SRINAGAR — The Jammu and Kashmir administration has cleared 53 additional industrial units under the New Central Sector Scheme (NCSS), with the projects expected to attract around ₹1,626 crore in investment and generate nearly 2,902 employment opportunities across the Union Territory.
Of the newly approved units, 35 will be established in the Jammu division and 18 in the Kashmir division, according to official sources.
With the latest approvals, the total number of industrial units registered under the NCSS in Jammu and Kashmir has risen to 971 from 918 earlier.
The 918 units approved previously are expected to bring an investment of around ₹12,668 crore, including approximately ₹9,220 crore in plant and machinery, and are projected to generate nearly 48,995 employment opportunities.
The latest batch of 53 units is expected to add around ₹1,294 crore in plant and machinery investment, with the overall proposed investment associated with these projects estimated at ₹1,626 crore.
Officials said several major national-level business groups are among the newly approved units.
More units may get approval
The latest approvals follow a decision by the Central Government’s Apex Committee to utilise savings available under the ₹28,400-crore Industrial Development Scheme for Jammu and Kashmir.
The Apex Committee had permitted the use of approximately ₹5,630.74 crore in savings under the scheme for registering additional industrial units beyond the 918 already approved.
Officials said the exact incentives applicable to the newly cleared 53 units were still being calculated.
Once the incentive liability is finalised, the administration will be able to determine the amount of funding that remains available and how many more units awaiting approval can be accommodated under the scheme.
Savings from investment and GST changes
The administration had informed the Apex Committee that substantial savings had emerged from the difference between investments projected in Detailed Project Reports and actual investments made by industrial units in plant and machinery.
An estimated ₹4,551.01 crore was available from this difference, while another ₹1,079.74 crore was available from the overall approved allocation, taking the estimated available amount to around ₹5,630.75 crore.
Around ₹3,500 crore of the expected savings reportedly arose following changes in GST rates.
The Apex Committee has also permitted fungibility and reappropriation of funds among different incentive components, including Capital Investment Incentive, Capital Interest Subvention, GST-linked Incentive and Working Capital Interest Subvention, based on actual and projected requirements.
The adjustments, however, are to be made without increasing or altering the overall approved allocation under the scheme.
J&K seeks larger incentive allocation
The New Central Sector Scheme was launched on April 1, 2021, with a total outlay of ₹28,400 crore and is scheduled to continue until 2037.
In view of the response from investors and the number of applications received for industrial registration, the Jammu and Kashmir administration has sought an increase in the incentive allocation to ₹75,000 crore.
The proposed enhancement is aimed at accommodating additional industrial projects and supporting further investment and employment generation in the Union Territory.
Industrial units registered under the scheme will remain eligible for incentives until 2037, with projects expected to come up across different parts of Jammu and Kashmir.
The Industrial Development Scheme was introduced with the broader objective of promoting industrial growth in Jammu and Kashmir, attracting private investment and generating employment.
The original policy had envisaged the creation of around three lakh jobs, while the administration has subsequently projected higher employment generation in view of the response from investors. (KNC)
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