- J&K Industry Gets Major Lifeline, Eligible Waiting Units to Enter ₹28,119-Crore NCSS Framework
- Centre Allows Use of ₹5,630.75 Crore under NCSS to Register More Industrial Units in Jammu and Kashmir
JAMMU, AUGUST 9: In a significant boost to industrial development in Jammu and Kashmir, the Apex Committee of the Central Government has permitted the utilisation of approximately ₹5,630.75 crore available under the New Central Sector Scheme for Industrial Development of Jammu and Kashmir to grant registration to eligible industrial units beyond the 918 units already registered under the scheme.
The decision has been formally conveyed to the Jammu and Kashmir administration and is expected to benefit a large number of eligible units currently placed on the waiting list.
According to the official communication, an estimated ₹5,630.75 crore has emerged as potentially available under the NCSS. Of this, around ₹4,551.01 crore represents the difference between investments originally proposed in Detailed Project Reports and the actual final investment made in plant and machinery by registered units. Another ₹1,079.74 crore remains available from the approved scheme allocation.
Taking these savings into account, the Apex Committee has allowed the available amount to be used for granting registration to additional eligible units beyond the existing 918 registrations.
However, the Committee has made it clear that the total financial liability under the scheme must remain within the approved overall outlay of ₹28,119 crore.
A substantial portion of the anticipated savings, around ₹3,500 crore, has reportedly arisen due to reductions in GST rates. The Apex Committee has decided that a final call on utilising these GST-related savings for further registrations will be taken separately at a later stage.
The Committee has also asked the concerned authorities to continue assessing additional savings based on the actual investment made by newly registered units in plant and machinery. This could potentially create further fiscal space within the approved scheme outlay.
Eligible industrial units currently on the waiting list will be considered for registration by following the same procedure already in force. Priority will continue to be determined on the basis of the date of registration.
Under the prescribed process, the registration date is treated as the date on which all required documents are completed and uploaded on the official portal. The authorities have also been directed to maintain full transparency and ensure that any deficiency, error or missing document in an application is communicated to the concerned applicant through the portal within the stipulated period.
In another important decision, the Apex Committee has permitted fungibility and reappropriation of funds among different incentive components of the NCSS depending on actual and projected requirements.
These components include Capital Investment Incentive, Capital Interest Subvention, GST-Linked Incentive and Working Capital Interest Subvention. Such adjustments can be made without increasing or altering the total approved financial ceiling of the scheme.
The decision assumes particular significance because the NCSS has received a strong response from investors, with a substantial number of industrial proposals awaiting registration.
The Apex Committee had met in New Delhi on July 11 under the chairmanship of Union Home Minister Amit Shah. The meeting was attended by Union Minister for Commerce and Industry Piyush Goyal, Lieutenant Governor Manoj Sinha, Union Home Secretary Govind Mohan, Chief Secretary Atal Dulloo, Commissioner Secretary Industries and Commerce J&K Vikramjit Singh and senior officers from the Union Ministries of Home Affairs and Commerce and Industry.
The New Central Sector Scheme was launched on April 1, 2021 to accelerate industrialisation in Jammu and Kashmir and encourage fresh investment across the Union Territory. The scheme is to remain operational till 2037, with registered units eligible to avail incentives during the prescribed period.
The Jammu and Kashmir administration has also been pressing the Centre for a substantial enhancement in the incentive package, reportedly seeking an increase to ₹75,000 crore in view of the large number of investment proposals received under the scheme.
Several industrial houses awaiting registration have been closely watching developments relating to the availability and possible enhancement of incentives.
The industrial policy was conceived to attract investment, establish new enterprises, strengthen manufacturing and services, and generate large-scale employment across Jammu and Kashmir. The initial policy framework had envisaged the creation of around three lakh jobs, with expectations that employment generation could rise further as industrial activity expands.
The latest decision to utilise available savings for additional registrations provides immediate relief to eligible investors on the waiting list. Its larger impact, however, will depend on how quickly registrations are processed, projects move from proposals to actual investment, and promised industries begin generating sustainable employment and economic activity on the ground.