J&K’s Industrial Upturn
In the scenic valleys of Jammu & Kashmir, a thriving industrial metamorphosis is underway, fueled by the success of the New Central Sector Scheme (NCSS). Discover how this ambitious initiative is reshaping the economic landscape and creating new opportunities for growth.
Jammu & Kashmir’s industrial sector is currently undergoing a significant and noteworthy transformation, propelled by the resounding success of the New Central Sector Scheme (NCSS).
In a recent communication received by the Industries and Commerce department, it was revealed that the collaborative initiatives undertaken by the Government of India and the UT government are not only providing a boost to investment but are also instrumental in fostering job creation and facilitating overall economic growth in the region.
Launched in February 2021 with an extensive allocation of Rs. 28,400 crore, the NCSS presents a comprehensive package of incentives strategically designed to attract businesses to Jammu & Kashmir. These incentives encompass capital investment subsidy, interest subvention, and GST-linked benefits, collectively rendering the UT an exceptionally attractive destination for aspiring entrepreneurs.
The scheme has gained remarkable momentum in just two years, evidenced by a total of 672 units registering under NCSS, underscoring its far-reaching impact.
In the fiscal year 2023-24, a total of seven Secretary Level Committee (SLC) meetings were convened under the capable chairmanship of Vikramjeet Singh, Commissioner Secretary, Industries & Commerce Department. Facilitated by Dr. Arun Kumar Manhas, Director Industries & Commerce, Jammu, and Khalid Majeed, Director Industries & Commerce, Kashmir, as Member Secretary for their respective Directorates, these meetings approved the registration of 304 units. Of these, 218 hailed from Jammu Division and 86 from Kashmir Division, spanning diverse sectors such as manufacturing and services, highlighting the scheme’s extensive reach and positive impact.
Additionally, NCSS has already commenced the disbursement of substantial incentives. In the fiscal year 2023-24, approvals included Rs. 62.5 crore through Capital Investment Incentive (CII), Rs. 19 crore through Working Capital Interest Subvention (WCIS), and Rs. 1.44 crore through Capital Interest Subvention (CIS). These approvals and subsequent disbursements are directly empowering businesses, providing them with the means to expand their operations and create new employment opportunities.
With six more SLC meetings scheduled in the remaining quarter of FY 2023-24, J&K is well on track to surpass the Department of Promotion of Industry and Internal Trade (DPIIT) target of Rs. 150 crore in incentive disbursal. This achievement would signify a significant milestone in the UT’s industrial journey.
While NCSS marks a new chapter in J&K’s industrial development, the Industrial Development Scheme (IDS) 2017 continues to play a pivotal role. Serving as a precursor to NCSS, IDS offers its own array of incentives, including central capital investment support, interest subsidy, GST reimbursement, and insurance.
In the fiscal year 2023-24, IDS SLCs approved incentives worth Rs. 13 crore for J&K, complementing the support provided by NCSS and further fortifying the industrial ecosystem in the UT. Additionally, the State level committee under Central Package I & II approved Rs. 4 crore for the Unit holders of J&K.
Moreover, beyond the central incentives, the UT Government supports industries through various incentives such as DG Set, Pollution Control Devices, etc., as outlined in the J&K Industrial Policy. To date, more than Rs. 10 crore has been approved under the State package, excluding GST Reimbursement, which is granted by the State Taxes Deptt, J&K.
The endeavors of the Industries & Commerce Department are carving a path toward a vibrant and robust industrial landscape in Jammu & Kashmir. With a dedicated focus on attracting investment, fostering innovation, and creating a conducive business environment, the UT is poised for sustained industrial growth in the years to come.
This transformation is anticipated not only to generate ample employment opportunities but also to contribute significantly to J&K’s overall economic development and prosperity.