I-T sop, SDFC to rev up industry

NEW DELHI: Government has notified a comprehensive package of fiscal incentives for Jammu and Kashmir under its new industrial policy which includes income-tax exemption and setting up of a State Development Finance Corporation with a one-time provision of Rs 50 crore.
As per a notification issued by department of industrial policy and promotion on June 14, the package provides major fiscal incentives to new industrial units and substantial expansion of existing units for 16 industries identified as thrust areas under the policy.
These sectors include food processing, computer hardware and software, leather, wool, silk, floriculture, eco-tourism, minerals and handicrafts. However, sectors such as cigarettes, alcoholic drinks and manufacture of branded soft drinks and its concentrates have been excluded from concessions under this policy.
Fiscal incentives include 100% excise duty exemption for a period of ten years from the date of commencement of commercial production for units located in areas like industrial estates, parks, export processing zones and commercial estates, an official release said here.
Capital investment subsidy at the rate of 15% of the investment in plant and machinery, subject to a ceiling of Rs 30 lakh will also be extended to all new industries in the notified location, it said adding that existing units will be entitled to this subsidy on substantial expansion.
An interest subsidy of 3 on the working capital loans would also be provided to all new industrial units in notified locations for a period of ten years after commencement of commercial production, it added.
The interest subsidy benefit would also be extended to existing units in notified locations on expansion as well as to notified thrust industries, it said.
Insurance premium to the extent of 100% on capital investment for a period of 10 years would be extended by the Central government to all new units and to existing units on substantial expansion.
The policy stipulates that present income tax exemption would continue as per the existing dispensation applicable to Jammu and Kashmir. The state government can also consider extending sales tax exemption tounits which avail of concessions under the policy.
A Jammu and Kashmir Development Finance Corporation will be set up by the Centre with a one time provision of Rs 50 crore on the lines of North East Development Financial Corporation.
The corporation will provide term loan, working capital and other infrastructural support in the state. Further, corporation would be designated as Nodal agency for routing subsidies/incentives under various schemes notified under the policy.