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Industrial Development in Border Areas

Department for Promotion of Industry and Internal Trade (DPIIT) in the Ministry of Commerce and Industry has been implementing several schemes for industrial development in the border areas being Hill states, in the Union Territory of Jammu & Kashmir and Union Territory of Ladakh, Himachal Pradesh, Uttarakhand and North Eastern States including Sikkim.  These schemesare not implemented in other border states of Rajasthan, Punjab and Gujarat.

 

  1. The Industrial Development Scheme for Union Territory of Jammu & Kashmir and Union Territory of Ladakh, 2017:

 

  • The Scheme for Union Territory of Jammu & Kashmir and Union Territory of Ladakh covers manufacturing & services sector and provides (i) Central Capital Investment Incentive (30% of the investment in plant & machinery with an upper limit of Rs. 5 crore),   (ii) Central Interest Incentive (3% interest on working capital for 5 years) (iii) Central Comprehensive Insurance Incentive (Reimbursement of 100% insurance premium for 5 years),  (iv) Income Tax Reimbursement of centre’s share for 5 years, (v) GST reimbursement of Central Government share of CGST & IGST for 5 years, (vi) Employment Incentive under which additional 3.67% of the employer’s contribution to EPF in addition to Government bearing 8.33% Employee Pension Scheme (EPS) contribution of the employer in Pradhan MantriRojgarProtsahanYojana (PMRPY) and (vii) Transport incentive on finished goods movement by Railways(20% cost of the transportation), by Inland Waterways Authority (20% of the cost of transportation) & by air (33% of cost transportation of air freight) from the station/port/airport nearest to unit to the station/port/airport nearest to the destination point.
  • A single unit can avail overall benefits upto Rs. 200 Crore.
  • The Scheme is effective from 15.06.2017 to 31.03.2020. Extension of scheme beyond 31.03.2020 will be considered after evaluation of the scheme.
  • A total of Rs. 430.01 crore has been disbursed to the erstwhile State of Jammu & Kashmir under the earlier Special Package Schemes.

 

  1. The Industrial Development Scheme for Himachal Pradesh and Uttarakhand, 2017:
  • The scheme for Himachal Pradesh and Uttarakhand also covers manufacturing & services sector and provides (i) Central Capital Investment Incentive (30% of the investment in plant & machinery with an upper limit of Rs. 5 crore) (ii) Central Comprehensive Insurance Incentive (Reimbursement of 100% insurance premium for 5 years).
  • The scheme is in force from 01.04.2017 to 31.03.2022.
  • A total of Rs. 371.67 crore for Himachal Pradesh and Rs. 350.42 crore for Uttarakhand has been disbursed under earlier Special Package Schemes.

 

  1. Scheme of Budgetary Support under Goods and Services Tax (GST) Regime to the units located in Union Territory of Jammu & Kashmir, Union Territory of Ladakh, Uttarakhand, Himachal Pradesh and North Eastern States including Sikkim, 2017:
  • Under the Scheme, reimbursement of the Goods and Service Tax is provided to the extent of Central Government’s share of CGST and IGST retained after devolution to the states.
  • The Scheme was notified on 05.10.2017. The Scheme is valid from 01.07.2017 to 30.06.2027. An outlay sanction of Rs. 27,413 Cr. is estimated for the Scheme.

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