Union Budget to lure investors to J&K, hints lieutenant governor

NEW DELHI: J&K will have a “very attractive land policy, receive full reimbursement of UTGST, get exemption from stamp duty and have a capital investment subsidy” in its Industrial Promotion Policy 2020, lieutenant-governor GC Murmu has said.

“We are in the final stages of designing an ambitious Industrial Promotion Policy 2020. This is being done in consultation with the central government and will be published in a few weeks. I do not want to pre-empt the Union Budget, but am hopeful that there will be more attractive incentives added to investment in J&K. We hope all these will be a game-changer,” Murmu said at a pre-summit investors’ meet in New Delhi on Monday. The first global investors’ summit in the Union territory is likely to be held in April.

Murmu said internet restrictions were ‘limited’ to counter disruptive activities but facilitated for business activities. “We have been facing terrorism for many years but because of concerted action now, the menace has been minimised,” he said. “Normalcy has been restored for the people. The situation is only abnormal for militants now,” Murmu claimed. J&K chief secretary BVR Subrahmanyam said steps have been taken for restoring internet. “The home secretary is working on it. There will be something in the pipeline soon,” he said.


Jammu and Kashmir remained isolated with negligible industrial investment, while Himachal and Uttarakhand used industrial incentives for hill states to develop large industrial complexes, the L-G said. “The manufacturing sector in J&K is miniscule, compared to other states. The largest factory in J&K, Chenab Textiles, was set up over 50 years ago. None set up afterwards has come even close in employment or turnover.”

Referring to ‘Lakhanpur Toll’, the L-G said “even after the introduction of GST, J&K had an entry tax which made all goods in the state and consequently all other elements in any production value chain costlier than the rest of the country. Cement, steel, construction material were all significantly costlier than elsewhere. This was a major barrier to trade and investment, apart from the people of J&K bearing the extra cost of the toll. The toll has now been abolished.”

The L-G said abrogation of Article 370 has ensured that there is no issue related to permanent residency in J&K. “Children of employees in industry from outside will have access to educational facilities and professional education. Their spouses will have equal opportunity to explore job avenues.” Murmu said the UT administration has identified 14 sectors for investment.