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Core Purpose

Notification by the Department for Promotion of Industry and Internal Trade amending the New Central Sector Scheme for Industrial Development of the Union Territory of Jammu & Kashmir, 2021, revising the definitions and incentive terms for Commencement of Commercial Production, Capital Investment Incentive and Capital Interest Subvention.

Detailed Summary

The Ministry of Commerce and Industry, Department for Promotion of Industry and Internal Trade, by notification F. No. 1(1)/2020-SSS dated 29th September 2023, amends its earlier Notification No. 1(1)/2020-SSS dated 19.02.2021 titled "New Central Sector Scheme for Industrial Development of Union Territory of Jammu & Kashmir": Clause 6.3 (Commencement of Commercial Production) is replaced to define it as the start of finished-goods manufacturing on a commercial basis after completion of all unit phases, preceded by trial production and installation of complete plant and machinery, with units permitted to sell/supply goods produced in intermediate phases; the commencement date after completion of all phases must not be later than 3 years from the date of registration grant per clause 6.8(a), and incentive eligibility is tied to the amended definition; Clause 10.1 (Capital Investment Incentive, CII) is replaced, making new units and existing units undertaking substantial expansion with investment up to Rs. 50.00 crore in Plant & Machinery/Building eligible in Zone A and Zone B (with healthcare-sector units eligible irrespective of investment cap), granting CII at 30% of investment (maximum Rs. 5.00 crore, or Rs. 15.00 crore for healthcare units) in Zone A, and at 50% of investment (maximum Rs. 7.50 crore, or Rs. 15.00 crore for healthcare units) in Zone B, with service-sector units required to invest at least Rs. 1.00 crore; Clause 10.2(b) is replaced to provide Capital Interest Subvention at an annual interest rate of 6% for a maximum of 7 consecutive years from disbursement of the sanctioned loan, applicable to term loans disbursed on or after 01-04-2019, with disbursement of the incentive beginning only after commencement of commercial production; the notification is signed by Balamurugan D, Joint Secretary.

Full Text

EXTRAORDINARY PART I—Section 1 PUBLISHED BY AUTHORITY No. 248] NEW DELHI, SATURDAY , SEPTEMBER 30, 2023/ASVINA 8, 1945 CG-DL-E-04102023-249131 MINISTRY OF COMME RCE AND INDUSTRY (Department for Promotion of Industry and Internal Trade ) NOTIFICATION New Delhi , 29th September , 2023 F. No . 1(1)/2020 -SSS.—The Government of India hereby makes the following amendments to the Notification No. 1(1)/2020 -SSS dated 19.02.20 21, title d New Central Sector Scheme for Industrial Development of Union Territory of Jammu & Kashmir. A. clause 6.3. Commencement of Commercial Production shall be replaced with the following: i. Commencement of Commercial Production: means starting of m anufacturing of finished goods on a commercial basis after completion of all the phases of the unit, which is preceded by trial production of every or all phases and installation of complete plant and machinery for manufacturing of finished products in commercial quantity and all raw materials, consumables, etc. required for manufacturing are available. ii. The unit shall be allowed to sell or supply* the finished goods produced/manufactured in the intermediate phases. The date of commencement of commercial pro duction after the completion of all phases shall not be later than 3 years from the date of grant of registration as per the requirements under clause 6.8(a) of the New Central Sector Scheme 2021. Commencement of commercial production shall be counted from the date on which the entire project gets grounded (within 3 years of registration). (*Supply means: supply of goods or services as defined in GST Act, 2017) iii. The applicant will be eligible for claiming incentives only after the date of commencement of c ommercial production as per the amended definition above iv. The amended definition of “Commencement of Commercial Production” will apply to all the scheme's provisions/components/clauses. For instance - The commencement date of commercial pro duction after the completion of all phases (as per the amended definition) shall be considered to decide the claim's eligibility. B. The clause 10.1. Capital Investment Incentive (CII) shall be replaced with the following: 10.1. Capital Investment Incentive (CII) (a) Eligibility: (i) The following units will be eligible to avail of this incentive a. New units with an investment of not more than Rs.50.00 ( Fifty ) crore in Plant & Machinery (for the manufacturing sector) or Building and all other durable physical assets (for the service sector) will be eligible to avail of this incentive in both Zone A and Zone B. b. Existing units undertaking substantial expansion with an investment of not more than Rs.50.00 ( Fifty ) crore in Plant & Machinery (for the manufacturing sector) or Building and all other durable physical assets (for the service sector) will be eligible to avail benefit under this incentive in bo th Zone A and Zone B. c. The health care sector unit will be eligible to avail this incentive -. New unit and Existing units -undertaking substantial expansion of healthcare sector will be eligible to avail benefit under this incentive in both Zone A and Zone B, irrespective to their actual investment (no upper cap of investment) (ii) Subject to provision in Clause 6.8(c), a unit will be eligibl e for this incentive only if it installs a new plant and machinery (for the manufacturing sector) or constructs new building and other durable physical assets (for the service sector), where purchases have been made based on Arm’s Length Pricing,. (iii) A servic e sector unit will be eligible for this incentive only if it makes an investment of not less than Rs. 1.00 crore in the new building and other durable physical assets (b) (i) All eligible units located in Zone A category blocks in the UT of Jammu & Kashm ir will be provided Capital Investment Incentive @30% of the investment made in plant and machinery (for manufacturing sector), or for construction of building and installation of other durable physical assets (for services sector) with maximum limit of Rs . 5.00 cror e. (ii) All eligible units of healthcare sector located in Zone A category blocks in the UT of Jammu & Kashmir will be provided Capital Investment Incentive @30% of the investment made in construction of building and installation of other du rable phys ical assets with maximum limit of Rs. 15.00 crore. (c) (i) All eligible units located in Zone B category blocks in the UT of Jammu & Kashmir will be provided Capital Investment Incentive @50% of the investment made in plant and machinery (for manufacturing), or for construction of building and installation of other durable physical assets (for services sector) with maximum limit of Rs.7 .50 crore. (ii) All eligible units of healthcare sector located in Zone B category blocks in the UT of Jammu & Kashmir will be provided Capital Investment Incentive @50% of the investment made in construction of building and installation of other dura ble physical assets with maximum limit of Rs. 15.00 crore. (d) An existing unit can avail this benefit for substa ntial expansion only once during the validity period of the scheme. (e) A new unit registered under the scheme will not be eligible to avail the benefit under substantial expansion. (f) Physical verification of the units is mandatory before availing th is incentive. However, under special circumstances, on recommendations by UT, with due justification, Steering Committee may consider electronic modes, or any other method as deemed appropriate in lieu of physical verification. (g) Detailed procedure for registration and availing this incentive shall be laid down in the guidelines. C. The clause 10.2 (b) shall be replaced with the following: All eligible units can avail of Capital Interest Subvention at the annual rate of interest of 6% for a maximum of 7 consecutive years from any date after the date of disbursement of sanctioned loan amount availed for procurem ent of ‘P&M in case of Manufacturing units’ and ‘building and other durable physical assets’ in case of Service units. The incentive shall be provi ded on a term loan disbursed on or after 01 -04-2019 against the eligible investment. However, disbursement of eligible amounts under this incentive shall begin only after the commencement of commercial production. BALAMURUGAN D , Jt. Secy. Uploaded by Dte. of Printing at Governm ent of India Press, Ring Road, Mayapuri, New Delhi -110064 and Published by the Controller of Publications, Delhi -110054.

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