Centre likely to extend industrial package to J&K by 5 yrs

Mohinder Verma
JAMMU, Feb 25: The Union Government is likely to extend industrial package to Jammu and Kashmir by another five years and Department of Industrial Policy and Promotion (DIPP) under the Union Ministry of Commerce and Industry has sought details about the thrust industries from the Industries and Commerce Department of the State Government within 15 days so that the information could be incorporated in the Cabinet memorandum to be submitted to the Cabinet Committee on Economic Affairs (CCEA) in this regard.
Authoritative sources told EXCELSIOR that in a latest round of discussion held with the Secretary, Department of Industrial Policy and Promotion Saurabh Chandra at Union Capital few days back, it was conveyed to the State Government that Union Ministry of Commerce and Industry has agreed to extend the industrial package to Jammu and Kashmir by five years instead of 10 years and a Cabinet memorandum is being prepared for placement before the Cabinet Committee on Economic Affairs for approval.
The fresh industrial package would be given effect from June 14, 2012 when the earlier package of incentives sanctioned for 10 years in 2002 had expired, sources said while disclosing that the Department of Industrial Policy and Promotion has not put any weight behind the demand of Jammu and Kashmir Government to extend the package for another 10 years and bring the industrial units outside the industrial estates under the ambit of the fresh package.
While seeking location neutrality under the new industrial package, the State Government in a detailed representation to the Department of Industrial Policy and Promotion has stated: “As per the land laws applicable in J&K, non State Subjects cannot purchase or get private lease of land and all the outside entrepreneurs are accommodated in the organized industrial estates only. Since the Government of India package is applicable only in identified locations, neither the benefit of this package could be fully availed by the entrepreneurs of the State nor the industry could disburse in the hilly and backward areas of the State. So the package should be made location neutral as had been done in the States of North East, Himachal Pradesh and Uttrakhand in order to provide benefits of incentives to the units outside the industrial estates”.
Though location neutral demand has been out-rightly rejected by the Department of Industrial Policy and Promotion, it has, however, given an indication that industrial units in clusters outside the industrial estates and thrust industries could be considered for extension of benefit of incentives, sources informed, adding the DIPP Secretary has given 15 days time to the Industries and Commerce Department of State to furnish details in this regard so that the same could be incorporated in the Cabinet memorandum being prepared for placement before the Cabinet Committee on Economic Affairs.
In response to a question, sources said, “in the context of Jammu and Kashmir, the thrust industries are handicrafts, eco-tourism and exploration of minerals etc and Industries and Commerce Department has started preparing a detailed note in this regard for onward submission to the Department of Industrial Policy and Promotion”.
It is worthwhile to mention here that 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. The Government of India package announced in 2002 was supplemented by the State Government under the State Industrial Policy, 2004.
“Additional incentives are available to the industrial units in addition to the Government of India package like subsidy on diesel generating set, subsidy on quality testing equipment, subsidy on pollution control devises or some exemptions like Toll Tax exemption on inward and outward raw material/finished goods in the State and exemption from payment of VAT”, sources said.
Sources further said, “as far as new industrial estates are concerned, 3500 kanal of land has been acquired in Ghatti, Kathua and at present the clearance of this industrial estate is stuck up with the Environment Ministry”, adding “the acquisition of 122 kanal of land at Rajouri, 142 kanal at Poonch, 39 kanal at Doda, 235 kanal at Udhampur and 123 kanal Silk Cluster Rajouri is going on for establishment of industrial estates”.

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