CENTRAL SECTOR SCHEME FOR INDUSTRIAL DEVELOPMENT OF UNION TERRITORY OF JAMMU & KASHMIR

• • New units with investment of not more than Rs.50 crore; Existing units undertaking substantial expansion with investment of not more than Rs. Fifty crore in Plant & Machinery will be eligible to avail benefit under this incentive in both Zone A and Zone B.
  • A service sector unit will be eligible for this incentive only if it makes investment of not less than Rs. One crore in new building and other durable physical assets.
    • Zone A: CII @30% of the investment made with maximum limit Rs. 5 crore.
    • Zone B: CII @50% of the investment made with maximum limit Rs. 7.5 crore.
  • An existing unit can avail this benefit for substantial expansion only once during the validity period of the scheme.

• • Interest on loan up to the principal amount of Rs. 500 crore for investment in eligible plant and machinery shall be eligible for Capital Interest subvention. (The interest on the loan amount exceeding Rs. 500 crore would not be eligible)
  • This incentive is applicable on the loans availed from a Scheduled Commercial Banks or Financial Institutions registered by Reserve Bank of India.
  • All eligible units can avail CIS at the annual rate of interest of 6% for a maximum of 7 consecutive years from any date after the date of application for registration under this scheme. However, disbursement of eligible amount under this incentive shall begin only after commencement of commercial production.

• • New units registered under the scheme irrespective of the value of investment in plant and machinery and having a GST registration will be eligible for benefit under this incentive.
  • All eligible units will be granted GSTLI equal to 100% of Gross payment of GST, i.e. GST paid through cash and input tax credit for a maximum period of 10 years from the date of commencement of commercial production/operation or till the validity of the scheme whichever is earlier.

• • All existing units in the UT of Jammu & Kashmir registered under GST prior to the date of notification of this scheme will be eligible for this incentive.
  • WCIS @ 5% on working capital loan for a maximum of 5 consecutive years from the date of grant of registration under this scheme.

Constitution:

• • Union Home Minister as Chairperson
  • Union Commerce and Industry Minister
  • Lt. Governor of UT of J&K

Powers and functions:

• • Decide upon any modification in the scheme within its overall financial outlay which have not been specifically delegated under the power and function of other Committees.
  • Approve any deletion in the negative list

• • Monitor the smooth implementation and issue detailed guidelines for execution.
  • Review and make additions to the negative list for goods and any changes to the positive list for services.

• • Monitor the overall implementation of the Scheme and put in place proper checks and balances for ensuring transparency and efficiency in grant of registration.