BUDGET 2022-23 to transform J&K from aspirational to industrialised territory: Govt
‘Rs 555.80 crore allocated under Capital Expenditure for 2022-23 for Industries & Commerce sector’
Jammu: The industrial landscape of the J&K is dominated by MSME and it plays a crucial role in propelling industrial growth and economy in UT as they contribute around 8% to the GSDP and employ the largest number of people in the manufacturing and services sectors.
Approximately 25,000 MSMEs that are operational in the UT contribute almost 60% of the total investment and 90% of total employment in the industrial sector in the UT. It is thus imperative that the MSME sector be further supported through policy interventions.
For Industries and Commerce Sector, an allocation of about Rs 555.80 crore has been made under Capital Expenditure for the year 2022-23 which is Rs.139.84 crore more than the previous year’s budget allocation.
The Government of Jammu & Kashmir is providing an enabling environment for investors to start their ventures in the Union Territory.
The focus of the Jammu & Kashmir Industrial Policy 2021-30 is to attract new investment, creation of employment opportunities for youth, development of backward regions and nurturing of existing industrial units.
Adequate provision has been kept for providing incentives to prospective entrepreneurs as per Jammu & Kashmir Industrial Policy 2021-30. The financial outlay of the proposed scheme is Rs 28,400 crores 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.
The J&K Government is set to hold its first J&K Global Investors Summit with an objective to bring together investors, decision-makers, senior government officials and local business community for a dialogue on concrete investment opportunities in the state. It will be replete with Strategic Sectoral sessions, Round Table Deliberations, one-to-one Business to Business (B2B) and Business to Government (B2G) meetings. The main objective behind the summit is to increase the employment opportunities by accelerating the industrial growth in the newly carved UT.
Under the new budget, Rs.150 crore have been provisioned for development of New Industrial Estates during 2022-23.
Also, a sum of Rs.42.60 crore have been earmarked for development of new Industrial Estates at Budhi Kathua, Mearth Ghatti, Rakh Rara Swankha Morh Samba & Katli Dhaini (Samba) in Jammu division and Khonmoh, Sempora, Chandgam Tahab, Hardoo Dahruna Dooru and Hassan Noor in Kashmir division.
Rs 3.91 crore have been provisional for construction of 7 Common Effluent Treatment Plants (CETPs) in the existing Industrial Estates. Common effluent treatment plants (CETPs) are treatment systems specifically designed for collective treatment of effluent generated from small-scale industrial facilities in an industrial cluster. The main objective of CETP is to reduce the treatment cost for individual units while protecting the environment.
1,354 units under Jammu & Kashmir Rural Employment Generation Programme (J&K REGP) will be established in 2022-23 involving margin money of Rs.25 crore with employment to 8124 persons. REGP is implemented through the Khadi and Village Industries Commission (KVIC) to help eligible entrepreneurs to set up village industry units and thus create employment opportunities in villages including small towns with population upto 20,000.
2,000 Cooperatives/Self Help Groups will be covered under Credit Card Scheme benefiting directly/indirectly 20,000 persons. 7% interest subvention is available for availing loan upto Rs.2 lakh by artisans under Artisan Credit Card (ACC) Scheme. It is a card designed exclusively for artisans, to meet their day to day working capital needs.
The vision for industrialization of Jammu & Kashmir is to transform Jammu & Kashmir from an aspirational to an Industrialized territory and unlock its potential through Convergence (UT and Central) and Collaboration (Industry and Government). The industry policy framework will be driven by the slogan Jammu & Kashmir Tradition, Growth and Transformation. The policy intends to provide a regulatory environment within a supportive framework of Ease of Doing Business. (This is an unedited version of press release issued by DIPR-JK)
