In a major step towards promoting rapid industrialization and economic prosperity in Jammu and Kashmir, the Department of Industrial Policy and Promotion (DIPP), Government of India today approved extension of all benefits to J&K given to the Northeastern States under North East Industrial Development Scheme.
According to an official spokesman, till June 2017, the benefits given to new Industrial Units in Jammu and Kashmir were largely similar to the benefits extended to Northeastern States under the Industrial Development Scheme of the Government of India.
“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 and added that these included Capital Investment Incentive of 30%, Interest Incentive of 3% and Insurance Incentives – all for 5 years.
The benefits given to the Northeast, 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.
He said following the intervention of the Governor Satya Pal Malik and persistent efforts by the J&K’s Industries Department with the concerned Union Ministries, the Department of Industrial Policy and Promotion, Government of India 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% for transport by Railways or Waterways and 33% by Air and Employment Incentive of an additional 3.67% of employer’s contribution to EPF in addition to 8.33% already paid by the Central Government under PMRPY.
This was a long-standing demand of all Chambers of Commerce in Jammu and Kashmir and of investors, the spokesman said adding that these new incentives would give a tremendous boost to investment in Jammu and Kashmir especially in MSME sector, creating new job avenues for the local youth, revenue for the Government and a huge fillip to the State economy.