Heartening is it to learn that the State of Jammu and Kashmir is poised to be better placed in comparison to the North East in terms of Industrial Development Package that was slated to result in a turnaround of industrial development in the State. Not that the State industrial units were not in dire need of certain incentives and a compact package but the same would be better than the one announced for industrially backward North East, could be felt as a slight premium or a small bonus. The Central Government has , otherwise been considerate towards ensuring the State took strides in every field and area for which funds have been keeping on being intermittently sanctioned without any frugality. To make that possible besides agriculture , industrial progress had imperatively to be ensured.
The said package for the State’s Industrial units was approved on December 22 in New Delhi in a meeting of top Industry and Commerce officials with their counterparts of Department of Industrial Policy and Promotion. We have learnt that a final notification to be issued was not on the anvil but likely to be issued in a few days only. The work on the formulation of the package had started much earlier and final touches were given by the end of November to it fructifying in finalisation and approval of the package on December 22. Keen interest was taken in this regard chiefly by the Prime Minister himself as also by the Governor and his administration for pursuing and securing it in its present form.
The salient features of the Industrial Package announced , undoubtedly shall address areas of constraints faced by our industrial units and motivate not only the present entrepreneurs mostly self employed but new ones also to set up units in this State to boost industrial growth. It is pertinent to note that concessions via the packages for the North East are confined to new industrial units only while in Jammu and Kashmir , the implementation was intended for substantial expansion , an added advantage for the State. The benefits under Plant and Machinery for Jammu and Kashmir have been raised to Rs.5 crores as against for Rs. 2 crore only in the case of North East. There were voices of certain disagreements with the system of reimbursement of the GST which have been addressed as the package includes GST reimbursement of central share of CGST and IGST for a period of five years.
As regards Income Tax , the reimbursement period stands revised to five years. Transport incentive of 20 percent for transporting by Railways or Waterways and 33 percent by air has been decided. Employment incentive of an additional 3.67 percent of employer’s contribution to EPF in addition to 8.33 percent already paid by the Central Government under Pradhan Mantri Rozgar Proutshahan Yojna . The mechanism of reimbursement of GST percentage has been demanding certain improvements and simplification of procedures. We have learnt that the State was seized of the matter and very shortly, a favourable decision was proposed to be taken in the State Administrative Council while the Centre would reimburse its due share therefrom.
It is hoped that the State shall witness an era of fast industrialization and surge in industrial output and the industrial units maintaining quality requirements so that marketability was no major issue. Now, investors would find no problems both in respect of investments as also regarding returns coupled with the assured Government support. The benefits that were given to the North East having now been extended to Jammu and Kashmir in a better form and content would vindicate the aspirations of the entrepreneurs as also result in fulfilment of long pending demands of industrialists.
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