Industry development in J&K
Nishikant Khajuria
JAMMU, Apr 2: The Department for Promotion of Industry and Internal Trade (DPIIT), Union Ministry of Commerce & Industry has issued general operational guidelines for the registration of units under the new Central scheme for industrial development in Jammu and Kashmir.
Registration under the scheme has commenced from April 1, 2021 and will continue till September 30, 2024 while all applications for registration shall be disposed of by March 31, 2025, unless otherwise extended.
As per the guidelines, the applicant unit willing to avail incentives under the scheme, has to apply for registration through online portal jknis.dipp.gov.in along with certain documents enclosed, which include Detailed Project Report, bank loan sanction letter, land documents, PAN, GSTIN, etc.
The heritage property, not in use before April 1, 2021 and restored thereafter for commercial or hospitality or tourism services on commercial basis, will also be considered as new unit, if fulfilling certain eligibility conditions.
The heritage property under the scheme shall include monuments notified under ASI, monuments notified by the State Government under Ancient Monuments Preservation (Amendment) Act, 2010, heritage sites notified under J&K Heritage Conservation and Preservation Act, 2010 and heritage monuments listed by recognized agencies such UNESCO, INTACH, etc
Further, the restoration of such heritage property should have been done on the basis of a conservation plan prepared/vetted by INTACH, J&K or a qualified conservation body duly notified by the UT.
The guidelines also make it clear that merely submitting application will not entitle any applicant for registration under the scheme as certain requirements shall be taken into consideration for granting registration to the unit.
Submission of required documents from the authorized authority to run the unit, fixed financial assets, availability of land, required power connection, adequate required infrastructure to run the unit, source of finance, employment generation potential, sustainability to run the unit are among the conditions, which shall be taken into consideration for granting the registration.
A Secretary Level Committee and a Chief Secretary Level Committee have been designated for approval of grant of registration of the units having assets up to Rs 500 crores and more than Rs 500 crores, respectively.
If any unit is availing or has availed any incentive envisaged in this scheme, from other scheme of Government of India, it will not be eligible for those incentives under this scheme. The unit has to opt to receive such incentive only from any one of the schemes.
The core components of plant and machinery, which will be eligible to avail any incentive under this scheme, include the cost of mother production equipment essential for carrying out manufacturing activities.
However, in this sector, loading and unloading charges, sheds/building for plant and machinery, Miscellaneous fixed assets such as DG sets, excavation/mining equipment, handling equipment, working capital including raw material, commissioning cost, storage equipment, weigh bridge, laboratory testing equipment etc will not be eligible to avail any incentive under this scheme.
Similarly, for the service industry, cost of construction of building and other durable physical assets essential for carrying out the service activities, will be eligible to avail incentives under this scheme while cost of land, consumable, disposables or any other item charged to revenue, will not be eligible to avail the incentives.
In the case of Houseboats, the entire houseboat project along with its fitting and furnishing shall be treated as building and physical durable assets while in case of hotels and resorts, the investment in filtration plant for swimming pool, water purification plan, hot water boiler and room heating equipment, water softening plant, AC plant, cold storage equipment, laundry equipment cooler and refrigeration, sewerage disposal plant, tents for camping, kitchen equipments, fire fighting equipments, lift and escalators, tube well along with pumping sets, projectors, adventure and water sports equipments among 23 items shall be considered as fixed durable assets.
Eligible building and physical durable assets of Service Sector also include tourism and hospitability services, promoting film tourism, ropeway, entertainment parks and rides, heritage property restoration services, healthcare services such as hospitals, diagnostic labs, AYUSHG Centres, IT services, maintenance and repair services, freight terminals, logistic parks and warehousing, testing, R&D analysis & certification services, educational & skill development services.
Pertinent to mention that the Government of J&K had recently announced a new industrial developmental scheme with a total outlay of Rs 28,400 crore to encourage new investment and to take industrial development to the block level and far-flung areas of the Union Territory.
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