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  Jammu & Kashmir
Executive Summary
Jammu & Kashmir at a Glance
Advantage J&K
Economic Development
Policy Initiatives
Key Industries, Industrial Potential & Trends
Contact Agency & Approvals
Jammu Kashmir
Please click here to view the draft National PPP Policy and to give comments and suggestions.

Jammu & Kashmir


PPP Initiatives


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:

  • To develop world-class infrastructure for rapid industrial development of the state.

  • To encourages private sector participation and provide the industries with incentives to promote privatisation.

  • To promote of environment friendly industries and providing incentives for upgrading the industrial technology to meet the environmental norms.

Infrastructure policy

Keeping in mind the following key steps, the state aims at the improvement of its general infrastructure.

  • Development of modern industrial areas and estates, growth centres, Integrated Infrastructure Development Centres (IID) etc.
  • Operational management of the major industrial estates will be rationalized, involving local industrialists through a suitable local self managed model both for development works and management of the estates including regulation of power and water supply
  • Treating private sector participation in infrastructure development as an industry for the purpose of availing incentives
  • Facilitation of acquisition of land by the State Government for such private sector initiatives
  • Efforts will be made to ensure that the power supply within industrial areas, estates, IIDCs, etc. is regular, reliable and of good quality
  • Private sector investment in generation and distribution of regular power supply in industrial areas, estates, IIDCs etc. will be actively encouraged
  • Micro-hydel projects are already open for private sector investment. A separate policy on the subject has been announced and implemented by the Power Development Department of the government

Economic Reconstruction Agency: Independent body to support infrastructure development

Fiscal iIncentives provided by the state government and the government of India

  • Capital Incentive Subsidy has been extended to the backward blocks of the state.
  • 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.
  • Toll tax exemption to be continued in the state till end of 2015, subject to the negative list.
  • Debt-Equity ratio of 2.1 is permitted.
  • A 5 per cent rebate on interest on working capital subject to maximum of Rs. 1 million perunit per year.
  • Income tax holiday for a period of 5 years.
  • 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

  • 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.

  • 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.

  • 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.

  • Investments in IT Sector

  • IT for Social Equity

  • IT for Employment

  • IT Infrastructure

  • Localisation

The major policy initiatives spelt out in the IT Policy of the state are as follows:

  • 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.

  • All IT, hardware, software and service industries would be entitled to "Industry" status.

  • 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.

  • Industrial power tariff and all other admissible incentives and concessions applicable to industries in respect of power would be applicable to the IT industry.

  • 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.

  • 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.

  • 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.

  • 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.

Primary objectives of the IT policy

An action plan is being executed to promote industrial growth in the state. Following are the targets under this policy.

  • To achieve sustainable industrial development in all regions for increasing the rate of growth, value of output, employment, income and overall economic development of the state;
  • To strive towards balanced economic and social development in all regions of the state by promoting industrialization particularly of the industrially backward areas
  • To encourage and sustain the cottage and tiny industrial sector which is able to provide employment to a large number of people in the state
  • To create a supportive environment with transparency and easy access in information, technology and financial resources
  • To revive potentially viable sick industrial units so as to put to optimum use of the capital and other resources already employed in such enterprises
  • To promote the growth of thrust and export-oriented industries and encourage high-tech and knowledgeable based industries including information technology
  • To take necessary steps in the field of Human Resources Development to make available skilled/technical manpower as per the needs of industry


Content Source:

Andhra Pradesh
Himachal Pradesh
Jammu & Kashmir
Madhya Pradesh
Tamil Nadu
West Bengal
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