Lok Sabha Question No. 2993 (UNSTARRED), answered on 2016-12-05
Subject: Promotion of Industries in Border States
Ministry: COMMERCE AND INDUSTRY
Asked by: RANJIT SINGH  BRAHMPURA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 2993. TO BE ANSWERED ON MONDAY, THE 5 TH  DECEMBER, 2016.

## PROMOTION OF INDUSTRIES IN BORDER STATES

## 2993.  SHRI RANJIT SINGH BRAHMPURA:

## Will the Minister of COMMERCE AND INDUSTRY वाणिज् यवव द्यग ं ्री

be pleased to state:

- (a) whether  the  Government  proposes  to  extend  certain  fiscal  and  monitory benefits to entrepreneurs interested to set up their units in the bordering areas of Punjab, Rajasthan, Jammu & Kashmir and Himachal Pradesh;
- (b) if so, the details thereof, State-wise;
- (c) whether the Government has made an analysis for total number of industries, which have moved their base from normal category States to special category States due to such benefits extended; and
- (d) if so, the details thereof?

## ANSWER

## वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE)

## OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a) & (b) : No,  Madam.    There  is  no  proposal  to  extend  certain  fiscal  and monetary benefits to entrepreneurs  interested  to  set  up  their  units  in the  bordering  areas  of  Punjab,  Rajasthan,  Jammu  &  Kashmir  and Himachal Pradesh.  However, to promote industrialization in industrially backward areas of the country, financial support has been extended to industrial  units  in  the  Special  Category  States  of  Himachal  Pradesh, Uttarakhand and Jammu & Kashmir.  Details of the nature of industrial incentives being provided in the aforesaid States is annexed.
- (c) & (d): Establishment of industries is the responsibility of the respective State Governments.    DIPP  has  not  made  any  analysis  of  total  number  of industries which have moved their base from normal category States to special category States due to provision of such benefits.

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## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO PSRTS (a) & (b) OF THE LOK SABHA UNSTARRED QUESTION NO. 2993 FOR ANSWER ON 5 TH  DECEMBER, 2016.

## Details of incentives under Special Package Scheme for the States of Jammu & Kashmir, Himachal Pradesh & Uttarakhand

## Jammu & Kashmir

New  Industrial  policy  and  other  concessions  for  the  State  of  J&K  were introduced by the DIPP on 14 th June, 2002 for a period of ten years. The package of incentives for the State of J&K   expired on14th June, 2012. However, the package has been extended for a further period of five years w.e.f. 15.06.2012 to 14.06.2017 with certain modifications. The new package provides the following incentives:-

1. Central Capital Investment Subsidy Scheme :  All  new  industrial  units  and existing  industrial  units  on  their  substantial  expansion,  would  be  eligible  for Capital Investment Subsidy @ 15% of the investment of Plant & Machinery, subject to a ceiling of Rs. 30 lakh. Micro, Small and Medium enterprises would be eligible for Capital Investment Subsidy of 30% of the investment of plant & machinery,  subject  to  ceiling  of  Rs.  3.00  crore  and  Rs.  1.50  crore  for manufacturing and service sector respectively.
2. Central Interest Subsidy Scheme : An interest subsidy of 3% on the average of daily working capital loan would be provided to all new industrial units for a period of five years from the date of  commencement  of  commercial production.
3. Central Comprehensive Insurance Subsidy Scheme : Insurance subsidy to the extent of 100% would be admissible during the extended package to all new units and to the existing units on substantial expansion for a period of five years from the date of commencement of commercial production.

## Himachal Pradesh and Uttarakhand

New  Industrial  policy  and  other  concessions  for  the  States  of  Himachal Pradesh and  Uttarakhand were introduced by the DIPP on 7 th January, 2003 for a period of ten years  from 7.1.2003 to 6.1.2013. The scheme expired on 06.01.2013. However,  Package  has  been  extended  during  the  12 th Plan  period  for  a  further period w.e.f. 07.01.2013 to 31.03.2017. The new package includes the following:-

Central Capital Investment Subsidy Scheme 2013: All new industrial units and existing industrial units on their substantial expansion, would be eligible for Capital Investment Subsidy @ 15% of the investment of Plant & Machinery subject to a ceiling of Rs. 30 lakh. Micro, Small and Medium enterprises would be eligible for Capital Investment Subsidy of 15% of the investment in plant & machinery subject to a ceiling of Rs. 50 lakh.

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