For the first time incentives extended to services sector including hotels
JAMMU, JAN 17: Finance Minister, Dr Haseeb A Drabu today thanked the Central Government for extending major incentives under Industrial Development Scheme to Jammu and Kashmir and also bringing the state’s Services Sector under its ambit.
“The extension of landmark Industrial Development Scheme to J&K and extending its benefits to the Services Sector will give a huge boost to the investment in the State,” Dr Drabu said in the Upper House while replying to the discussion on the Budget 2018-19.
He said it is for the first time that the state’s services sector has been under the ambit of Industrial Development Scheme. “Under the scheme, Central Capital Investment subsidy of 30% would be provided for plant and machinery including buildings for hotels,” Dr Drabu said.
He said under the scheme 3% interest subsidy for 5 years and 100 percent insurance subsidy will be also available to the industry and the services sector.
“All new industrial units in manufacturing and services sector operational in the state will be eligible for various benefits under this scheme”, Dr Drabu said and added that the scheme will have two key components: 100 percent insurance cover and considering buildings of the hotels as plant machinery thus enabling them to 30 percent capital subsidy. “This will be the first post-GST scheme that will take care of the new realities in public finances,” he said.
In another important decision, the Finance Minister also announced provision of Rs 5 crore for interest subvention for business start-up ventures by SC/ST entrepreneurs.