J-K gets northeast industrial development package
In a major step towards promoting industrialisation and economy in Jammu and Kashmir, the Centre Friday extended all benefits under North East Industrial Development Scheme to the state.
The Department of Industrial Policy and Promotion (DIPP), Friday approved extension of all benefits to J&K given to the Northeastern states under North East Industrial Development Scheme, an official spokesman said.
Till June 2017, the benefits given to new industrial units were largely similar to the incentives extended to Northeastern states under the scheme, he added.
"However, when a new scheme was approved for Jammu and Kashmir separately in 2017, only 3 benefits given to the Northeast were extended to J&K," the spokesperson said, adding that these included Capital Investment Incentive of 30 per cent, Interest Incentive of 3 per cent and Insurance Incentives - all for 5 years.
The benefits given to the Northeast region, such as GST reimbursement, Income Tax reimbursement, transport incentive and employment incentives were not extended to Jammu and Kashmir.
"In fact, these incentives are critical to attracting new investment and consequently, very few units took advantage of this scheme," he said.
The spokesman said following the intervention of the Governor Satya Pal Malik and efforts by the J&K's Industries Department with the concerned Union ministries, the DIPP, the Centre today finally approved the extension of the benefits of the Northeast Industrial Development Package to Jammu and Kashmir as well.
The key additional benefits include - GST reimbursement of Central Share of CGST and IGST for 5 years, Income Tax reimbursement for 5 years, Transport Incentive of 20 per cent for transport by Railways or Waterways and 33 per cent by Air and Employment Incentive of an additional 3.67 per cent of employer's contribution to EPF in addition to 8.33 per cent already paid by the central government, he said.
This was a long-standing demand of all Chambers of Commerce in Jammu and Kashmir and investors, the spokesman said, adding that these new incentives would give a tremendous boost to investment in Jammu and Kashmir especially in MSME sector.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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