J&K gets industrial package better than NE
   22-Dec-2018
 
 
In a major move to promote rapid industrialization and economic prosperity in Jammu and Kashmir, the Department of Industrial Policy and Promotion (DIPP), Government of India Friday approved extension of all benefits given to the Northeastern States under North East Industrial Development Scheme to the state. Though the Government said it is extending the similar industrial package that it has been providing in North-Eastern (NE) states yet the extended provisions would be better that theirs (NE states). The final notification in this regard would be issued in the next few days.
 
 
 
 
 
According to an official spokesperson 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”. These benefits included Capital Investment Incentive of 30%, Interest Incentive of 3% and for 5 years. The benefits extended to the Northeast, such as GST reimbursement, Income Tax reimbursement, transport incentive and employment incentives were not extended to Jammu and Kashmir. But the Department of Industrial Policy and Promotion, Government of India finally approved the extension of the benefits of the Northeast Industrial Development Package to Jammu and Kashmir as well.
 
 Important highlights of this decision 
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 benefits of the Northeast Industrial Development Package will now be extended to Jammu and Kashmir as well.
The benefits given to the North East, such as GST reimbursement, Income Tax reimbursement, transport incentive and employment incentives were not extended to Jammu and Kashmir earlier.
The package in North East is confined to new industrial units only but in Jammu and Kashmir, it will be implemented for substantial expansion also.
The benefits under plant and machinery were confined to Rs 2 crore in North East while in the case of Jammu and Kashmir; the benefits have been raised to Rs 5 crore.
Key benefits in the Industrial Development Package included GST reimbursement of Central share of CGST and IGST for a period of five years, Income Tax reimbursement for five years, Transport incentive of 20 percent for transport by Railways or Waterways and 33 per cent by air and Employment incentive of an additional 3.67 percent of employer’s contribution to EPF in addition to 8.33 percent already paid by the Central Government under Pradhan Mantri Rojgar Protsahan Yojana(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.