STATE
POLICIES

Jammu & Kashmir

INCENTIVES FOR DEVELOPMENT LARGE/MEDIUM/SMALL SCALE AND TINY SECTOR INDUSTRIES

Information source: J&K State Industries Department

For the development of industries in Jammu & Kashmir State in the State Govt. and provided number of incentives for the development of large/medium/small and tiny industries in the industrially backward area. Jammu & Kashmir State Govt. has recently issued an order which indicate incentives provided by the State Authorities. The incentives are as under:-

Allotment of Govt. land in industrial estates/outside industrial states and benefits in othercases shall be regulated as follows :-

  1. Lease period shall be 90 years, with a provision in the lease agreement for revision of rent after every 5 years. The revision of rent shall follow norms as may be fixed by the Govt. subject to supper limits of 2%.
  2. Premium on land and rent would be as per Govt. notification to be issued separately for this purpose.

Feasibility Reports:

The Project Reports prepared by a reputed agency and after accepted once by the competent authority would be eligible for subsidy on he cost of preparation of project report. The scheme would be equally applicable for project reports, prepared by ITCO, SICO, SISI, and such of the Govt. agencies. The subsidy would be available after the units goes into commercial production.

Power Tariff/Diesel Generation Sets:

  1. Subsidy to the allowed on purchases of New Diesel Generating Sets of 1 MW only. This subsidy will be 100% and would be available to the units after it has been verified that the Diesel sets have been actually installed. The subsidy would be available only to Diesel Generating Sets purchased from the reputed companies.

  2. Govt. will allow setting up of Captive Thermal or Hydel Generating Sets by individual and groups of Industries

  3. The conditions for availability of subsidy on Diesel Generating Sets are hereby given as follows:-

    1. For entitlement of this subsidy the loan shall have to be raised from Financial Institution meaning thereby that the entrepreneur purchasing Generating Sets on their own will not be entitled to the subsidy.
    2. The amount of subsidy shall not be paid directly to the entrepreneurs but shall be credited tothe Financial Institutes towards adjustment of the loans sanctioned in favour of the entrepreneurs for the purchase of Generators.
    3. The Generating Sets shall not be shifted from the State to another until a period of ten years have elapsed from the date of its installation. In case any such transfer is requested by the entrepreneur on some valid ground before the expiry of the stipulated period of ten years from the date of its installation, theunit holder will have to refund the total capital subsidy granted to him together with interest there on at Bank rates from time to time.

Price Preference:

  1. Upto 12 1/2% for all registered SSI units shall continue till further notification.
  2. The following procedures are prescribed for strict follow up by the Govt. Departments in other Organisations.

    1. All purchase committees at various level in different Govt. Departments as well as public sector undertakings shall invariably have a representative of the Deptt. of Industries& Commerce not below the rank of General Manager.
    2. If the quality of the product from the local SSI unit is not doubtful or if it carries relevant quality mark, for example ISI PPC etc., and if the rates quotation is within 12 1/2% then it would be mandatory on the part of the purchase committee to place the orders on the said SSI unit its representative if it is SIDCO, at the rates quoted by SSI units.
    3. If the rates quoted by SSI unit is not within 12 1/2% of the lowest offer received, it would still be obligatory for the purchase committee to offer on first priority to the small scale sector. Only if the SSI unit is not able to meet the demand, to the extent the demand is not met, the orders can be placed on to the parties as per procedure.
    4. No tender from local SSI unit shall be summarily rejected and the opinion of the Industries and Commerce Deptts. representative cannot be over ruled without a reference to the Administrative Dept. i.e. Industries & Commerce Dept. and getting their concurrence.
    5. If there is any SSI unit which is on rate contract with DGS & D of NSIC, then it shall be obligatory on the purchase. Committee/Dept. to place orders directly on then on basis of approved rate contract.
    6. It would be lawful for any SSI unit to go through SICOP or to seek supply order through SICOP or to request/authorise SICOP to present its case before the Dept. and in such cases SICOP shall be treated as the original small scale unit.
    7. No purchase dept./Committees shall conduct force the concerned SSI units for additional quality testing of the unit has already got BIS/ISO 9000 clarification.
    8. If the Dept. supplies raw material to SSI unit for conversion only then the conversion rates may be worked after considering the price preference rate available to SSI units as if the units was supply the finished goods to the Dept. rather than taking only the conversion charges.
    9. For any items where the market price for the goods manufactured by mills are controlled by statutory orders which are not application to SSI units, the price preference may be negotiated on the basis of such statutory rates.

Earnest Money/Security Deposits:

  1. SSI units to pay only 5% of the amount of Earnest Money/Security deposits prescribed in tender notice or 5000/- whichever is higher.
  2. Tender documents to be supplied to SSI units at a cost of which would not exceed Rs. 10/- in each case.
  3. SICOP shall be treated at par with SSI units for purpose of tendering before Govt. Depts.