GoI making every possible effort to promote J&K as investment destination: ASSOCHAM

Says providing a boost to horticulture, handicrafts will also attract investments

Srinagar, Publish Date: Feb 21 2018 12:41AM | Updated Date: Feb 21 2018 12:41AM
GoI making every possible effort to promote J&K as investment destination: ASSOCHAMRepresentational Pic

Government of India is making every possible effort to promote Jammu and Kashmir as an investment destination with a special focus on easy availability of land for aspiring industrialists, better connectivity within the state and with rest of the country and a boost to traditional sectors such as handicrafts and horticulture, according to a report released by a leading all-India level business chamber.

The report titled ‘Revolutionising MSME Manufacturing: A step towards new Infrastructure” released by Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Resurgent India at an event in Jammu on Monday.

According to the report, Department of Industrial Policy & Promotion (DIPP) has extended a Special Incentive Package to attract more investments to the state.  

“This includes 100 percent premium reimbursement under Central Comprehensive Insurance Subsidy Scheme to all units on expansion over the next five years. The DIPP also allowed capital investment subsidy of 15 percent on investment in plant and machinery; the subsidy is applicable for five years from the date of commencement of production,” the report states.

The report has also highlighted that horticulture and handicrafts in Kashmir if provided modern infrastructure and techniques can also attract huge investments.  “Under the ‘Apple Insurance Scheme’, the state government has decided to construct a chain of compressed air stores in each district of the state in order to introduce modern pre- and post-harvest technologies,” the report states.  It says in order to attract investments in handicrafts; the state has established the Jammu & Kashmir Handicrafts Sales & Export Promotion Corporation and Jammu and Kashmir State Handloom Development Corporation.  

“J&K’s handicrafts are world famous, on the back of which, handicraft industry of the state witnessed huge growth. A total of US$ 0.086 million (about Rs 56 lakh) funds were released under the handicraft schemes in J&K during 2015-16 (up to November 2015),” the report states.

The report has highlighted that J&K has an industrial policy that offers “attractive incentives” along with a single-window clearance mechanism. “Land is allotted at concessional rates in industrial areas on lease for 90 years. J&K has an industrial policy that offers attractive incentives along with a single- window clearance mechanism,” the report states.

In order to boost movement of goods and overall logistics development, the government is planning to build two highways in order to provide all-weather connectivity from Jammu to the Kashmir valley.

“The first project of four-lane of Ramban-Banihal section of National Highway-1A (now NH-44) in Jammu & Kashmir will cost US$ 271 million (Rs 1757 crore). Another project is related to four-lane of Udhampur- Ramban section of National Highway. The 40.07-km road project will cost US$ 293 million (Rs 1899 crore). Also, the Border Roads Organization (BRO) is going to take up the up gradation of Jammu-Poonch highway into a four-lane expressway,” the report says.

The report says most important industries of Jammu and Kashmir are Silk Textile, Carpet-Making and Woolen Textile, Forest-based Industries, Agro-based Industries, Paper Mache, Cement Industry , Industrial Complexes.

“There is an urgent need to develop forest-based industries in the state on a scientific basis. The state of Jammu and Kashmir has an agrarian economy. In fact, agricultural products not only yield over 50 per cent of the states Gross Domestic Product (GDP), it provides raw materials to a number of industries,” the report suggests.