INDIAN STATE : JAMMU AND KASHMIR

Investment Incentives

• Land Allotment: Allotment of land at concessional rates in industrial areas on lease basis for 90 years
  
  
• 30% capital investment subsidy on fixed capital investment, subject to maximum of US$ 0.0650550 million (Rs 30 lakhs)
  
  
• Brand Promotion: The policy has introduced an incentive for assisting industries of the state to acquire and promote their own brands. This incentive will be extended for the first three years, 50% of expenses subject to a limit of US$ 43,360.73 in the first year, 30% of expenses subject to a limit of US$ 32,544.38 in the second year and 10% of the expenses subject to a limit of US$ 21,708.40 in the third year.
  
  
• Interest subsidy: In addition to the 3% interest subsidy available to new industrial units under the Government of India package, 3% subsidy shall be payable on the working capital facilities available from the commercial banks to all existing units for the remaining period of their eligibility, subject to the conditions prescribed, under the Government Order No. 202- Ind of 1998 dated: 27-5-1998 and to the units not getting interest subsidy under the Central package.
  
  
• Pollution Control Equipment: For individual units, installing their own pollution control devices, subsidy will be provided on such equipment to the extent of 30% subject to a limit of US$ 43,360.73
  
  
• D.G.Set subsidy: 100% subsidy on purchase/installation of D.G Sets from 10 KWs to 1000 KWs capacity with a maximum limit of US$ 54,201.03
  
  
• Project Report: 100% subsidy for preparation of feasibility report subject to maximum of US$4,339.06
  
  
• Toll tax: Exemption on toll tax to be continued up to 31-03-2015, subject to the negative lists. No toll tax on empty containers brought into the state for stuffing of industrial products for export out of the state.
  
  
• General Sales Tax (GST Exemption): GST exemption to be continued till VAT is imposed or till 31-03-2015 for existing and new units, whichever is earlier, subject to the negative lists. The exemption of GST on the raw material procured by the local industrial units shall be available only to SSI units, subject to negative list.
  
  
• Central State Tax Exemption: CST exemption to SSI units to be continued up to 31-03-2015. Extended to Medium & Large Industrial units, subject to a negative list.
  
  
• Airfreight subsidy: Air freight subsidy shall be continued up to 31-03- 2015 at the rate of 50% subject to the ceiling of US$10852.54 per year per unit. Also made applicable to incoming raw material.
  
  
• Research and Development: 50% subsidy on the expenditure incurred on R&D subject to a ceiling of US$ 10852.54.
  
  
• Human Resource Development: 50% of the cost of training to be borne by government subject to a ceiling of US$ 108.378 (Rs. 5000) per trainee and US$ 2170.02 per annum for one unit.
  
  
• Exemption of Court Fee: Registered Industrial units shall be exempted for payment of court fee for registration of documents relating to lease of lands.
  
  
• Transport Subsidy: transport subsidy at the rate of ninety percent available as per the scheme of government of India.
  
  
• Thirty percent subsidy on pollution control equipment: It is proposed that 30% subsidy be extended for purchase of pollution control equipment subject to a ceiling of US$ 43,360.73 per unit.

Important Industrial Areas

• Industrial Complex, Bari Brahmana, Jammu
  
• Industrial Estate, Gangyal, Jammu
  
• Industrial growth center, Samba, Jammu
  
• Integrated Infrastructure Development Project, Udhampur
  
• Export promotion Industrial Park, Kartholi, Jammu
  
• Industrial Area, Kathua
  
• Electronic Complex, Rangreth, Srinagar
  
• Industrial Complex, Lassipora, Pulwama, Kashmir.
  
• Industrial complex, Khonmoh, Srinagar
  
• Industrial Estate, Zainakote, Srinagar
  
• Industrial Estate, zakura, Srinagar
  
• Industrial Growth Centre, Ompora, Budgam

Institutional Framework For Industrial Promotion

Jammu & Kashmir State Industrial Development Corporation (JKSIDCO)

JKSIDCO acts as a catalyst to promote industrial development in the state, The Corporation has established seven industrial estates to provide infrastructure facilities at identified locations suitable for industrial development throughout the state. Within each estate developed land is available at subsldised rate Industrial growth centres and export promotion Industrial parks are being set up in both Jammu region and Kashmir valley separately, by way of acquiring land, constructing internal roads, affluent disposal facilities, provision for water and power in the industrial estate. SIDCO has also promoted projects In joint and assisted sectors, The Corporation offers a variety of financial assistance for setting up new Units and for expansion / diversification /modernization of existing projects.

Directorate of Industries and Commerce

Directorate of Industries & Commerce is charged with the responsibilities of facilitating industnal growth in the state by providing for funding Infrastructure In the form of industrial estates, incentives for capital Investment and other subsidies.

J&K State Financial Corporation (JKSFC)

JKSFC alms at boosting economic development in the state by providing adequate financial assistance for setting up units In the medium, small and tiny scale industrial sectors JKSFC provides financial assistance for acquiring fixed assets like land, building and machinery, technical know-how fees, pre-operative expenses etc to set up industrial projects in J&K.In case of existing Units, JKSFC offers term finance for their expansion, diversification, or renovation, modernization and procurement of quality control equipment and energy saving devices.

J&K Tourism Development Corporation

J&K Tourism Development Corporation is the commercial arm of the tourism department and manages Hotels. Dak Bungalows, Cafeterias, for facilitating tourism in the State.

Jammu & Kashmir Bank Ltd

J&K Bank ltd is one of the largest private sector banks of the country. It is owned by the Government of Jammu & Kashmir with equity holding exceeding 80%. Bank's network is spread across the Country

Power Development Department

The Power Development Department set up by the state government is a nodal agency to promote development of Power resources in the state and to promote private investment in the Power sector.

J&K Small Industries Development Corporation

J&K Small IndustrIes Development Corporation (SICOP) IS a nodal agency to promote rapid industrialization and development In the SSI sector The Corporation provides procurement and distribution of Imported and indigenous raw material to industries within the State.

It also develops industrial estates at various potential industrial centres In J&K SICOP has developed industrial estates at Gangyal. Birpur and Kathua in Jammu & Zaikakote. Bijbehare & Zakura In Srinagar The Government of India Jointly with state government has entrusted the development of integrated Infrastructure development centre at Udhampur to SICOP.SICOP provides testing facilities to SSI end products. It also provides financial assistance for marketing of industrial products to SSI units set up In the State. SICOP provides marketing support to SSI units of J&K.

J&K Industrial and Technical Consultancy Organisation

J&K Industrial and Technical Consultancy Organization Ltd renders consultancy services to new and existing enterprises in the state. The support of financial Institutions both at the central level as well as in the state enables the organization to undertake wide spectrum of marketing, technical and financial consultancy services.

Forest Department

The state possesses a forest area of 20,182 Sq Kms J&K State Forest Corporation Ltd is engaged in the supply of wood, quality coniferous timber, both in and outside the state It works towards protection of environment, development of commercial plantation and scientific management of forests.

J&K Handicrafts Corporation Ltd

J&K Handicraft Corporation is running a number of carpet weaving training centres It IS engaged in the procurement and sale of handicrafts produced in the state The Corporation also provides a market to the craftsmen by buying their produce directly at reasonable price.

Sericulture Development Department

The state is a natural habitat of Sericulture 27, 000 rearers are engaged in the state with sericulture II is an important rural based household industry having tremendous employment potential. Sericulture Development Department is a nodal agency for incentives pertaining to silk industry.

Mineral Development Department

J&K Mineral Limited (JKML) promotes the Identification and exploitation of mineral resources and the establishment of mineral based industries in the state.

J&K State Handloom Development Corporation

The State handloom department is actively engaged in the implementation of a number of welfare schemes and provision of marketing and working capital support to the handloom sector. The Corporation is also establishing raw material banks for assistance to weavers. The Corporation undertakes exhibitions in different cities of the country to promote the products manufactured by the handloom units for their marketing outside the state. The Corporation operates various schemes for dispersal and extension of handloom industry to ensure balanced regional development of the state.

J&K Horticulture Produce Marketing and Processing Corporation

J&K Horticulture Produce Marketing and Processing Corporation (HPMC) provides marketing cover to the fruit industry in the state It provides facilities for collection, grading, packing processing and marketing and also in the introduction of latest technology and scientific know-how.

J&K State Agro Industries Development Corporation

J&K State Agro Industries Development Corporation is a nodal agency in promoting the area under cultivation for fruits and to strengthen agriculture based industry in the state. It is engaged in marketing of a number of agro based products various manufactured in the state and also provides facilities like serving of farm machinery and transportation of equipment