New Delhi, April 24
In a major decision to revive the militancy-hit economy of Jammu and Kashmir, the Union Cabinet tonight approved a special package of incentives for new industrial units and substantial expansion of the existing ones.
Such units will be totally exempted from excise duty for 10 years, while the existing 100 per cent income tax exemption for the first five years and 30 per cent exemption for the next five years will continue, Parliamentary Affairs Minister Pramod Mahajan told reporters after the Cabinet meeting.
The incentives will be available for 10 years from the date of the commencement of production.
The incentives will, however, not be available to units involved in the manufacture of products relating to tobacco, liquor or branded soft drinks.
The government has also decided to set up a Jammu and Kashmir Development Finance Corporation (JKDFC) with a one-time provision of Rs 50 crore.
An initial contribution of Rs 1 crore will be made for setting up a design-cum-resource centre for footwear and leather industry. The present financing pattern of integrated infrastructure development centres is presently in the 2:1between the Centre and the Small Industries Development Bank of India (SIDBI). It will now be 4:1.
The package also includes capital investment subsidy at the rate of 15 per cent of the investment in plant and machinery, subject to a ceiling of Rs 30 lakh.
Central interest subsidy will be given at the rate of 3 per cent of working capital.
UNI
