Jammu & Kashmir's industrial sector is witnessing a remarkable transformation, catalysed by the success of New Central Sector Scheme (NCSS) and the Industrial Development Scheme (IDS). These initiatives, implemented by the Government of India and the UT Government, are providing impetus to investment, job creation and overall economic growth in the region.
Launched in February 2021 with a substantial outlay of Rs. 28,400 crore, NCSS offers a comprehensive package of incentives to attract businesses to Jammu & Kashmir. These incentives included capital investment subsidy, interest subvention and GST-linked benefits, making the UT a sought after destination for entrepreneurs.The scheme has gained impressive momentum in just three years, with a total of 838 units registered under NCSS, a testament to its impact.
In FY 2023-24, a total of ten Secretary Level Committee (SLC) meetings were held, under the chairmanship of Vikramjeet Singh, Commissioner Secretary, Industries & Commerce and facilitated by Dr. Arun Manhas, Director Industries & Commerce, Jammu, and Khalid Majeed, Director Industries & Commerce, Kashmir as its member secretaries.
These meetings, till date, have approved the registration of 372 units, with 240 from Jammu division and 132 from Kashmir division. These units represent a diverse range of sectors, including manufacturing and services, indicating the scheme's broad reach and impact.
Furthermore, the Department of Industries and commerce has approved substantial incentives during the current financial year. In FY 2023-24, Rs. 85.15 crore stands approved under Capital Investment Incentive (CII), Rs. 27.45 crore under Working Capital Interest Subvention (WCIS), and Rs.7.48 crore through Capital Interest Subvention (CIS).
It is pertinent to mention here that Goods and Services Tax Linked incentive (GSTLI) is the most important incentive under the New Central sector Scheme and in the current Financial year the approval for Rs 40.80 crore under GSTLI stands given. The disbursements are directly empowering businesses, enabling them to expand their operations and create new employment opportunities.
J&K has surpassed the Department of Promotion of Industry and Internal Trade (DPIIT) target of Rs. 150 crore in incentive approval. This achievement is a significant milestone in the UT's industrial journey.
While NCSS marks a new chapter in J&K's industrial development, the Industrial Development Scheme (IDS) 2017 continues to play a crucial role. Launched as a precursor to NCSS, IDS offers its own set of incentives, including central capital investment support, interest subsidy, and GST reimbursement.
In FY 2023-24, IDS SLCs approved incentives worth Rs. 22.44 crore for Jammu division and Rs. 3.92 crore for Kashmir division. These additional incentives complement the support provided by NCSS, further strengthening the industrial ecosystem in the UT.
The combined efforts of NCSS and IDS are paving the way for a vibrant and robust industrial landscape in Jammu & Kashmir. With a focus on attracting investment, fostering innovation, and creating a conducive business environment, the UT is poised for sustained industrial growth in the years to come. This transformation will not only generate employment opportunities but also contribute significantly to J&K's overall economic development and prosperity.