Subject: Economy, Schemes in news
New Industrial Development Scheme for Jammu & Kashmir (J&K IDS, 2021)
√Government of India has formulated New Industrial Development Scheme for Jammu & Kashmir (J&K IDS, 2021) for the development of Industries in the UT of Jammu & Kashmir.
√ It is a Central Sector Scheme.
√The scheme aims to take industrial development to the block level in UT of J&K, which is first time in any Industrial Incentive Scheme of the Government of India.
√ The financial outlay of the proposed scheme is Rs.28400 crore for the scheme period 2020-21 to 2036-37.
√ Scheme while encouraging new investment, also nurtures the existing industries in J&K by providing them working capital support at the rate of 5% for 5 years.
√Main purpose of the scheme is to generate employment which directly leads to the socio economic development of the region.
√ It aims at development of Manufacturing as well as Service Sector Units in J&K.
√Scheme is made attractive for both smaller and larger units.
√ It attempts for a more sustained and balanced industrial growth in the entire UT.
√ Scheme has been simplified on the lines of ease of doing business by bringing one major incentive- GST Linked Incentive- that will ensure less compliance burden without compromising on transparency.
√ It is not a reimbursement or refund of GST but gross GST is used to measure eligibility for industrial incentive to offset the disadvantages that the UT of J&K face.
?focus area for prelims 2021
√Aim and features of the scheme
√Central Sector Scheme