How to set up an Industry in Jammu and Kashmir
1. PROCEDURE FOR REGISTRATION OF INDUSTRIAL UNITS
The small scale industrial units have necessarily to be registered with Directorate of Industries
and Commerce Deptt. As per present nomenclature the small scale sector is considered to be a
sector where investment in plant and machinery does not exceed Rs. one crore. Registration of
medium and large scale sectors is being looked after by Secretraiat for Industrial Approvals SIA,
Ministry of Industry Govt. of India. The entrepreneur whether individual, a firm or a company
has to prepare pre feasibility report and fill in the precribed form with General Manager Distt.
Industries Centre of the S.I.A. Govt. of India as the case may be to obtain regisatration.
2. INCENTIVES AVAILABLE TO INDUSTRIAL SECTOR
The new industrial policy 1998-2003 together with package of Incentives for Development of
Industries in J&K State isas
SIDCO acts as a Nodal agency for Promotion & Development of medium, large and mega
Industries in J&K state.
The first step is to write to SIDCO/Industries and Commerce Deptt. giving brief description of
the project, product mix and project parameters indicating the total investment likely turn over,
employment potential and power requirements etc.
Single Window clearance
Apex Projects clearance committee (APCC), a high power clearance committee has been set up
for expeditious clearance of the projects under the Chairmanship of Chief Secretary of the State.
The committee serves as a single window clearance system for the projects for all cases of EOU
and prestigious units. J&K Govt. appoints 'Escort Officer' who facilitates clearance from the
concerned Deptts. without delay.
SIDCO has developed land in its Industrial complexes in the state. Possession of land is handed
over after the entrepreneur completes the necessary formalities and has executed a lease deed for
the land with Regional General Managers of SIDCO.
If industry based on a mineral resource is planned, application for a mining lease must be made
to Director Geology and Mining J&K Govt. Application for power sanction must be made to the
Chief Engineer Power Development Department in Srinagar/Jammu. Adequate steps to control
the effluents must be incorporated in the project as per the pollution control laws of the State. The
necessary forms are also available from SIDCO offices at Jammu, Srinagar, Leh and Delhi.
The following Industrial Policy has been hereby laid down for the years 1998--31.3.2003, for
general information as per government order no. 202-Ind of 1998 dated 27th May 1998.
1 . The Industrial Policy shall cover all the new industrial units which may be established in the
State, except those in respect of which the promoter may have taken effective steps for
implementation of the project and as such may claim to avail of any benefit under the old
Package of Incentives which was in force immediately before announcement of this policy.
2. The Government shall follow an open door policy for the investors from within the State, other
parts of the country as also from abroad, in the last case in accordance with the policies as may be
framed by the Government of India from time to time. In addition to the resources of the
promoter his entrepreneurial skills and experience shall be given due recognition by the
Government. 3. For achieving the goal of rapid industrialization in the State the Government has
adopted the following strategy:Development of Infrastructure
4. The Government owns developed industrial estates in all the districts of the State. In particular,
a number of industrial estates have been developed at and around Jammu city in Jammu region
and around Srinagar city in Kashmir Valley for ready allotment of industrial plots to the
promoters. A Growth Centre at a cost of Rs. 30 crores is under development at Samba, 40 kms
from Jammu on the National Highway (NH 1) towards Punjab. A textile city is proposed to be
developed in Kathua close to the J&K - Punjab border. An Export Promotion Industrial Park
(EPIP) is under execution at Kartholi about 15kms. from Jammu on NH 1.
5. An Industrial Infrastructure Development (IID) Centre, is under execution at Batal Balian, near
Udhampur town, about 70 kms. from Jammu on NH 1, leading to Srinagar.
6. A Growth Centre is being taken up for implementation at Lassipora, Pulwama at a short
distance of about 11 kms from the NH 1, nearly 40 kms from, Srinagar in Kashmir Valley
towards South (leading to, Jammu). An Export Promotion Industrial Park (EPIP) is being set up
near Srinagar airport. An IID Centre shall also be taken up for development near Srinagar city. A
software Technology Park (STP) stands technically cleared for development in the existing
Rangreth electronics complex, just about 6 kms. from Srinagar city.
7. The Government also plans to develop Industrial Estates with speciallsed facilities for
manufacturing/processing of tiles, leather & leather goods, food processing and gems & jewellery
and sports goods.
Policy of land allotment
8. The Government shall allot land on long term lease of 90 years in the Industrial Estates and
developed areas on first come first served basis. In case of large area requirements, land may be
acquired in areas selected by the entrepreneurs and allotted of on lease to the promoter. The
amount of premium is already subsidised. Further capital subsidy of 50% shall be available at the
time of availment of term loan for construction work. The plot allotted in the Industrial Estates
shall be transferable subject to some stipulations and on the condition that the end-use of the land
shall not be changed from industry to any other purpose. Capital Investment Subsidy (CIS) and
Financial Support on Investment
9. Capital Investment Subsidy (CIS) C& 30% subject to a maximum limit of Rs. 30 lakh shall be
available on capital investment. In priority areas of electronics including computronics and
software, food processing including agro-based Industries (excluding conventional
grinding/extraction units), floriculture, handicrafts, leather processing and leather goods, sports
goods, forest-based Industry (excluding saw-mills and Joineries), processing of aromatic plants
and herbs, pharmaceuticals based on herbs, bulk-drugs, silk reeling, weaving, processing, printing
and made-ups, textile goods 'Including spinning, weaving, processing, printing, hosiery and made
ups, cutting and polishing of stones, gems and jewellery, precision engineering and other areas
identified as thrust areas, the upper limit of the total subsidy has been increased to Rs. 45 lakh.
For prestigious units (those with capital investment of minimum Rs. 25 crores) the upper limit of
CIS shall be Rs. 75 lakh in thrust areas and Rs. 60 lakh otherwise. Over and above this amount,
100% subsidy on project feasibility report and I 00% subsidy on testing equipment (with some
monitory ceilings) for maintaining quality standards shall also be available. Purchase of captive
DG sets upto I MW also qualifies for 100% capital subsidy.
10. The J&K State Industrial Development Corporation (SIDCO) shall join the capital investment
of the promoters on a selective basis on joint sector/Assisted sector approach. The financial
assistance is also available under the National Equity Fund Scheme of the Small Industries
Development Bank of India (SIDBI) for units in the SSI sector. Supply of Power
11. The State of J&K is moving towards self-sufficiency in production of electrical energy.
Presently, there are gaps in its peak load requirements and the maximum supply available. But as
a matter of policy, the industry shall be given priority while making quality power supply to the
consumers. The State has a very vast potential for generating hydro electricity, with about
1500OMWs already identified. The State has recently signed MOUs with experienced and
reputed international firms for execution of 450 MWs Baglihar Project, 390 MWs Kishanganga
Project and also for investigation of 280 MWs Uri Phase 11 Project. With the commissioning of
these power projects over the next about 4 years, the State would become self-sufficient in power
generation.
12. All the Industrial Estates shall have dedicated power receiving stations as per their assessed
load. Power connection shall be available at the door step of the promoter. Those needing supply
of energy at HT transmission shall be required to install their own receiving stations.
13. The industrial power-tariff is regulated by the Statute. Presently, the tariff for industry is fairly
attractive.
14. The Industrial units may install their own captive power generation plants. In case of these
power stations, no electricity duty shall be levied by the government. Clearences and procedures
15. For the projects which can be accommodated within the sanctioned policy and do not require
assistance beyond the sanctioned Package of Incentives, a High Level Empowered Committee
has been constituted to give clearances on behalf of all the concerned government departments
and agencies, saving the promoter of the botheration of moving from door to door.
16. Till the State reaches self-sufficiency in power generation, labour/capital intensive units not
needing bulk power supply shall receive top-priority by the High Level Empowered Committee.
Pollution Control & Environment Protection
17. The State accords highest priority to the control over water and air pollution and to
preservation of environment. There are laws governing these subjects, the enforcement of which
is monitored by the J&K State Pollution Control Board which functions as an autonomous
agency, in close co-operation with the Central Agencies. The industrial units shall have to meet
the requirements laid down by the, statutes. The Board shall give,_ necessary clearance on being
satisfied that the required pollution control measures have been proposed to be adopted by the
promoter. SIDCO shall help the promoter in getting these clearances expeditiously.
18. The Government shall take up provision of effluent treatment plants in the industrial estates as
a common facility on selective basis. The Government shall also help the industry in adopting
such measures through the Central Schemes of financial assistance. Thrust Areas
19. The Government have identified certain thrust areas for accord of priority in the matter of
industrial growth. The projects in these areas shall receive priority in the matter of allotment of
land, sanction of power and other clearance from the High Level Empowered Committee as also
in the matter of grant of incentives. For the time being these areas are - electronics including
computronics and software, food processing including agro-based industries (excluding
conventional grinding/ extraction units) floriculture, handicrafts, leather processing and leather
goods, sports goods, forest based industry (excluding saw-mills and joineries), processing of
aromatic plants and herbs, pharmaceuticals based on herbs, bulk drugs, silk reeling, weaving,
processing, printing and made-ups, items of textile goods including spinning weaving,
processing, printing hosiery and made-ups, cutting and polishing of stones, gems and jewellery,
precision engineering and other identified as thrust areas.