Neeraj Rohmetra
Jammu, June 11: In a major boost to the State’s economy, the Union Ministry of Commerce has issued the formal notification pertaining to extension of industrial package to the State for another five years.
Top official sources from New Delhi said, “the notification, which was issued at 6.00 pm today by the Commerce Ministry would be effective from 14 June, 2013, when the earlier package of incentives had come to an end”. They added: “the package, which has brought cheers to entrepreneurs across the State is worth nearly Rs 296 crore and has several important features. Though, the package has been extended for five years, there is provision for further extension of package at the end of this period”.
Sources said, “Chief Minister, Omar Abdullah had himself taken up the issue of extension of package in his separate meetings with Prime Minister, Dr Manmohan Singh and Union Finance Minister, P Chidambaram”, adding, “top brass of State’s Industries Department had been vigorously pursuing the issue at different levels with incumbents of Union Finance and Commerce Ministry for the past several months”.
Confirming the issuance of notification, Commissioner/ Secretary Industries, Shantmanu told EXCELSIOR, the notification for extension of the industrial package for another five years has been issued today. The package of incentives would be applicable from June, last year.
“There are several important features of the freshly announced industrial package. Two key features of the package are inclusion of all the thrust areas, recommended by the State Government and applicability of the package to all new upcoming industrial estates in the border State”.
EXCELSIOR had exclusively reported last month that the Union Finance Ministry had given nod to the extension of industrial package to Jammu and Kashmir by five years and Department of Industrial Policy and Promotion under the Union Ministry of Commerce and Industry was likely to be issued notification in this regard.
Central Capital Investment Subsidy Scheme, Central Interest Subsidy Scheme, Central Comprehensive Insurance Scheme and Transport Subsidy Scheme have been approved by the Union Finance Ministry under the new package.
Sources said, “the State Government has recommended the names of 20 estates, which are all set to be established during the current financial year. Out of the 20 industrial estates which will be brought under the ambit of industrial package eight are coming up in Jammu region and 12 in Kashmir valley”, adding, “industrial estates of Jammu are being established at Ghatti, Govindsar Phase-II, Industrial Growth Centre (IGC) Samba Phase-III, Hiranagar, Thandapani and Lamberi in Rajouri district, Kishtwar, Majalta in Udhampur district and Nimbla in Reasi district”.
“The land for majority of these industrial units has already been acquired while as process for the others are in advanced stage. All these industrial estates will be established within next one year and industrial activities will start with the beginning of 2014-15 financial year”, source asserted.
Responding to a query, sources said that with these 20 upcoming industrial estates the number of estates to be benefitted due to new industrial package would rise to 70 as 50 estates across the State had received benefits during the previous package which expired on June 14, 2012. Under the previous package, the State Government claimed Rs 124 crore from the Union Government in 10 years.
Another important feature of the package is, that several new thrust industries have been covered under the package and these included handicrafts, eco-tourism and exploration of minerals etc..
As reported earlier in this newspaper, under the new package excise and income tax subsidy has not been provided in the renewed package of incentives.
Even the demand of the State Government regarding making the package location neutral had been turned down by the Union Government on various grounds.
While seeking location neutrality under the new industrial package, the State Government had submitted that due to locations specific previous package neither the benefit could be fully availed by the entrepreneurs of the State nor the industry could disburse in the hilly and backward areas of the State.
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