Jammu and Kashmir offers vast business opportunities
by: Vikram Gupta | Chief Executive Officer
Jammu and Kashmir offers vast business opportunities
J&K (Jammu & Kashmir) is the northern most State of India offer boundless investment opportunities to the prospective Investors, as the State has rich resources of Water, Agro, Forests, Herbal and Minerals in addition to its un-parallel natural beauty and hence tremendous potential for investment in tourism sector.
The most prominent Identified sectors includes Information Technology, tourism and hospitality, horticulture and post-harvest management, agro and food processing, agriculture and milk poultry, processing of handloom, silk and handicraft, healthcare and pharma, medicinal plant, education and skill development, waste management and recycling, infrastructure and real estate and hydro and renewable energy for investment attraction across the world.
Jammu and Kashmir shares its international border with Pakistan. The UT lies in the Greater-Himalayan ranges and is enclosed with mountains and valleys. Chenab, Jhelum and Ravi are the major rivers that flow through it. It is well-connected with an international airport in Srinagar and a domestic airport in Jammu.
The state is home to about 53 industrial estates and 32,226 small-scale industrial units with an investment of over USD 793 Mn. There are several upcoming ropeways and cable car projects to facilitate better tourist movement. A vast natural resource base has enabled J&K to develop land for cultivating major fruits. The state’s share in the overall apple production in India was 74.42 per cent in 2016-17, with the overall production of apples in the state reaching around 1.726 million MT.
The Government owns developed Industrial estates in all the districts of the State, in particular, a number of industrial estates have been developed at and around Jammu city in Jammu region and at and around Srinagar in Kashmir valley, for ready allotment of industrial plots to the promoters.
Major Industrial Areas in Jammu & Kashmir
Industrial Complex Bari Brahmana, Jammu
Industrial Estate, Gangyal, Jammu
Industrial Growth Centre, Samba, Jammu
Industrial Infrastructure Development Project (IIDP), Udhampur
Expert Promotion Industrial Park (EPIP) Kartholi, Jammu
Industrial Complex Rangreth, Srinagar
Industrial Complex Lassipora, Pulwama, Kashmir
Industrial Complex Khunmoh, Srinagar
Industrial Complex, Zainkot, Srinagar
Industrial Estate, Zakura, Srinagar
Industrial Growth Centre, Ompora, Budgam
Some of the most important industries of Jammu and Kashmir are: Silk Textile, Carpet-Making and Woolen Textile, Forest-based Industries, Agro-based Industries, Papier Mache, Cement Industry, Industrial Complexes. Silk textile is one of the most ancient industries of Jammu and Kashmir state.
J&K SIDCO (Jammu & Kashmir State Industrial Development Corporation) is the nodal agency for promotion & development of medium and large scale Industries in the state. Since its inception J&K SIDCO has acted as a prime mover in the State for promotion of Industrial ventures and thus is playing the role of "Institutional Entrepreneur".
Incentive Package by Govt. Of India
Central Capital Investment Incentive for access to credit (CCIIAC) @ 30% of the investment in plant and machinery with an upper limit of Rs.5.00 Crore.
Central Interest Incentive (CII) @ 3% on Capital credit advanced by the scheduled banks or central/state financial institutions.
Central Comprehensive Insurance Incentive (CCII) @100% of insurance premium on insurance of building & plant & machinery.
Reimbursement of the Goods & Services Tax paid by the unit limited to the Central Governments share of CGST and/or IGST retained after devolution of a part of these taxes to the State.
Incentive Package by State Govt.
Sate Capital Investment Subsidy @ 30% of cost of plant and machinery with upper limit of Rs.60.00 Lakhs to 300.00 Lakhs and Rs.30.00 Lakhs to Rs.150.00 Lakhs in manufacturing & services sector respectively.
Interest Subsidy on Working capital @ 3% to 5%.
Subsidy on Pollution Control Devices @ 60% of the cost of pollution control devices subject to a maximum of Rs.50.00 Lakhs.
Green and Environment Protection Initiatives @ 50% with upper limis of Rs. 2.00 to 6.00 Lakhs on the expenditure incurred on the equipment.
Subsidy on purchase and installation of Diesel Sets of 10 KW to 2000 KW @100% with a maximum limit of Rs. 40/45 Lakhs.
GI Certification @50%/30%/10% subject to maximum of Rs. 15/10/05 Lakhs during the 1st/2nd/3rd year respectively on expenses incurred.
Quality Control and Testing Equipment @100% with upper limit of Rs. 35 Lakhs on cost of such equipments.
Automation through computers/IT @25% of the expenditure incurred on automation.
Pre-investment Studies/ Feasibility Reports @100% subject to a limit of Rs. 2.00 Lakhs at the time of execution of the project.
Stamp Duty and Court Fee exemptions on mortgage deeds in favour of Financial Institutions required to be signed by promoter shall be exempted from payment of stamp duty.
Air Freight Subsidy for registered Micro and SSI Units for any destination within the country @ 50% subject to a maximum of Rs. 5.00 Lakhs per year per unit.
Toll Tax Exemption on import or raw material and export of finished goods, excepting goods brought on negative list.
Toll Tax exemption against procurement of the plant and machinery, building material and other equipment’s required for construction of factory for a period of five years from the date of registration.
Exemption from earnest Money/Security Deposits to the extent of 50% or Rs.5000/- whichever is less and also 50% of the cost of tender documents or Rs.100/- whichever is less.
GST Reimbursement in terms of SRO 519, 521 of 2017 and SRO 63 of 2018.
Reimbursement of Integrated Goods and Services Tax for promotion of Small/Medium/Large Scale Industries in the state in terms of SRO 431 of 2018.
State Freight Refund Scheme, 2018 in terms with Govt. Order No. 411-FD of 2018 dated 25.09.2018.