Vision & strategy
The state of Jammu and Kashmir aims to take initiatives and progressive policies for socio-economic development of the state by making optimum use of the rich and abundant natural and human
capital resources in the state.The state is keen to promote employment opportunities in the industrial units of the state and has thus kept ensuring maximum local employment in industrial units
a condition of approval for any new industrial unit.The broad elements of the strategy adopted to address overall economic development of the state are:
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To develop world-class infrastructure for rapid industrial development of the state.
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To encourages private sector participation and provide the industries with incentives to promote
privatisation.
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To promote of environment friendly industries and providing incentives for upgrading the industrial technology to meet the environmental norms.
Infrastructure policy
The state is witnessing revival of infrastructural set up as the state government is developing a number of industrial estates and other infrastructural units. A growth centre worth US$ 6.2 million
is under development at Samba on the National Highway 1. An Export Promotion Industrial Park (EPIP) at Kartholi and an Industrial Infrastructure Development (IID) centre near Udhampur town are also
under execution. Besides these, the state is considering setting up a growth centre, an EPIP and a Software Technology Park.The government also plans to develop industrial estates with specialised
facilities for manufacturing/ processing of tiles, leather & leather goods, food processing and gems & jewellery and sports goods in the state.
Economic Reconstruction Agency: Independent body to support infrastructure development
Fiscal iIncentives provided by the state government and the government of India
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Transport subsidy under the Government of India scheme is extended till 2007.
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Capital Incentive Subsidy has been extended to the backward blocks of the state.
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A 3 per cent subsidy shall be payable on the working capital facilities available from the commercial banks to all existing units, in addition to the 3 per cent interest subsidy available to the new industrial units.
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Toll tax exemption to be continued in the state till end of 2015, subject to the negative list.
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Debt-Equity ratio of 2.1 is permitted.
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A 5 per cent rebate on interest on working capital subject to maximum of
Rs. 1 million perunit per year.
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Income tax holiday for a period of 5 years.
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90 per cent transport subsidy provided from railhead to factory site on raw material and finished goods.
The state government has approved constitution of economic reconstruction agency as a society to develop infrastructure under
externally aided projects. The money from the external sources will be routed to the agency from the Department of Economic Affairs and
Ministry of Finance of the Government of India and it will assess and implement the projects independently.
Information Technology policy
Recognising the significance and enormous potential of Information Technology (IT) in economic development of the state,
the state government aims to facilitate the creation of a sound IT production base in the state through conscious efforts and policy
initiatives.
Primary objectives of the IT policy
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E-Governance: To use IT in the process of government functioning to bring about Simple, Moral, Accountable, Responsive and Transparent (SMART) governance to its citizens.
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IT in Industry: To use IT effectively in industries especially where the state has competitive advantages, for making such industries more global and help them to generate additional
revenues; to diversify the local industries into being web-enabled and attract IT companies from elsewhere in the country and the world.
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IT in Education: Encourage the use of Information Technology in schools, colleges and educational institutions so as to enable students to improve their kills, knowledge and job
prospects and enable them to obtain employment in this sunrise industry.
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Investments in IT Sector
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IT for Social Equity
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IT for Employment
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IT Infrastructure
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Localisation
The major policy initiatives spelt out in the IT Policy of the
state are as follows:
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IT software and services shall be deemed as manufacturing activity for the purpose of incentives for the industry in line with the approved policy of Government of India.
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All IT, hardware, software and service industries would be entitled to "Industry" status.
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IT software and services industry would be treated as industrial consumers and electricity tariff applicable to the industrial consumers would be levied on such industries.
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Industrial power tariff and all other admissible incentives and concessions applicable to industries in respect of power would be applicable to the IT industry.
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The State Power Development Department would ensure good quality uninterrupted power supply to the IT units which are located in clusters/estates set up for this purpose.
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The state financial institutions and the banks would treat IT hardware, software and IT services as priority sectors and will be allowed to invest in this industry in the form of equity in line
with the approved policy of Government of India.
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The government would facilitate creation of a Venture Capital fund of US$ 5.2 million, to begin with, in association with the financial
institutions to meet the equity requirements of the Small and Medium Enterprises/IT startups.
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The state government would encourage flow of investments including FDI and would provide full support wherever
required. The state government will offer a special package of Policy
on Information Technology incentives for projects where total investments are more than US$ 2.1 million.
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