New Central Sector Scheme for Industrial Development of Jammu & Kashmir, 2021

This scheme is made up of four incentives: a capital investment incentive, a capital interest subvention, a GST-linked incentive and a working-capital interest subvention. All of them are reimbursements or subventions paid after the unit is set up and registered, not grants paid up front.

What you get

• Capital investment incentive: part of what the unit invests in plant and machinery, or in buildings and durable assets for a service unit, with different rates in Zone A and Zone B blocks
• Capital interest subvention: part of the interest on a term loan, for up to seven consecutive years
• GST-linked incentive: tied to the GST a new unit pays, for up to ten years from the start of commercial production or until the scheme ends, whichever is earlier
• Working-capital interest subvention: for existing units, for up to five consecutive years

Who can apply

• Manufacturing and service units located in Jammu & Kashmir
• New units, and existing units undertaking substantial expansion, within an investment ceiling
• A service-sector unit needs a minimum investment in new buildings and durable assets
• An existing unit can claim substantial expansion only once while the scheme is valid; a new unit registered under the scheme cannot also claim it
• Interest subvention applies only to loans from scheduled commercial banks or financial institutions registered with the Reserve Bank of India

How selection works: The unit is physically verified before the capital investment incentive is paid.

How to apply: Register on the J&K Single Window portal, register the unit under the scheme and file the claim there. The portal's Know Your Incentive tool shows which incentives apply. Its public pages do not say whether new unit registration is still open, and its own documents give different rates and limits for the working-capital subvention, so confirm both with the directorate before planning around them.