New Delhi: In an attempt to wean the youth away from insurgency in troubled Himalayan states, including Jammu and Kashmir and the north-east, the centre is giving final touches to a new industrial policy which will lay emphasis on job creation.
There is a realisation within the establishment that local industry in Kashmir had taken a hit during 2015 floods. The recovery has been slow and something needs to be done in this regard on an urgent basis.
[blurb]The proposed scheme would club together the 2002 special industrial package announced by the then NDA government for Uttarakhand, Himanchal Pradesh and Jammu and Kashmir with Northeast Industrial Industrial Promotion Policy (NIEPP) which provides tax reliefs and incentives for investments in these region.[/blurb]
There has been a strong demand from the North East states, including BJP ruled Assam, to revive NIEPP which lapsed on 31st March this year.
A team of Department of Industrial Policy and Production DIPP and NITI Ayog has already done an assessment in this regard and the policy is being given final touches before its formal announcement.
Tax relief in the proposed scheme may directly be linked to employment generation. Prime Minister is keen that the new policy- both in letter and intent must lay emphasis on job creation in remote and difficult terrains. Earlier, the gradation of the industry for tax benefits was carried on the basis of quantum of investment- that is small, medium and heavy industries.
[quote]"Northeast and Himalayan states are keen to get it extended. DIPP and NITI have done extensive surveys and are giving final shape to the policy to create something meaningful," Commerce Minister Nirmala Sitharaman told CNN News18.[/quote]
The government is especially looking to revive sports and woodwork industry along with food processing units in J&K. The other area where the policy can help draw investments is in setting up of small scale metal units to meet the local demand.