New J&K Industrial Policy adopted from Apr 1, 2021
‘Policy aimed at creating conducive industry ecosystem; Attracts investment in focus sectors’
Subsidy on DG sets, automation, pollution control devices
Turnover, SGST, J&K package, GoI incentives
Exemption of stamp duty
Environment protection initiative
Entrepreneur and skill dev fund
Srinagar: In a move that is going to encourage industrial development in Jammu and Kashmir, the government late Monday ordered adoption of J&K Industrial Policy 2021-30 and its procedural guidelines–all of which are in effect from April 1, 2021.
The guidelines delineate the procedure for registration of business units for government incentives, how various incentives will be granted, reimbursement of SGST, change in business’s line of activity among other pointers.
According to the official government order with reference to the Administrative Council decision taken on April 9, “all Industrial units coming into commercial production from April 1, 2021 as well as the existing units undertaking substantial expansion, shall be entitled for incentives under the new policy.”
The existing units eligible for incentives under the erstwhile Industrial Policy 2016 shall be allowed to avail the same under the old policy till March 31, 2026, the order says.
The policy brings a package of incentives “aiming to create an enabling work environment for industrial development, to attract substantial investment across focus sectors, create jobs for the youth, maximize growth opportunities by optimum utilization of the available resources.”
“The envisaged mission is to drive industrial growth in an environment of stability wherein dynamic competition is allowed to help in the betterment of traditional core sectors such as Agriculture and allied sectors, Food processing, Tourism, Handicrafts and Handloom, Health, Education etc. as well as new age technology driven sectors like pharma, IT, skill development, leading to economic vibrancy and human resource development dividends for the high potential J&K,” the mission statement of the policy reads.
Under the new policy, there shall be 100 percent subsidy on purchase/installation of Diesel Genset, 60 percent subsidy on purchase/installation of pollution control devises, 30 percent subsidy on obtaining quality certificates, 30 percent subsidy on automation and 50 percent subsidy on green environment protection initiative.
Besides, there shall be turnover based incentives and SGST reimbursement, for which separate orders shall be issued by the Government to avail the same.
The DIC shall approve the incentive cases up to Rs 5 lakhs in the District Level Committee and the incentive cases from Rs 5 lakh to Rs 50 lakh shall be approved by Division Level Committee while the incentive cases exceeding Rs 50 lakh shall be approved by UT Level Committee.
Within seven days from approval of the concerned committee, the General Manager DIC shall issue sanction order while the incentive shall be disbursed within a period of seven days from the date of receipt of funds.
Any entrepreneur desirous of claiming incentives under the new Industrial Policy shall have to get registered with the Department of Industries & Commerce and in order to proceed further, an ID has to be created on the Single Window Portal www.investjk.in which requires a PAN card, valid email ID and working phone number or validation of OTP.
For provisional registration of new units, the applicant shall apply online along with DPR of the proposed enterprise, land papers, partnership deed and GSTIN registration.
In respect of existing units, the Permanent registration/EM-II/Acknowledgement of Date of Production (Operation with valid GST Registration shall be sufficient for being eligible for incentives under the policy.
As per the procedural guidelines for availing of incentives under this scheme, 60 percent subsidy shall be available on purchase and installation of pollution control devices, subject to an upper ceiling of Rs 50 lakh per unit. The units undertaking substantial expansion shall be eligible only for the balance amount out of maximum ceiling of Rs 50 lakh, if some amount of subsidy has already been availed by the unit in the earlier policies,
After the pollution control devices/equipment are installed in the unit premises, the unit holder shall submit the application for availing the incentives to the General Manager concerned, who shall within seven days forward the list of these devices to the J&K PCB for certifying the installation and satisfactory commissioning of the installed equipment, if not issued earlier.
After certification of PCB, the case shall be placed before the District Level Committee or Division Level Committee and after the approval, the concerned General Manager shall issue sanction order within seven days and disburse the incentives with a period of seven days from the date of receipt of funds.
There is 100 percent subsidy on purchase and installation of DG set from 10 KW to 2000 KW capacity but the amount of this subsidy should not exceed Rs 40 lakh for Zone –A and Rs 45 lakh for Zone-B. An amount of 50 percent of the subsidy on DG set shall be paid on verification of installation of the DG set and the remainder shall be paid after six months of installation.
For availing subsidy on DG set , the unit holder shall apply to the General Manager along with application, bills, CA certificate, satisfactory commissioning certificate and fitness certificate from PDD, agreement and Indemnity Bond etc. After the case is approved by the concerned committee, the GM shall sanction the claim up to Rs 5 lakh. In case of claim exceeding Rs 5 lakh, the GM shall recommend the case to Director Industries & Commerce for approval by the Divisional Committee.
The industrial units procuring quality certification like ISO, ISI, BIS, FPO, BEE, AGMARK, ECOMARK etc shall be given a subsidy of 30 percent of the total cost incurred for obtaining the said certificate, subject to a maximum of Rs 2 lakhs as certified by the Chartered Accountant.
The General Manager shall place the case before the District Level Committee which shall approve the same. Within a period of seven days after the committee approval, the GM shall issue sanction order and convey the liability of funds to the Directorate on the same day. The incentive shall be disbursed within a period of seven days from the date of receipt of funds.
Similarly, for subsidy on automation, the promoters shall submit a proposal to the concerned General Manager DIC highlighting the benefits attributed to the same in respect of their unit. A subsidy of 30 percent of the total cost incurred for automation shall be available to the unit subject to a maximum of Rs 2 lakh.
On production of bills, certificate from CA regarding the total cost incurred for automation of the unit, mode of payment certificate from bank, agreement and Indemnity Bond on disbursement etc, the General Manager shall place the case before the District Level Committee for approval of sanction of the subsidy. Within a period of seven days of the committee approval, the GM shall issue sanction order and convey the liability of funds to the Directorate on the same day while the incentive shall be disbursed within a period of seven days from the day of receipt of funds.
Similar procedure shall be followed in case of subsidy on green environment protection initiative, which is 50 percent of the total cost incurred in installation of these equipment.