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Office of Divisional Commissioner




How to setup Industry in J&k

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Development of Infrastructure

4. The Government owns developed industrial estates in all the districts of the State. In particular, a number of industrial estates have been developed at and around Jammu city in Jammu region and around Srinagar city in Kashmir Valley for ready allotment of industrial plots to the promoters. A Growth Centre at a cost of Rs. 30 crores is under development at Samba, 40 kms from Jammu on the National Highway (NH 1) towards Punjab. A textile city is proposed to be developed in Kathua close to the J&K - Punjab border. An Export Promotion Industrial Park (EPIP) is under execution at Kartholi about 15kms. from Jammu on NH 1.

5. An Industrial Infrastructure Development (IID) Centre, is under execution at Batal Balian, near Udhampur town, about 70 kms. from Jammu on NH 1, leading to Srinagar.

6. A Growth Centre is being taken up for implementation at Lassipora, Pulwama at a short distance of about 11 kms from the NH 1, nearly 40 kms from, Srinagar in Kashmir Valley towards South (leading to, Jammu). An Export Promotion Industrial Park (EPIP) is being set up near Srinagar airport. An IID Centre shall also be taken up for development near Srinagar city. A software Technology Park (STP) stands technically cleared for development in the existing Rangreth electronics complex, just about 6 kms. from Srinagar city.

7. The Government also plans to develop Industrial Estates with speciallsed facilities for manufacturing/processing of tiles, leather & leather goods, food processing and gems & jewellery and sports goods.

Policy of land allotment

8. The Government shall allot land on long term lease of 90 years in the Industrial Estates and developed areas on first come first served basis. In case of large area requirements, land may be acquired in areas selected by the entrepreneurs and allotted of on lease to the promoter. The amount of premium is already subsidised. Further capital subsidy of 50% shall be available at the time of availment of term loan for construction work. The plot allotted in the Industrial Estates shall be transferable subject to some stipulations and on the condition that the end-use of the land shall not be changed from industry to any other purpose. Capital Investment Subsidy (CIS) and Financial Support on Investment

9. Capital Investment Subsidy (CIS) C& 30% subject to a maximum limit of Rs. 30 lakh shall be available on capital investment. In priority areas of electronics including computronics and software, food processing including agro-based Industries (excluding conventional grinding/extraction units), floriculture, handicrafts, leather processing and leather goods, sports goods, forest-based Industry (excluding saw-mills and Joineries), processing of aromatic plants and herbs, pharmaceuticals based on herbs, bulk-drugs, silk reeling, weaving, processing, printing and made-ups, textile goods 'Including spinning, weaving, processing, printing, hosiery and made ups, cutting and polishing of stones, gems and jewellery, precision engineering and other areas identified as thrust areas, the upper limit of the total subsidy has been increased to Rs. 45 lakh. For prestigious units (those with capital investment of minimum Rs. 25 crores) the upper limit of CIS shall be Rs. 75 lakh in thrust areas and Rs. 60 lakh otherwise. Over and above this amount, 100% subsidy on project feasibility report and I 00% subsidy on testing equipment (with some monitory ceilings) for maintaining quality standards shall also be available. Purchase of captive DG sets upto I MW also qualifies for 100% capital subsidy.

10. The J&K State Industrial Development Corporation (SIDCO) shall join the capital investment of the promoters on a selective basis on joint sector/Assisted sector approach. The financial assistance is also available under the National Equity Fund Scheme of the Small Industries Development Bank of India (SIDBI) for units in the SSI sector. Supply of Power

11. The State of J&K is moving towards self-sufficiency in production of electrical energy. Presently, there are gaps in its peak load requirements and the maximum supply available. But as a matter of policy, the industry shall be given priority while making quality power supply to the consumers. The State has a very vast potential for generating hydro electricity, with about 1500OMWs already identified. The State has recently signed MOUs with experienced and reputed international firms for execution of 450 MWs Baglihar Project, 390 MWs Kishanganga Project and also for investigation of 280 MWs Uri Phase 11 Project. With the commissioning of these power projects over the next about 4 years, the State would become self-sufficient in power generation.

12. All the Industrial Estates shall have dedicated power receiving stations as per their assessed load. Power connection shall be available at the door step of the promoter. Those needing supply of energy at HT transmission shall be required to install their own receiving stations.

13. The industrial power-tariff is regulated by the Statute. Presently, the tariff for industry is fairly attractive.

14. The Industrial units may install their own captive power generation plants. In case of these power stations, no electricity duty shall be levied by the government. Clearences and procedures

15. For the projects which can be accommodated within the sanctioned policy and do not require assistance beyond the sanctioned Package of Incentives, a High Level Empowered Committee has been constituted to give clearances on behalf of all the concerned government departments and agencies, saving the promoter of the botheration of moving from door to door.

16. Till the State reaches self-sufficiency in power generation, labour/capital intensive units not needing bulk power supply shall receive top-priority by the High Level Empowered Committee. Pollution Control & Environment Protection

17. The State accords highest priority to the control over water and air pollution and to preservation of environment. There are laws governing these subjects, the enforcement of which is monitored by the J&K State Pollution Control Board which functions as an autonomous agency, in close co-operation with the Central Agencies. The industrial units shall have to meet the requirements laid down by the, statutes. The Board shall give,_ necessary clearance on being satisfied that the required pollution control measures have been proposed to be adopted by the promoter. SIDCO shall help the promoter in getting these clearances expeditiously.

18. The Government shall take up provision of effluent treatment plants in the industrial estates as a common facility on selective basis. The Government shall also help the industry in adopting such measures through the Central Schemes of financial assistance. Thrust Areas

19. The Government have identified certain thrust areas for accord of priority in the matter of industrial growth. The projects in these areas shall receive priority in the matter of allotment of land, sanction of power and other clearance from the High Level Empowered Committee as also in the matter of grant of incentives. For the time being these areas are - electronics including computronics and software, food processing including agro-based industries (excluding conventional grinding/ extraction units) floriculture, handicrafts, leather processing and leather goods, sports goods, forest based industry (excluding saw-mills and joineries), processing of aromatic plants and herbs, pharmaceuticals based on herbs, bulk drugs, silk reeling, weaving, processing, printing and made-ups, items of textile goods including spinning weaving, processing, printing hosiery and made-ups, cutting and polishing of stones, gems and jewellery, precision engineering and other identified as thrust areas.



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