(MENAFN- Kashmir Observer) Srinagar- Hopes of expanding a Rs 46,600 crore industrial package in Jammu and Kashmir have stalled, leaving 200 investors in limbo. With the initial Rs 28,400 crore budget of the Central Industrial Area Scheme exhausted, only 971 investors have been accommodated so far.
Meanwhile, 200 additional investors, having completed all formalities, remain unregistered due to the lack of funds.
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The Rs 28,400 crore package, introduced in April 2021 after the abrogation of Article 370, was aimed at attracting significant investments to the Union Territory. However, the registration portal for new investors was closed on September 30, following the exhaustion of the budget. At that time, the Department of Industries had pending applications for 250 projects, but only 50 could be accommodated within the remaining funds.
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The stalled expansion has resulted in investment worth thousands of crores being put on hold, reported news agency KNO.
Investors were preparing to set up plants and machinery valued at ₹10,000 crore but have now paused their plans, citing uncertainty over future incentives. Many who had already started infrastructure work have stopped construction, fearing financial losses if the package is not extended.
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An industry official revealed that the department had requested an additional Rs 46,600 crore-bringing the total package to Rs 75,000 crore-to accommodate new proposals and strengthen existing units. However, the Centre has yet to respond, leaving both domestic and international investors anxious.
The new industrial policy had promised attractive incentives for ten years to boost economic activity in the region. While initial investments under the scheme showed promise, business leaders argue that the changing political landscape has impacted its momentum. After the formation of the new Omar Abdullah-led government, key sectors such as industries and finance shifted from the Lieutenant Governor's administration to ministerial control. However, the final decision on expanding the package rests with the Central Government.
Business leaders and stakeholders have urged both the Centre and the Jammu and Kashmir government to act swiftly. They advocate for an increase in budgetary outlays and demand incentives for existing industrial units on par with new ones.
During the fifth investor meeting at the Convention Center, participants highlighted the urgent need for extending the package to sustain investor confidence and avoid derailing ongoing projects. Industry leaders stress that an expanded package is essential for driving economic growth and creating job opportunities in the region.“For now, all eyes remain on New Delhi, as investors await a decision that could shape the future of Jammu and Kashmir's industrial sector,” says a senior JK Official here .
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