Union Government lists measures to attract investments in Jammu & Kashmir

The Union Government has taken several measures to attract investments in the Union Territory of Jammu and Kashmir, so as to provide better employment opportunities to the youth. With the aim to improve the tourism infrastructure that was destroyed, an amount of Rs 2241 crores was announced under Prime Minister’s Development Package (PMDP) on November 7, 2015.

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Self-employment opportunities through establishment of Micro-enterprises

The Prime Minister’s Employment Generation Programme (PMEGP) through the Khadi and Village Industry Commission (KVIC), Khadi and Village Industry Boards (KVIB) and District Industries Centers (DICs) offices, generates self-employment opportunities through establishment of microenterprises in the non-farm sector by helping traditional artisans and unemployed youth. 

Margin money subsidy of 25 percent of the project cost in rural areas and 15 percent in urban areas was provided for general category beneficiaries, whereas for scheduled-caste/scheduled-tribe/women, the margin money subsidy is 35 percent in rural areas and 25 percent in urban areas.

“The maximum cost of projects is Rs 25 lakh in the manufacturing sector and Rs 10 lakh in the service sector,'' the government informed the Rajya Sabha in a written reply.

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Credit linked Capital Subsidy of 15 percent on institutional credit up to Rs.1 crore for identified sectors/subsectors/technologies for upgrading technology by the Ministry of Micro, Small and Medium Enterprises. Credit Guarantee Scheme (CGS) of Ministry of Micro, Small and Medium Enterprises to strengthen credit delivery system and facilitate the flow of credit to the MSE sector without the hassles of collateral and third party guarantee, providing Credit Guarantee to the Member Lending Institutions (MLIs) for loans up to Rs. 200 lakh granted to MSE without collateral and third-party guarantee.

"Interest Subvention Scheme for Incremental credit to MSMEs 2018", launched on 02.11.2018 for providing 2 percent interest subvention for all GST and UAM registered MSMEs (maximum up to Rs. 1 crore), on fresh or incremental loans. 

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“Subsidy schemes for manufacturing and services sector namely (i) Central Capital Investment Incentive (30% of the investment in plant and machinery with an upper limit of Rs. 5 crore), (ii) Central Interest Incentive (3% interest on working capital for 5 years) and (iii) Central Comprehensive Insurance Incentive (Reimbursement of 100% insurance premium for 5 years),” the reply read.

Income Tax Reimbursement of centre’s share for 5 years, (v) GST reimbursement of Central Govt. share of CGST and IGST for 5 years, (vi) Employment Incentive under which additional 3.67% of the employer’s contribution to EPF, in addition to Govt. bearing 8.33% Employee Pension Scheme (EPS) contribution of the employer in Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) and (vii) Transport incentive on finished goods movement by Railways (20% cost of the transportation), by Inland Waterways Authority (20% of the cost of transportation) & by air (33% of cost transportation of air freight) from the station/port/airport nearest to unit to the station/port/airport nearest to the destination point. 

A single unit can avail overall benefits up to Rs. 200 Crore. (viii) Scheme of Budgetary Support under Goods and Services Tax (GST) Regime w.e.f. 01.07.2017 for an eligible unit that shall remain in operation for the residual period for each of the eligible units in respect of specified goods. The overall schemes are valid up to June, 30 .2027.

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