Neeraj Rohmetra
JAMMU, July 21: Concerned over the plight of industrialists across the State after expiry of Central Industrial Incentives, the Chief Minister’s Office and Industries Department have taken up the issue with the Union Commerce and Industry Ministry at different levels.
Further, the issue is also likely to discuss this month in the meeting of State Industrial Advisory Committee, which is being held under chairmanship of the Chief Minister.
Authoritative sources stated that the State Government was deeply concerned over the expiry of package of incentives to industrial sector, which was a major source of employment for the entire State.
“The State Government has strongly pleaded before the Union Commerce Minister their case and urged them to maintain status quo in all the industrial incentives being extended to the State till June 2012”, sources said.
“Since the industries serve as major source of employment in the State, we have urged the Commerce Ministry to extend these incentives to even industries located outside designated industrial estates. Earlier, the package of incentives had been given only to entrepreneurs located in the designated industrial estate of the State”, they added.
The Union Commerce and Industry Ministry had also recently conducted an Impact Evaluation Study for the Special Package Schemes, which were being extended to industrialists in the Jammu and Kashmir State. According to Arun Mahendru Balraj, Senior officer in the Department of Industrial Policy and Promotion (Special Package Section) a team of officials had interacted with all the stakeholders including industrialists during their visit in March-April this year.
The objective of the Study was to evaluate various benefits, which were being rolled out to the border State as a part of various Special Package Schemes. “The officials have submitted their detailed report to the Ministry of Commerce and the same is likely to be submitted to the Union Cabinet”, sources said.
The issue regarding ‘expiry’ of industrial incentives is also likely to be discussed on July 24 in the meeting of State Industrial Advisory Committee, which is being headed by the Chief Minister.
Commissioner-Secretary Industries and Commerce Department Shant Manu, when contacted told EXCELSIOR that the issue was being vigorously followed with the Union Commerce Ministry and regular exchange of communication is taking place at different levels.
“We were very much aware that the special incentives being extended to industrialists were to expire in June this year and have therefore had taken up the issue with Commerce Ministry several months back”, he asserted.
Even Chief Minister, Omar Abdullah had himself informed the Prime Minister, Dr Manmohan Singh vide letter bearing D.O No. IND/DIC-52/2008 dated 10 June 2011 about the expiry of these incentives. “The Government of India had granted a special package of incentives for J&K in June, 2002 in order to attract new investment to the State and the concomitant creation of substantial employment avenues”, the letter stated.
“The entire industrial sector in the State has been under severe stress as a result of the many years of unrest in the Valley. Besides, the State suffers from unique disadvantages arising out of the remoteness, poor connectivity, shallow markets and under developed infrastructure. In order to sustain the momentum of industrial activity in the State, which is one of the major employment avenues in the private sectors, there is need to continue the special incentives for a longer time. I would therefore, strongly urge that the package of incentives for Jammu and Kashmir including exemptions under the Income Tax Act be extended for a further period of 10 years”, the letter added.
The Special Package Scheme given by the Ministry of Commerce and Industry included Central Capital Investment Subsidy Scheme, Central Interest Subsidy Scheme and Central Comprehensive Insurance Scheme and all these schemes expired on June 14 this year.
The Central Capital Investment Subsidy Scheme had earlier started with subsidy of 15% of investment of plant and machinery subject to a ceiling of Rs 30 lakhs for a period of 10 years till 14 June 2012. However, with effect from 6th January, 2011, this scheme had been enhanced to 30% of investment in plant and machinery to industrial units in Micro, Small and Medium Enterprises sector commencing commercial production or becoming operational/ functional as the case many be on or after 6th January, 2011 in respect of new units or additional such investment in respect of first ceiling of Rs 3 core and Rs 1.5 crore for manufacturing and service sector respectively.
The Central Interest Subsidy Scheme involved subsidy of 3% on the working of capital loan for a period of 10 years and the Central Comprehensive Insurance Scheme involved 100% subsidy on capital investment for a period of 10 years.
Trending Now
E-Paper
Follow our WhatsApp channel