SRINAGAR, NOV 03: In a significant development, the implementation of the new industrial policy in Jammu and Kashmir has ignited a flurry of investment projects, amounting to nearly Rs 25 thousand crore, that are currently under execution.
This monumental progress is marked by the allocation of 11,861 kanals of land for setting up approximately 1,767 units in both new and existing industrial areas across the union territory.
Furthermore, Jammu and Kashmir has realized investments worth ₹2,153.45 Crores during the financial year 2022-23, marking the highest level of investments seen in the last decade. The momentum shows no signs of slowing down, with investments realized during the current Financial Year 2023-24 (up to September 30) reaching ₹1,752.1 Crores in just six months, the highest ever recorded.
According to data released by the Industries and Commerce department, 169 units with an investment worth ₹7,096 Crores and employment opportunities for 21,076 people have initiated groundwork and are set to commence production shortly. Additionally, the department has received a staggering 6,231 total investment proposals with a combined investment of ₹87,923 Crores, promising the potential for 3,92,162 jobs.
A notable highlight of this industrial transformation is the Central Government’s unprecedented investment through the New Central Sector Scheme (NCSS) with a financial outlay of ₹28,000 Crores.
This scheme offers an impressive return on investment (RoI) of up to 400%, providing fiscal incentives to Micro, Small, and Medium Enterprises (MSME) players to establish units within the Union Territory of Jammu and Kashmir.
The average investment per kanal has seen a significant increase, now standing at 2.24 Crores, compared to the previous 0.24 Crores per kanal, based on land premium received. The Pradhan Mantri Employment Generation Program (PMEGP) has played a pivotal role, with 89,063 cases sanctioned and ₹1,150 Crores in margin money released, thereby offering employment to more than 7,12,504 people since 2019.
In a strategic move to provide land for setting up industrial units, a change of land use certificate (CLU) has been introduced to diversify the industrial base, thereby reducing dependency on government estates. Private industry is currently developing 3,722 kanals of land in this initiative.
The development of the region is further bolstered by the creation of 46 new Industrial Estates, covering an area of 17,012 kanals, increasing the total to 110 estates. The Central Public Sector Undertakings (CPSUs) NBCC and IRCON have been engaged to fast-track the development of six new Industrial Estates.
To encourage vertical expansion, the Floor Area Ratio (FAR) has been increased from 0.61 to 1.5 without any additional charge. Additionally, one of the lowest power tariffs for industrial units in India has been introduced, significantly reducing the cost of doing business.
To facilitate project grounding, land acquisition efforts are well underway. Indents have been placed for new land spanning 20,794 kanals, with an additional 6,021 kanals of land identified and awaiting indents. Furthermore, 4,400 kanals of land are expected to be acquired under private industrial estates.
In a bid to promote ease of doing business, Jammu and Kashmir launched the Single Window System in February 2022, offering 182 services online. All services provided through this system are mandated under the Jammu and Kashmir Public Service Guarantee Act, 2018. The union territory has also integrated with the National Single Window System and adopted various other portals to ensure citizens receive services within a stipulated time frame, with provisions for compensation in cases of delay or denial.
