The Jammu and Kashmir Industrial Development Policy 2021-30, introduced by the government, aims to transform Jammu and Kashmir into an industrially developed region. This policy was launched to promote sustainable and balanced industrial development in the Union Territory (UT) following its reorganization in 2019. The policy focuses on several key areas to attract investment, generate employment, and ensure the socio-economic development of the region.
Jammu & Kashmir Industrial Policy 2021 shall be valid for a period of 10 years from the 01.04.2021.The Government of Jammu & Kashmir can extend the time period of the policy.
To transform Jammu & Kashmir into an industrial powerhouse by fostering convergence and collaboration, guided by the principle of "Tradition, Growth, and Transformation". This aims at creating a supportive ecosystem for Ease of Doing Business to unlock the region's full potential.
To stimulate industrial expansion within a stable and competitive environment, enhancing both traditional sectors (Agriculture, Food processing, Tourism, Handicrafts, Health, Education) and modern industries (Pharmaceuticals, IT/ITes, Skill development), thereby ensuring economic growth and human resource development in Jammu & Kashmir.
All eligible manufacturing units except as manufacture units mentioned in Annexure – I of the policy. The incentive for service units is available to service units as mentioned in List Annexure – II to the policy.
| Subsidy | |
| New units | 100% subsidy on the purchase and installation of a single DG set |
| Existing units undertaking substantial expansion | Incremental subsidy based on additional power load |
| Existing units undertaking substantial expansion without availing DG set subsidy earlier | Subsidy on aggregate power load |
| Verification and Payment | Subsidy payment through bank or financing agency |
| Existing units not undertaking substantial expansion after availing incentive earlier | Not eligible for subsidy under the Policy |
| Incentive | Eligibility |
|---|---|
| 100% exemption of Stamp duty on land transactions in Government Industrial Estates | New units - Existing units undertaking substantial expansion |
| Exemption of payment of court fee for registration of documents relating to land transactions | New units - Existing units undertaking substantial expansion |
| Eligibility | Subsidy Details |
|---|---|
| New units, existing units, and units undergoing substantial expansion | 30% subsidy on total cost for obtaining Quality
Certification Maximum subsidy capped at Rs. 2 lakhs Incentive can be availed only once |
| substantial expansion |
Maximum subsidy capped at Rs. 2 lakhs Incentive can be availed only once |
| Exclusion | Existing units not substantially expanding previously and those who have availed this incentive are ineligible for further subsidy |
| Eligibility | Subsidy |
|---|---|
| New units | 25% of expenditure, up to Rs. 2 lakhs |
| Existing units | 25% of expenditure, up to Rs. 2 lakhs |
| Existing units undergoing substantial expansion | 25% of expenditure, up to Rs. 2 lakhs |
| Eligibility | Subsidy |
|---|---|
| New units | 60% of the cost of Pollution Control Devices, up to Rs. 50 lakhs, if not claimed under CII or similar scheme |
| Existing units | Same as above |
| Existing units undergoing substantial expansion | Same as above |
| Previously incentivized units not undertaking substantial expansion | Ineligible for further subsidy |
| Eligibility | Subsidy Offered |
|---|---|
| New units, existing units, and units undergoing substantial expansion | 50% subsidy on expenditure for installation of new rainwater harvesting, wastewater recycling, zero discharge process, or solid waste management equipment. |
| Existing units not undertaking substantial expansion and previously availed this incentive | Ineligible for further subsidy. |
| Turnover Incentive Rate | Maximum Incentive per Annum | Duration | Annual Overall Capping | |
|---|---|---|---|---|
| Micro Units | 3% | Rs. 10 lakhs | 5 years | Rs. 50.00 crore |
| SME and Large Units | 2% | Rs. 50 lakhs | 5 years | Rs. 50.00 crore |
| Eligibility | Incentive |
|---|---|
| Existing units registered under GST in the UT of Jammu & Kashmir on or before March 31, 2021. | 100% Net SGST reimbursement for 10 years starting from April 1, 2021. |
| Incentive Amount | Meeting Frequency | Submission Period | Disposal Period |
|---|---|---|---|
| Up to Rs. 5.00 lakhs | Not specified | Not specified | Within 15 days from sanction date |
| Above Rs. 5.00 lakhs and up to Rs. 50.00 lakhs | Once a month for each district in the division | Within 30 days | Within one month from submission |
| Above Rs. 50.00 lakhs | Once a month for each district in the division | Within 30 days | Within one month from submission |
| Initiative | Description |
|---|---|
| Organizing Industrial Trade Fairs | Regular organization of industrial trade fairs at national and international levels with promotion of Jammu & Kashmir's participation. |
| Marketing Events for MSMEs | Conducting marketing events such as buyer-seller meets, trade fairs, exhibitions, etc., specifically aimed at promoting MSMEs' products and services. |
| Procurement Policy for MSEs | MSEs goods and services to be procured in accordance with the Government of Jammu and Kashmir's procurement policy, subject to amendments as issued. |
| Local Filter on GeM Portal | Provision of a local filter on the GeM (Government e-Marketplace) portal to prioritize and boost local manufacturers' visibility and procurement. |
| Fund Name | Entrepreneur and Skill Development Fund |
|---|---|
| Source of Funding | 10% of the premium charged by Industrial Corporations as per Land Policy for land allotment to entrepreneurs |
| Purpose | Incorporating entrepreneurial skills among local youths for sustained industrial growth in the UT |
| Training Providers | JK Entrepreneur Institute (JK EDI) and other premier institutes of the country |
| Training Program | Industrial entrepreneurship training and skill development |
The Scheme will cover the Union Territory of Jammu & Kashmir. Commencement and Duration of the Scheme: It will be effective from 01.04.2021 and will remain in force up to and inclusive of 31.03.2037.
| New units in manufacturing sector | 30% of investment in plant and machinery, or construction of building and installation of other durable physical assets, with a maximum limit of Rs. 5.00 crore. |
| New units in services sector | 30% of investment in construction of building and installation of other durable physical assets, with a maximum limit of Rs. 5.00 crore. |
| Units in Zone B category blocks | 50% of investment in plant and machinery (manufacturing) or construction of building and installation of other durable physical assets (services sector), with a maximum limit of Rs. 7.50 crore. |
| Duration | Maximum of 7 consecutive years from any date after the date of application for registration under this scheme. Disbursement starts after the commencement of commercial production. |
|---|---|
| Minimum Interest Liability | If the annual interest rate falls below 8%, the eligible unit must pay a minimum interest of 2% annually. |
| Capital Investment Incentive | Investment made in plant and machinery (for manufacturing sector) or construction of building and other durable physical assets (for services sector). |
| Goods & Services Tax Linked Incentive (GSTLI) | 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. However, GST paid on exported goods or services will not be counted towards eligible incentive amount under this component. |
| Limit on Incentive | The amount of incentive paid in a financial year will not exceed one-tenth of the total amount of eligible incentive under this component, subject to full payment of GST as per GST return filed for the claim period. |
| Uniform Quantum of Incentive | The quantum of incentive will be the same irrespective of whether the unit is located in Zone A or Zone B in the UT of Jammu & Kashmir. |
| Carry Forward of Unclaimed Incentives | Any unclaimed incentives can be carried forward to subsequent financial years, provided it does not exceed the eligible period of 10 years or the validity of the scheme, whichever is earlier. However, this will not be carried forward beyond the eligible period of 10 years or beyond the validity of the scheme, whichever is earlier. |
| Duration of Benefit | Existing eligible units availing benefits under this component will be eligible for a five-year period, even when they are undertaking substantial expansion. |
| Minimum Interest Obligation | If the annual rate of interest charged by a bank falls below 6%, a minimum amount of 1% per annum of interest must still be paid by the eligible units. |
| Maximum Benefit | The maximum benefit under this component for both manufacturing and service sector units is Rs. 1 crore over 5 years. |