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Industrial Hub

March 19, 2024
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The New Central Sector Scheme (NCSS) was launched in February 2021 with a substantial outlay of Rs. 28,400 crore. The scheme aimed to attract businesses to the region by offering a comprehensive package of incentives. In just three years, NCSS has gained impressive momentum by registering 838 units. One of the key highlights of NCSS is its broad range of incentives, including capital investment subsidy, interest subvention, and GST-linked benefits. These incentives have made Jammu & Kashmir a sought-after destination for entrepreneurs looking to establish or expand their businesses. The scheme has seen a diverse range of sectors benefiting from its provisions, including manufacturing and services, showcasing its wide-reaching impact. In the fiscal year 2023-24, ten Secretary Level Committee (SLC) meetings were convened, resulting in the approval of 372 units under NCSS. Of these, 240 units were from Jammu division and 132 from Kashmir division, highlighting the scheme’s balanced regional impact. The approval of substantial incentives by the Department of Industries and Commerce further underscores the success of the New Central Sector Scheme in empowering businesses. During the same fiscal year, Rs. 85.15 crore was approved under the Capital Investment Incentive (CII), Rs. 27.45 crore under Working Capital Interest Subvention (WCIS), and Rs. 7.48 crore through Capital Interest Subvention (CIS). The Goods and Services Tax Linked Incentive (GSTLI), a crucial component of NCSS, saw approvals totaling Rs. 40.80 crore, directly benefiting businesses and fueling their expansion plans. Jammu & Kashmir’s achievement of surpassing the Department of Promotion of Industry and Internal Trade (DPIIT) target of Rs. 150 crore in incentive approvals is a significant milestone. This accomplishment reflects the growing confidence of businesses in the UT’s industrial ecosystem and the positive impact of NCSS on investment inflows. While the New Central Sector Scheme has been instrumental in driving industrial growth, the Industrial Development Scheme (IDS) 2017 continues to play a crucial role. Serving 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, complementing the support provided by the New Central Sector Scheme. The combined efforts of NCSS and IDS are laying the foundation 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. This transformation will not only generate employment opportunities but also contribute significantly to J&K’s overall economic development and prosperity. Therefore, the New Central Sector Scheme has emerged as a catalyst for industrial growth in Jammu & Kashmir by attracting investments, promoting entrepreneurship and bolstering economic prosperity. With continued support from government initiatives and the active participation of businesses, the union territory of Jammu and Kashmir has got the potential to thrive as an industrial hub in the years to come.

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