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01/05/2018 06:19am

Extension of DIPP Package of Incentives to J&K MSMEs will boost investment: FOIJ

image Extension of DIPP Package of Incentives to J&K MSMEs will boost investment: FOIJ

Jammu, May 1 (KNN) The industries based in Jammu, especially the micro, small and medium enterprises (MSME) units, have hailed the extension of DIPP Package of Incentives to them.

The incentives will be provided to the industries located in J&K from June 15, 2017 to March 2022 period. It will be provided to new units and existing units under substantial expansion.

“The Incentives was granted to all new industrial units and existing industrial units undertaking substantial expansion in manufacturing sector and services sector including Bio-technology and Hydel Power Generation Units up to 10 MW located in the State of Jammu & Kashmir,” Federation of Industries Jammu (FOIJ) said.

The Package of incentives includes Central Capital Investment Incentive for access to credit (CCIIAC) at the rate of 30% of the investment in Plant and Machinery with an upper limit of Rs 5 Crores, 3% Central Interest Incentive (CII) on working capital credit, Reimbursement of 100% Central Comprehensive Insurance Incentive (CCII).

The members of FOIJ held a meeting to discuss the DIPP Incentives & Package during which they hailed the move. The federation has thanked the state as well as central government for the initiative.

“There is uncertainty in the mind of Micro & Small Scale Sector Units having less than Rs 1.50 crores turnover and not covered in the Central Excise prior to GST, as the Fiscal Incentives granted vide SRO No. 63 for the refund of SGST only, whereas the Units covered under the SRO NO. 521 entitled for the Refund of 58% CGST as per  Central Government,” FOIJ said.

There is fear that package of incentives and 42% refund by the State Government would lead to unhealthy competition in near future amongst MSMEs of the State as these units are not able to get any benefit for the CGST paid, it added.

During the meeting the members pointed that the state government should provide 5% incentives on Sale Value to Micro & Small Scale Units not covered under the Central Excise prior to GST, Units on account of zero rated supplies or on account of inverted duty structure in GST and the Units covered under the Composition Scheme.

FOIJ highlighted that the J&K Government is considering reimbursement of suitable amount in lieu of 2% CST and Freight Subsidy for the Interstate sale. However, no such incentive has been announced by the state government for the units with less than Rs 1.5 crore turnover prior to GST and the Units Covered under the Composition Scheme, FOIJ said.

The meeting was chaired by FOIJ Chairman Lalit Mahajan  and the other senior members participating in the meeting included - Rattan Dogra, Jatinder Aul, Ajit Bawa, Vijay Aggarwal etc. (KNN Bureau)


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