New Delhi, Dec 22: In a major step towards boosting industrialization and economic prosperity in Jammu and Kashmir (J&K), the Department of Industrial Policy and Promotion (DIPP), Government of India approved extension of all benefits to J&K given to the Northeastern States under North East Industrial Development Scheme.
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.
According to an official spokesman, the benefits given to new Industrial Units in J&K, till June 2017, 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.
He added that these included Capital Investment Incentive of 30%, Interest Incentive of 3% and Insurance Incentives, all for 5 years.
“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 adding that these new incentives would give a tremendous boost to investment in J&K especially in MSME sector, creating new job avenues for the local youth, revenue for the Government and a huge fillip to the State economy.
This was a long-standing demand of all Chambers of Commerce in Jammu and Kashmir and of investors.