Jammu and Kashmir Government receiving proposals worth over Rs 51,000 crore for investment is a candid reflection of an alluring investment friendly environment in the union Territory after the launch of New Central Sector scheme for industrial development in the UT.
The J&K administration in January 2021 had announced a new industrial developmental scheme with an outlay of Rs 28,400 crore to encourage new investment and take industrial development to the block level. The new policy, which will be applicable till 2037, also paved the way for bigger investors to invest in J&K. According to reports, these potential proposals are estimated to generate 2.37 lakh employments and the clearance process of these proposals has already been fast tracked.
Four types of Incentives under the scheme
The new central sector scheme provides four types of incentives including Capital Investment Incentive, Capital Interest Subvention, Goods & Services Tax Linked Incentive and Working Capital Interest Subvention. Moreover, in order to boost industrial development in UT, the government of J&K has also notified the J&K Industrial Policy, J&K Private Industrial Estate Development Policy and J&K Industrial Land Allotment Policy.
Lieutenant Governor Manoj Sinha said, “Jammu & Kashmir, nestling in the lap of Himalayas, is on a mission to be country’s fastest growing region. Government’s prime objective is to extend trust with business conglomerate and strengthen existing regulatory policies to attract investments benefiting Citizens.”
Agreements for further development
Meanwhile, Jammu and Kashmir had signed six agreements that will bring investments in the union Territory’s real estate, infrastructure, tourism, healthcare and manpower employment sectors among others at Dubai Expo 2020. Several UAE based businesses signed Memorandums of Understanding (MOUs) with Jammu & Kashmir which included Al Maya Group, MATU Investments LLC, GL Employment Brokerage LLC, Century Financial, and Noon E-commerce. One Letter of Intent (LOI) was signed with Magna Waves Private Limited, Emaar Group and Lulu International.
J&K: Attraction for investors post abrogation of Article 370
Speaking at the Investors Summit in Dubai on January 6, Lieutenant Governor, Manoj Sinha, said that Jammu and Kashmir has transitioned from a dormant commercial destination to a region of opportunity and investment. In 2021, the union Territory got $2.5 billion (approximately Rs 18,568 crore) investments demonstrating the region’s vast opportunities and business potential.
For economic empowerment of Jammu and Kashmir, a 36-member business delegation from UAE visited Kashmir Valley to explore business opportunities. An official said around 70 thousand crore investment is expected to come from foreign investors. The business community of Jammu and Kashmir welcomed the step saying it will be a start of a new era of economic development of Jammu and Kashmir.
Recently, union Minister for Commerce and Industry, Piyush Goyal, during his visit to the UT remarked that Kashmir has become an “attraction for investors” both in India and internationally after abrogation of Article 370.
