Friday, June 21, 2002, Chandigarh, India

National Capital Region--Delhi


M A I N   N E W S

10-yr excise duty exemption for new J-K units
Tribune News Service

  • Subsidy for expansion of existing units Leather, footwear industry get Rs 1-cr grant
  • Finance corporation to be set up
  • Ministry of Textiles to provide aid

New Delhi, June 20
In what is being seen as a pre-election sop, the Centre has notified a comprehensive package of incentives for Jammu and Kashmir as part of a new industrial policy for the state.

The notification dated June 14, issued by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, states that “keeping in view the fact that Jammu and Kashmir lags behind in industrial development, a need has been felt for structured interventionist strategies to accelerate industrial development of the state and boost investor confidence. The new initiatives would provide the required incentives and an enabling environment for industrial development, improve availability of capital and increase market access to provide a fillip to the private investment in the state”.

The package provides major fiscal incentives to new industrial units and substantial expansion of existing units whereby new industrial units and existing industrial units under expansion set up in growth centres, industrial infrastructure development centres and other locations like industrial estates, parks, export-processing zones (EPZs), commercial estates, etc., are entitled to 100 per cent excise duty exemption for a period of 10 years from the date of commencement of commercial production.

All new industries in the notified locations would be eligible for capital investment subsidy at the rate of 15 per cent of their investment in plant and machinery, subject to a ceiling of Rs 30 lakh.

The existing units will be entitled to the subsidy on substantial expansion, as defined. An interest subsidy of 3 per cent on the working capital loan would be provided to all new industrial units in notified locations for 10 years after commencement of commercial production.

The benefit would also be extended to existing units in notified locations on expansion, as defined, and to notified thrust industries

The insurance premium to the extent of 100 per cent on capital investment for a period of 10 years would be extended by the Central Government to all new units and to the existing units on substantial expansion.

Further, the present income tax exemption would continue as per the existing dispensation applicable to Jammu and Kashmir. The state government may consider extending sales tax exemption to the units which avail themselves of concessions under the policy.

The financing pattern for development of integrated industrial infrastructure will change from 2:3 between the Centre and small industries Development Bank of India (SIDBI) to 4:1 and the Centre’s funds would be in the nature of a grant so as to provide the required infrastructural support.

Other incentives include assistance for design-cum-resource centre for footwear and leather industry, Leather goods and items of fur.

The Centre would make an initial contribution of Rs. 1 crore as grant for setting up a design/resource centre and national leather development programme would provide assistance for machinery, training and salaries of professionals.

Under the National Leather Development Programme exclusive assistance would be provided to market-finished leather products of the artisans of the state in the form of buyers-seller meets and exhibitions.

Ministry of Textiles will extend its package of assistance as applicable to the north eastern region, to Jammu and Kashmir on the same terms and conditions.

According to the notification, Jammu and Kashmir development finance corporation (JKDFC) will be set up by the Central Government with a one-time provision of Rs 50 crore on the lines of North East Development Financial Corporation. According to the notification, the ineligible industries under the policy are: cigarettes/cigars of tobacco, manufactured tobacco and substitutes, distillation/brewing of alcoholic drinks and manufacture of branded soft drinks and its concentrates i.e. these industries are excluded for the purpose of concessions under the policy. Back


Protect identity of Kashmiris, says Sahgal

New Delhi, June 20
If Netaji Subhash Chandra Bose had been around to lead the nation after independence, things would have been different and the country’s situation would have been much better, according to Capt Lakshmi Sahgal, the Left Parties’ nominee for the presidential elections.

The Nehruvian model of development, based on the mixed principles of capitalism and socialism, has not delivered to a large extent in the country, the INA veteran observed in an interview to UNI here. Captain Sahgal is scheduled to file her nomination papers tomorrow.

During the hour-long interview, she rebutted Dr Kalam’s assertion that the possession of nuclear arsenals by both India and Pakistan had acted as a deterrent to a full-fledged conflict between them.

On India-Pakistan relations, she lamented that before the Agra Summit last year, the government had not prepared itself well. UNI

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