NEW DELHI/SRINAGAR: The Centre on Wednesday approved a Rs 28,400-crore new industrial developmental scheme, paving the path for attracting investments and creating jobs for the youth in the militancy-hit Jammu and Kashmir.
The Cabinet Committee on Economic Affairs (CCEA), headed by the Prime Minister, on Wednesday approved the proposal of Department for Promotion of Industry and Internal Trade for Central Sector Scheme for Industrial Development of Jammu & Kashmir.
The scheme will stay in force till 2037, and Rs 1,123.84 crore has already been disbursed under various special packages, the government said, in a statement.
Welcoming the approval given by the Cabinet Committee on Economic Affairs to the Central Sector Scheme for Industrial Development of Jammu and Kashmir, Union Home Minister Amit Shah said the decision illustrates how the Union Territory holds a ‘special place’ in heart of Prime Minister Narendra Modi.
According to CCEA, the provisions of the scheme aim at drawing both small and large units. Smaller units with an investment in plant and machinery up to Rs 50 crore will get a capital incentive up to Rs 7.5 crore and get capital interest subvention at the rate of 6% for a maximum of seven years.
The scheme, as per the committee, has been simplified on the lines of ease of doing business by bringing one major incentive – GST Linked Incentive – that will ensure less compliance burden without compromising on transparency.
Shah said that the scheme will prove to be a boon for cottage industry, handicrafts, micro, small and medium industries of Jammu & Kashmir.
“Prime Minister Narendra Modi has started development in Jammu & Kashmir by ridding it of terrorism and separatism. It is Modiji’s visionary leadership as a result of which, for the first time, a scheme is taking industrial development to the block level,” Shah said.