Jan 11, 2019

The Department of Industrial Policy and Promotion (DIPP) vide a Notification dated January 03, 2019, has amended the ‘Industrial Development Scheme for the State of Jammu & Kashmir, 2017’. The DIPP had introduced the Scheme in order to boost industrialization in the State of Jammu and Kashmir. The Scheme is applicable to all new industrial units and existing industrial units undertaking substantial expansion in manufacturing sector and services sector including Bio-technology and Hydel Power Generation Units up to 10 MW located in the State of Jammu and Kashmir. Under this Scheme, all eligible industrial units will be entitled to benefits under one or more components of this scheme, even if such units are getting benefits under other schemes of the Government of India.

The following major amendments have been made:

a.       Para 3 of the Industrial Development Scheme for the State of Jammu and Kashmir, 2017 which specifies the ‘Commencement and Duration’ has been replaced as under:

Para-3 Commencement and duration – It will be effective from June 15, 2017 and will remain in force up to March 31, 2020. (i) Goods and Services Tax (GST) Reimbursement, (ii) Income Tax (IT) Reimbursement, (iii) Transport Incentive (TI) and (iv) Employment Incentive (EI) shall also be extended to the units which register under the scheme. Benefits will be available up to March 31, 2020.

b.      The existing Para 4.4 has been replaced as under”

4.4 The total benefits from all components of the scheme put together shall be limited to the total investment in plant and machinery subject to a maximum limit of Rs. 200.00 crore per unit. Plant and Machinery for the service sector industrial unit shall include cost of construction of building and all other durable physical assets basic to the running of that particular service industry but exclude cost of land and consumables, disposables or any other item charged to revenue.

c.       Under Para 6, which mentions the different incentives which will be provided to eligible industrial units, new sub paras have been added, namely:

·         Para 6.5: Goods and Services Tax (GST) Reimbursement 

·         Para 6.6: Income Tax (IT) Reimbursement 

·         Para 6.7: Transport Incentive (TI) 

·         Para 6.8: Employment Incentive (EI)

The other provisions and Annexure in the Notification No. 2(2)/2018-SPS dated April 23, 2018 shall remain unchanged.

[Notification F. No. 2(2)/2018-SPS]

URL: http://egazette.nic.in/WriteReadData/2019/194831.pdf

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