No decision by Centre on enhancing outlay for NCSS
Nishikant Khajuria
JAMMU, Oct 2: Uncertainty looms large over the investments worth more than Rs 15,000 crores in Jammu and Kashmir as the allocation for incentives under National Central Sector Scheme (NCSS) falls short of the estimated liability.
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While the promoters of new industrial units are worried over fate of their investments made, the Union Government failed to take decision on the request for enhancement of the outlay for incentives under the scheme, for which September 30, 2024 was the last date for accepting applications.
Official sources told the Excelsior that the Government of Jammu and Kashmir has so far received the investment proposals under the NCSS more than double the envisaged amount for which Rs 28,400 crores were provided as incentives.
As the Central incentive under the scheme was provided for an envisaged investment of approximately Rs 10,000 crores, uncertainty looms large over the fate of over Rs 15000 crore additional investment by around 600 applicants for registration, including some prominent groups like ITC, Dabur, Haldiram, Bhilwara, Cyclone Beverages etc, sources explained.
In addition to these registered and non-registered units under NCSS, sources informed that the Department of Industries and Commerce, J&K Government, has received 7059 investment proposals from across the country on J&K Single Window Portal since April 2021, involving proposed investment of Rs 1,41,962 crores having employment potential of around 5 lakh persons. These proposed investors had yet to apply for registration under NCSS.
Pertinent to mention that in April 2021, the Government of India had announced the National Central Sector Scheme (NCSS) for encouraging industrial development in Jammu and Kashmir Union Territory. The NCSS provided for four major incentives to industrial and services sector and the total budget outlay was kept at Rs 28,400 crores for establishment of industry and services sector for new as well as existing Industrial and service sector units. The scheme envisaged an investment of approximately Rs 10,000 crores for which commensurate amount of Rs 28,000 crores was provided.
However, the Department of Industries and Commerce, J&K received an overwhelming response from the investors and as on August 12, 2024, the total committed financial liability of the 915 registered units was calculated at Rs 16,378 crore while the estimation of liability of 617 registration applications under process has been calculated at Rs 54,808 crore. This takes the total estimated liability under NCSS to Rs 71,186 crores, sources explained.
Keeping in view of the huge gap between the allocation and demand, the Department of Industries and Commerce, J&K Government, is learnt to have requested the Department for Promotion of Industry and Internal Trade, Ministry of Commerce, Government of India for enhancement of the outlay for the NCSS.
According to the sources, the J&K Government has requested to enhance the outlay for the NCSS to match up to Rs 75000 crore for Industrial development of J&K.
Earlier, sources said, Lt Governor Manoj Sinha had also taken up the matter with Union Home Minister Amit Shah for enhancing the outlay for NCSS to match the investments.
As September 30, 2024 was the last date for accepting applications for registration under NCSS, sources said that no decision could be taken on enhancing the outlay by the Union Cabinet due to the Assembly elections in Jammu and Kashmir and enforcement of Model Code of Code.
Meanwhile, the shortage of allocation to meet the required demand and uncertainty over the Centre’s response to enhance the outlay for NCSS has worried the investors who have already made huge investments in creating infrastructure for their industrial units in Jammu and Kashmir.
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