The government has notified a package of fiscal incentives for industry in Jammu and Kashmir. The new industrial policy for the state provides for a 100 per cent excise duty exemption for 10 years to units in growth centres, industrial infrastructure development centres and other locations like industrial estates and export processing zones.
It also provides for setting up of a Jammu & Kashmir Develop-ment Finance Corpora-tion (JKDFC) by the central government with a one-time provision of Rs 50 crore. This corporation will provide term loans, working capital and other infrastructure support on the lines of North-east Development Finan-cial Corpora-tion. The corporation will be the nodal agency for routing the subsidies/incentives under various schemes notified under the policy.
The package provides for major fiscal incentives for new industrial units and existing industrial units under expansion. New industries in the notified locations will be eligible for capital investment subsidy of 15 per cent of their investment in plant and machinery, subject to a ceiling of Rs 30 lakh.
The policy, notified recently, also states that insurance premium to the extent of 100 per cent on capital investment for 10 years will be extended by the central government to all new units and to existing units on substantial expansion.
However, some industries like cigarettes/cigars of tobacco, manufactured tobacco and substitutes, distillation/brewing of alcoholic drinks and manufacture of branded soft drinks and its concentrates will be not be granted these concessions.
An interest subsidy of 3 per cent on the working capital loan will be provided to all new industrial units in the notified locations for 10 years after the start of commercial production. This benefit will also be extended to existing units in the notified locations on expansion, as well as to notified thrust industries.
The 16 thrust industries, identified by the government, include computer hardware /electronics (integrated circuits & micro assemblies), auto ancillaries, precision engineering and mineral exploration.
The present income-tax exemption would continue as per the existing dispensation applicable to J&K.
