05212018Headline:

Jammu & Kashmir State Policies

Jammu & Kashmir Industrial Policy, 2004-2015

The Industrial Policy, approved by the government of J&K in January 2004, shall remain in effect till March 2015 with a view to give stability and consistency to the policy. It emphasizes on the need to promote local employment in industrial units of the state, while acknowledging that specific skills may not be available in the state. While planning to take initiatives to train local youth in such skills, the policy has laid ‘ensuring maximum local employment in industrial units’ as a condition of approval for any new industrial units.

While listing incentives such as in land allotment, Capital investment subsidy (CIS), CST, Interest subsidy, stamp duty, subsidy on pollution control measures etc for particular investors, the focus remains largely on creating an enabling environment. There was nothing specific for Electronics industry in this policy.

Read Full Policy

Jammu & Kashmir IT Policy, 2004

The state also came up with a separate IT policy in 2004 that is still in force. As per the policy, all IT Hardware, Software and IT services sector is deemed as manufacturing activity for the purpose of incentives for the industry. Thus, all incentive packages available under Industrial Policy 2004 will be applicable to IT industry as defined above.

Apart from the incentives as per Industrial policy, the policy mainly focuses on creating an enabling environment like setting up IT industry & infrastructure, human resource development, promoting eGovernance etc.

Read Full Policy

Jammu & Kashmir IT Policy, 2012 (Draft)

Acknowledging that the government of Jammu & Kashmir is yet to realize its true potential
in IT/ITES Sector and looking to the large number of employment opportunities associated with this sector, it announced its Draft IT policy in 2012. However, the policy is yet to come into being.
Below is the list of some major fiscal incentives of the draft policy:

  • The State Government can offer customized package of incentives for prestigious investment proposals i.e. project s where total investments are more than Rs. 10 Crore by any companyafter due approval of the Apex committee
  • Investment Incentive: Investment Incentive (Capital subsidy) For New Units @ 30% of the Fixed Capital Investment (FCI) to the Micro, Small, Medium & Large units subject to maximum of 9 Crores for Large, 4.5 Crores for Medium and 1.5 Crores for Small and 30 Lacks for Micro Units, shall be available to the Information Technology units set up in designated IT Parks or notified area for IT Development in the J&K State; else @10% in any other location within the State but outside of designated area or notified area for IT Development
  • Above is subjected to the first 10 Units in a financial year, and circulars notified from time to time on the number of units per financial year & clearance from the Apex Committee
  • Stamp Duty Exemption: Property transaction in the designed Information Technology Parks shall be exempted from payment of stamp duty. There shall be no stamp duty on lease and financial instruments of units located in such parks
  • Exemption/deferment from General Sales Tax and Central Sales Tax as per the available
  • industrial policy in J&K State
  • Exemption from entry tax and Excise Duty for IT infrastructure and related equipments for 10 years
  • Exemption from service tax for a period of 10 years
  • There is no Central Sales Tax (CST) for the new IT industrial units till March 31, 2015

 Read Full Draft Policy

Jammu & Kashmir Solar Policy, 2010

The State government introduced the Solar Power Policy in October 2010 that will be in effect till a new policy is brought or modifications are made to this policy. The primary objective of this policy is to meet the targets under Jawaharlal Nehru National Solar Mission (JNNSM). The Mission has set a target of 20,000MWand stipulates implementation and achievement of the target in 3 phases (first phase upto 2012-13, second phase from 2013 to 2017 and the third phase from 2017 to 2022) for various components, including grid connected solar power.
This policy too emphasizes on creating an enabling environment for generation of clean energy. However, no major fiscal incentives have been announced apart. Additionally, wheeling charges would apply for transfers and facility of banking would extend to captive use only, not third party sale.

 Read Full Solar Policy

 

 

What Next?

Recent Articles

Leave a Reply

You must be Logged in to post comment.