Jammu & Kashmir…

LET US GROW!!
 Jammu and Kashmir
 The state: Mother of all political battle in the world.

 The state, which received all time high financial aids from the
central government in some economic years.

 The state, which has the economy of 5,39,850 mn INR as of

2006…. But comes in news for all wrong reasons!!
Gory Picture
 WHY Jammu & Kashmir?

 The golden opportunity for the central government and industry

to connect with the ranks and files of J&K population.
 Rich resources of labor- skilled and unskilled
 Proximity to NCR and Punjab, the proven and saturated auto
hubs.
 Example: Pragati - The Indian National Interest Review
 Kartholi, Ompora, Srinagar SEZs Centre for Monitoring
Indian Economy (CMIE) (as on 7th May, 2008)  
 Why Jammu & Kashmir?

 Cargo airports, SIDCO and other industry-oriented govt.

organizations.
 State subsidies and aids.
 Expert group, headed by C. Rangarajan, including dignitaries
like N.R. Narayana Murthy, Tarun Das (CII mentor), Shakeel
Qalander and P. Nanda Kumar on J&K economy advisory and
job plan.
People Of JAMMU

 Jammu is has a Hindu majority population - 65% of Jammu's

population practices Hinduism
 30% practices Islam 
 Most of the remainder are Sikhs.
 Most of Jammu's Hindus are Dogras, KashmiriPandits, migrants
from Kotli and Mirpur and Punjabi Hindus
 Cheaper & Easy availablity of skilled as well as unskilled
workers(Labors).
Major Policies
 100% Excise exemption for 10 years.
 5 Years of 100% Income Tax Holiday.
 Capital Investment Subsidy upto Rs. 30.00 lakhs and Rs. 45.00 lakhs for thrust area
project.
 Land on 90 years lease.
 Providing improved infrastructure and support services, with emphasis on regular
and uninterrupted power supply.
 Govt. of India Grant upto Rs. 75 lakhs @ 33.33% for Food Processing Industries.
 Upto Rs. 4.00 Crores subsidy on Agro-based Projects under mini mission-IV.
 A host of incentives on capital goods, term loan, transportation, working capital,
branding etc.
 Single Window Clearance for Pre-project approvals of Land, Power and
Pollution.
 The Insurance Premium reimbursement to the extent of hundred percent on capital
investment for a period of 10 yrs to all new & existing units.
Industries
J&K SIDCO - Existing Industry  Name of the Industrial Group Investment (Rs. In Lacs)  

 Chenab Textile Mills 3500.00  

 Dabur India Limited 1448.00  
 Godrej Agrovet 257.00  
 Godrej Saralee 459.36  
 Berger Paints India Ltd. 3200.00 
  Coca Cola 6000.00  
 Flex Industries 9000.00  
 Neel Kamal Industrial Crafts 7150.00  
 Euro Bond India Pvt. Ltd. 2931.00  
 Reckitt Bankiser 4211.06  
 Cadila Pharmaceuticals 3000.00  
 Jai Beverages (PEPSI Group) 8100.00  
 Jindal Photo Limited 2184.00  
 Maral Overseas (Bhilwara Group) 3500.00  
 Ind-Swift Laboratories 1420.00  
 Medley Pharmaceuticals 3650.00  
 Vivek Pharmaceuticals 1691.00  
 Surya Health Care Limited 8090.00 
  Sun Pharma 2000.00 
  Ultimate Flexi Pack 6000.00  
 Bharat Box 2000.00  Graeur  
 Security
 State industry security
 State Police
 CRPF
 Central Industrial Security Force
 Army
 J & K is given special status in the constitution of India and in
53rd amendment (revised in 1991) the industries in J & K are
given special security.
Economy of Jammu and Kashmir
 The Jammu and Kashmir Economy depends mostly on
traditional form of occupation.

 Farming, Animal husbandry and Horticulture forms

the backbone of the economy of the state.

 The salubrious weather and fertile land of Jammu and

Kashmir produces several crops that help the state to
earn a large amount of revenue.
 The government is stressing on the hard-core industries
keeping in mind the positive effects of industrialization.
 The following are the areas, which have been given
preference to promote Small Scale Industries in Jammu and
Kashmir are:
1. Priority sector lending by Banks and Financial Institutions.
2. Excise Exemption or concessions
3. Reservation of items for exclusive production
4. Package of Incentives
5. Emphasis now on promotion of quality, technology and
efficiency
6. Price & Purchase preference
7. Infrastructure development
 The Associated Chambers of Commerce and Industry of
India (ASSOCHAM) has identified several industrial sectors
which can attract investment in the state, and accordingly, it
is working with the union and the state government to set up
industrial parks and special economic zones
 In the fiscal year 2005–06, exports from the state amounted
to Rs. 1,150 crore
 In an attempt to improve the infrastructure in the state, the
Indian government has commenced work on the ambitious
Kashmir Railway project which is being constructed by
Konkan Railway Corporation and IRCON at a cost of more
than US$2.5 billion
 J & K - SIDCO
 J & K SIDCO (Jammu & Kashmir State
Industrial Development Corporation) is the nodal
agency for promotion & development of medium
and large scale Industries in the state.

 Jammu & Kashmir offers boundless investment

opportunities to the prospective Investors.
Objectives -  Industrial Policy 2004
 To achieve sustainable industrial development in all regions
for increasing the rate of growth, value of output,
employment, income and overall economic development of
the State
 To strive towards balanced economic and social
development in all regions by promoting industrialization
particularly of the industrially backwards areas.
 To encourage and sustain the cottage and tiny industrial
sector with low investment.
 To revive potentially viable sick industrial units
 To promote the growth of thrust and export-oriented
industries and encourage high-tech and knowledgeable
based industries.
 Package of Incentive - Industrial
Policy 2004  
 Construction of a Captive Tube-well : 75% subsidy allowed, for a prestigious
unit in any of the thrust area, max. amt. of Rs. 22.50 lakhs, over CIS.
 Modernisation of Existing Units : Subject to a limit of Rs. 30 lakhs.
 Brand Promotion : Rs. 20 lakhs-1st Yr., Rs. 15 lakhs-2nd Yr., Rs. 10 lakhs-3rd
Yr.
 Pre-Investment Studies/Feasibility Reports : Rs. 2.00 lakhs for preparation of
project report from approved consultants.
 DG Sets : 100% subsidy on new DG Sets ranging from 10 KW to 100 KW.
 Mini/Micro or Captive Power Units : No electricity duty/state excise till 25
Years.
 Price / Purchase Preference : Upto 15% on Government Purchase from SSIs.
 Stamp Duty : Mortgage deeds in f/o Fls. exempted from the payment of stamp
duty.
 Exemption of Court Fee : For registration of documents relating to lease of
land.
 Toll Taxes : No additional toll tax on the raw materials, fuels consumable and
finished goods.
 VAT : Small, medium & large scale industrial units shall be provided relief
under VAT till March 2010.
 Central Sales Tax : Exempted on sale of finished goods outside the state.
 Interest Subsidy : 3% subsidy shall be payable on the working capital
facilities.
 Testing Equipment : 100% Capital subsidy, max amt. of Rs. 25 lakhs.
 Air Freight Subsidy : On finish goods and raw materials for any destination @
50% subject to a maximum of Rs. 5 lakhs per year per unit.
 Pollution Control Equipment : 30% subsidy, max. amt. of Rs. 20 lakhs.
 Interest Subsidy for Technocrats : 5% interest subsidy on term loan.
 Research and Development (R&D) : 50% subsidy, max. amt. of Rs. 5 lakhs.
 Upto Rs. 4.00 Crores subsidy on Agro-based Projects under mini mission-IV.
 Human Resource Development : Max. of Rs. 5 lakhs for male & Rs. 7.5 lakhs
for women trainees on programs for skill development leading to employment.
 Transport facilities : Providing cargo Airport services along with low low cost
fares.
 Difficult Area Subsidy : Govt. of India scheme for grant upto Rs. 75.00 lakhs
@ 33.33% for Food Processing Projects
 Proposal for Sez’s in J & K
 J & K government has proposed to create Special
industrial zones (SIZ) along with special economic
zones (SEZ).
 We have forwarded a proposal to the Centre to create
SEZ with the initial funding of Rs 200 crores .
 These SEZ’s will have neither tax concessions nor
export obligations and they’ll be free to sell the goods
in the country.
 Also the Central budget 2007-08 has extended Income
tax as well as Central Excise exemption for investments
till 2012.
 Why overlooking J&K will cost us
dearly??
 Rapid development of Mirpur, and Muzaffarabad of ‘Azad
Kashmir’

 China’s development agenda in Tibet (Xizang)

 People in valley are apprehensive of development plans of GoI

for J&K and this is the best platform to thrust the confidance.
Why overlooking J&K will cost us
dearly??
 Entrepreneurs are simply those who understand that there
is little difference between obstacle and opportunity and
are able to turn both to their advantage.
-Niccolo Machiavelli.
 Land, People, Economy, Global Image, Trust….and the
value system of India.
(FYI : keep this two slide as the last and I’l wrap up with
this)
THANK YOU