Industrial Development Activities - Jammu & Kashmir State Industrial Development Corporation

Modernisation of Existing Units

J&K SIDCO with a view to encourage modernisation of existing small scale industrial units, to enable it to achieve higher productivity, energy efficiency and better environment protection, and thus improve its sustainability in the competitive environment, capital investment subsidy of the state government will be applicable to such units all over the state subject to a limit of Rs.30 lakhs. Units availing incentives under the definition of ‘substantial expansion’ shall not be entitled to this. Application for modernisation must be submitted to the Director, Industries and Commerce, in the prescribed form, obtainable from his office and only after the scheme is approved by a committee consisting of Principal Secretary (Finance), Principal Secretary (Planning) and Principal Secretary (Industries and Commerce), the applicant shall commence work thereon. Approval and disbursement of the incentives will be done on the same pattern as the CIS of the state government.

Brand Promotion

In order to help such manufacturers of consumer products who are in a highly competitive market, the government will provide assistance to them in promoting brands within and outside the state. The assistance will be in the shape of subsidy at the rate of 50% of expenses incurred in the first year subject to a limit of Rs.20 Lakhs, 30% of expenses incurred in the second year, subject to a limit of Rs. 15lakhs and 10% of expenses incurred in the third year subject to a limit of Rs.10 lakhs. Application is prescribed form obtainable from the office of the Director Industries and Commerce must be submitted prior to undertaking the activity. Such applications shall be scrutinised by a committee consisting of the Principal Secretary (Finance), Principal Secretary (Planning) and Principal Secretary (Industries and Commerce), and only after the scheme is approved, the applicant may begin its implementation, if the incentive is to be availed. A system of monitoring shall be instituted and if the applicant deviates from the approved scheme, without prior approval, the incentive will be denied to him and the moneys already paid to him may be recalled at the discretion of the approving authority.

Rehabilitation of Sick Units

An enormous amount of capital is locked in sick/closed industrial units in the form of infrastructure and investment. Though industrial sickness is a wide spread phenomenon, its impact is comparatively high in J&K. The initiative for rehabilitation of sick units should primarily come from the concerned industrial unit, financial institutions and the commercial banks, the government playing a catalytic and supportive role. Government Order No. 47-Ind of 1999 dated 10-02-1999, currently in vogue, will continue. Besides, the Government will separately announce an debt relief package too. These sick industrial units shall have the option of taking advantage of either of the two packages.

Export Promotion

Exports have come to be regarded as an engine of economic growth. However, the share of J&K in the overall exports of the country is very low, limited mostly to handicrafts and dry fruits processed by the SSI sector. The State has a vast potential for exports, both in traditional and non-traditional items. With a view to promote exports of the State, two Special Economic Zones (SEZs), one each in Jammu & Kashmir, Province, are under finalisation. An Inland Container Depot is ready at Bari Brahamana which will cater to the needs of the exporters. Various projects under the Assistance to States for Developing Export Infrastructure (ASIDE) Scheme of Government of India, Ministry of Commerce are under implementation in the state to strengthen export infrastructure. Air cargo complexes in Srinagar and Jammu will also be taken up in the near future.

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