Jammu: The Jammu and Kashmir government has proposed a sweeping set of amendments to its Industrial Policy 2021–30, aiming to introduce a range of new incentives and benefits to boost investment, promote green industry, revive sick units and encourage innovation across the Union Territory.
Through a public notice issued by the Industries and Commerce Department, the government has placed the proposed incentives in the public domain and invited suggestions, inputs and comments from stakeholders within 21 days from the date of publication.
The proposed amendments have been uploaded on the official websites of the Industries and Commerce Department and the Directorates of Industries and Commerce in Jammu and Kashmir.
According to the notice, the policy is being revisited to align it with best practices followed in other States and Union Territories, while keeping in view the specific economic and geographic needs of Jammu and Kashmir.
Industry associations, trade bodies, entrepreneurs, businesspersons, industry experts, academia, civil society groups and the general public have been asked to review the proposals and submit their feedback through official email channels. Suggestions received after the stipulated period will not be considered.
One of the key focus areas of the proposed amendments is clean and sustainable industrial activity. The government has proposed incentives to promote rooftop solar installations with net metering and Green Open Access across industrial estates.
This includes a 25 per cent capital subsidy, capped at ₹25 lakh, along with a waiver of open-access charges to encourage the adoption of renewable energy.
In a significant relief to investors, new industrial units and existing units undertaking substantial expansion are proposed to be granted 100 per cent exemption from stamp duty on land transactions in government industrial estates. The exemption will cover lease deeds as well as mortgage deeds.
To enhance quality, compliance and sustainability standards, the government has proposed 100 per cent reimbursement of costs incurred in obtaining recognised certifications.
These include labour and ethical compliance certifications such as SA 8000 and SMETA, sustainability and clean energy certifications like ISO 50001, GreenPro and GreenCo, and quality and management system certifications such as ISO 9001, ISO 14001 and ISO 45001. The reimbursement will be subject to a ceiling of ₹10 lakh per enterprise, a substantial increase from the existing cap of ₹2 lakh.
For technology adoption, MSMEs are proposed to receive a subsidy of 50 per cent of the cost, capped at ₹25 lakh, for automation and technology upgradation when technology is sourced from recognised national institutes. This again marks a sharp enhancement from the existing limit of ₹2 lakh.
The proposed policy also strengthens environmental safeguards. New units, existing units and those undertaking substantial expansion will be eligible for a 60 per cent subsidy on the cost of new pollution control devices, subject to a maximum of ₹50 lakh. In addition, a green and environment protection initiative proposes a 50 per cent subsidy, capped at ₹50 lakh, for investments in green buildings, circular economy practices, rainwater harvesting, wastewater recycling, zero discharge processes, solid waste management and other green measures certified by the J&K Pollution Control Board.
Another major proposal relates to power backup. The government has proposed 100 per cent subsidy on the purchase and installation of a single new DG set with capacity ranging from 10 KW to 2000 KW, subject to a cap of ₹40 lakh in Zone A and ₹45 lakh in Zone B.
On the taxation front, the proposed amendments include reimbursement of 100 per cent SGST paid by eligible industrial units for a period of five years. The ceiling will vary by enterprise size and zone. Micro enterprises will be eligible up to 200 per cent of fixed capital investment in Zone B and 150 per cent in Zone A. Small and medium enterprises will be eligible up to 150 per cent of fixed capital investment in Zone B and 100 per cent in Zone A. Medium and large enterprises in Zone B will be eligible up to 100 per cent of fixed capital investment. The incentive will apply to both manufacturing and service sector units.
The proposal also includes enhanced incentives for fixed capital investment. MSME units in Zone A are proposed to receive 30 per cent financial assistance with a ceiling of ₹50 lakh, while MSMEs in Zone B may receive 50 per cent financial assistance with a ceiling of ₹1 crore. Women-led MSMEs, defined as those with at least 51 per cent stake held by women, are proposed to receive an additional 25 per cent financial assistance across all zones.
To promote innovation and intellectual property creation, the government has proposed a one-time incentive covering 100 per cent of actual filing costs for awarded patents. The incentive will be capped at ₹2 lakh for domestic patents and ₹5 lakh for international patents.
The draft amendments also address the revival of sick units. A special mechanism is proposed to identify and rehabilitate sick SME units, as per RBI definitions, and such units under revival will be extended the same incentives as new industrial units under the current policy.
For units operating in focus sectors identified under the Industrial Policy 2021–30, the government has proposed a multiplier incentive. Such units would receive an additional incentive equivalent to 1.25 times the eligible amount, over and above the incentives otherwise admissible.
In a move aimed at encouraging formal capital markets participation, the policy proposes a reimbursement of ₹50 lakh to industrial units registered in Jammu and Kashmir that successfully list their equity on recognised stock exchanges such as the NSE or BSE. The incentive would be released upon submission of proof of listing and compliance with all applicable norms.
To ease compliance burdens for new enterprises, the proposed amendments reiterate the provision of a single “Certificate of In-Principle Approval” for new MSMEs, based on self-declaration. This certificate will allow a three-year grace period for obtaining all necessary departmental clearances.
The policy also reaffirms provisions for mega projects, already notified under the land allotment policy. Mega projects, defined as industrial or service sector units with a minimum capital investment of ₹1,000 crore excluding land and working capital, will be processed through the Single Window Portal’s land application module for preferential investments. The government may extend tailor-made incentives to such projects as deemed necessary under applicable policies and procedures.
The government has urged all stakeholders to actively participate in the consultation process to help shape a more robust, inclusive and investment-friendly industrial ecosystem in Jammu and Kashmir.
