Question: What is the period of the New Industrial Development Scheme for Jammu & Kashmir (J&K IDS, 2021) approved by Government of India for Industrial Development of Jammu & Kashmir?
(a) 2020-21 to 2030-31
(b) 2020-21 to 2032-33
(c) 2020-21 to 2040-41
(d) 2020-21 to 2036-37
Answer: (d)
Related facts:
- On 6 January 2021, the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi approved the proposal of Department for Promotion of Industry and Internal Trade for Central Sector Scheme for Industrial Development of Jammu & Kashmir.
- New Industrial Development Scheme for Jammu & Kashmir (J&K IDS, 2021) with a financial outlay of Rs.28,400 crore has been approved for the period 2020-21 to 2036-37.
- The scheme aims to transform the existing industrial ecosystem of J&K by creating more employment opportunities, skill development and sustainable development so that to compete J&K strongly with other states.
- The scheme proposes various types of incentives at investment made on manufacturing and services units.
Incentives proposed in the scheme:
- Capital Investment Incentive: At the rate of 30% in Zone A and 50% in Zone B on investment made in Plant & Machinery (in manufacturing) or construction of building and other durable physical assets(in service sector) is available. Units with an investment upto Rs. 50 crore will be eligible to avail this incentive. Maximum limit of incentive is Rs 5 crore and Rs 7.5 crore in Zone A & Zone B respectively
- Capital Interest subvention: At the annual rate of 6% for maximum 7 years on loan amount up to Rs. 500 crore for investment in plant and machinery (in manufacturing) or construction of building and all other durable physical assets(in service sector).
- GST Linked Incentive: 300% of the eligible value of actual investment made in plant and machinery (in manufacturing) or construction in building and all other durable physical assets(in service sector) for 10 years. The amount of incentive in a financial year will not exceed one-tenth of the total eligible amount of incentive.
- Working Capital Interest Incentive: All existing units at the annual rate of 5% for maximum 5 years. Maximum limit of incentive is Rs 1 crore.
- This is the first time that any industrial incentive scheme is taking the industrial development to the block level.
By-Amar Mani Upadhyay
Links:
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1686744