the Daily Excelsior channel on WhatsApp
Officials have informed the Excelsior that the New Central Sector Scheme (NCSS), initiated on April 1, 2021, for Jammu and Kashmir with a budget of ₹28,400 crore, will remain active until 2037. However, the total allocated funds for incentives are expected to be exhausted following the registration of 971 units. Given the overwhelming response to the scheme, with approximately 300 additional proposals in waiting, the Lieutenant Governor has sought discussions with the central government’s leadership to potentially raise the package from ₹28,400 crore to ₹75,000 crore.
“A remarkable 971 industrial units have been registered throughout Jammu and Kashmir, which will be eligible for incentives until 2037 while creating employment opportunities and various facilities across the Union Territory. In light of the strong interest in the industrial development scheme, 300 more proposals are primed for approval, which would necessitate an increase in the package from ₹28,400 crore,” the officials mentioned.
Reports suggest that the Lieutenant Governor’s Secretariat has communicated with the Department for Promotion of Industrial and Internal Trade, under the Ministry of Commerce and Industry, Government of India, regarding the need to augment the financial allocation of the package from ₹28,400 crore to ₹75,000 crore to enable more proposals and boost industrial investments in Jammu and Kashmir, thereby benefiting local youth in terms of employment.
At the same time, the Lieutenant Governor is believed to have requested intervention from both the Prime Minister and the Home Minister to enhance the industrial package, ensuring an influx of more industrial investments in the Union Territory.
As per the officials, a sum of ₹28,400 crore has been earmarked for a total of 971 industrial investment proposals that have received approval. These incentives will be provided to the industries until 2037 under specific conditions stipulated in the New Central Sector Scheme. While many more proposals remain in the queue, around 300 cases are nearly finalized yet are currently in a state of uncertainty pending the Central Government’s decision on the proposed financial augmentation.
In totality, the industrial investment proposals have surpassed ₹1.25 lakh crore, according to officials.
In April 2021, the Central Government launched Jammu and Kashmir’s Industrial Policy with a budget of ₹28,400 crore, designed to stimulate the industrial landscape of the UT and generate approximately three lakh jobs. It was later anticipated that the job creation resulting from this policy could exceed initial estimates.
International investors, including those from Dubai, have also shown interest and invested in the Union Territory.
The central initiatives in Jammu and Kashmir include the J&K Industrial Policy, the J&K Industrial Land Allotment Policy for 2021-30, J&K Private Industrial Estate Development Policy for 2021-30, Policy for Promotion of Foreign Investment in the Industrial Sector in J&K (2022), J&K Single Window Rules (2021), Turnover Incentive Scheme (2021), J&K Wool Processing, Handloom and Handicraft Policy (2020), Financial Support Scheme for Cooperatives/Self Help Groups (2020), Credit Card Scheme for Artisans and Weavers (2020), Kharkhandar Scheme for the Development of Craft Sector in J&K, Export Subsidy Scheme (2021), Revised Education Scheme (2022) for Artisans and Weavers of the Handicrafts and Handloom Department, and the J&K Start Up Policy for 2024-27.
