"The Union Cabinet on Thursday approved an incentive scheme worth ₹28,400 crore with the aim to bring industrial development in the Union Territory of Jammu and Kashmir."
The scheme is expected to create jobs and attract investment in the region, the central government said in a statement. Its outlay is until 2037 and 1,123.84 crore have already been disbursed under various special packages.
Government of India has formulated New Industrial Development Scheme for Jammu and Kashmir (J-K IDS, 2021) as Central Sector Scheme for the development of Industries in the UT of Jammu & Kashmir," the government said.
"The present scheme is being implemented with the vision that industry and service-led 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," it added.
According to the cabinet on economic affairs, the scheme has been made attractive for both smaller and larger units. Smaller units with an investment in plant and machinery up to 50 crore will get a capital incentive up to 7.5 crore and get capital interest subvention at the rate of 6% for maximum seven years.
"Scheme has been simplified on the lines of ease of doing business by bringing one major incentive - GST Linked Incentive - that will ensure less compliance burden without compromising on transparency," the committee said