Syllabus section: Economy
Why in News?
Jammu and Kashmir lieutenant governor ManojSinha announced a Rs 28,400-crore industrialdevelopment scheme on Thursday that he said would usher in socio-economic development of the Union Territory.
• To generate employment beyond government jobs in both manufacturing and service sectors which directly leads to the socioeconomic development of the region.
• To boost domestic manufacturing in the region and help J&K in becoming AatmaNirbhar (self-reliant.
Features of the scheme:
• The scheme will encourage new investment, substantial expansion and also nurture the existing industries in the Union territory.
• The scheme will optimise utilisation of the local strengths of Jammu and Kashmir.
• The present scheme is being implemented with the vision that industry and service-led the development of J&K needs to be given a fresh thrust with emphasis on job creation, skill development and sustainable development by attracting new investment and nurturing the existing ones.
The following incentives would be available under 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.
• 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.
Source: Economic Times