J&K Proposes Bigger Incentives, Revival Of Sick Units

(MENAFN- Kashmir Observer) Srinagar- The Jammu & Kashmir Government has unveiled a draft amendment to its industrial policy 2021–30, proposing a slew of incentives aimed at transforming the Union Territory's industrial landscape.

The Industries and Commerce Department has placed the proposed incentives in the public domain to seek suggestions from various stakeholders.

According to the proposed amendments, sick industries under revival will receive the same incentives as new industrial units under the policy.“A special mechanism will identify and rehabilitate sick SME units (as per the Reserve Bank of India definition), and such units under revival will receive the same incentives as new industrial units in the current policy,” the draft states.

The amendments further provide that MSME units in Zone A shall be eligible for 30% financial assistance, subject to a ceiling of Rs 50 lakh, while units in Zone B shall be eligible for 50% financial assistance, subject to a ceiling of Rs 1 crore.

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Women-led MSME units (with at least 51% stakes) across all zones may be provided an additional 25% financial assistance, as an extra benefit, the policy notes.

The proposed initiative also provides for reimbursement of 100% SGST to eligible industries for five years, subject to a ceiling of 200% of Fixed Capital Investment (FCI) for micro enterprises and 150% in Zone A; 150% of FCI for small and medium enterprises in Zone B and 100% in Zone A; and up to 100% of FCI for medium and large enterprises in Zone B.

The proposed incentives provide for 100% exemption from stamp duty on land transactions in government industrial estates, including lease deeds and mortgage deeds.

The government also plans to incentivise industrial units that list on stock exchanges.

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