SERVICES

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Package of Incentives

1. Allotment of land/Industrial plots/Sheds & Flats

a. the allotment of land/industrial plots/Sheds & Flats shall be on lease basis for a period of 90 years.

b. the rent charged for the period of lease shall be invested in maintenance of the facilities in the industrial estate. In case of land outside the industrial estates, where no maintenance is required to be done by any Governmental agency, only a nominal lease rent shall be chargeable if the entire expenditure on the cost of land has been incurred by the promoter.

c. Premium rates shall be notified by the Government from time to time and shall not change after land has been allotted to the promoter and a lease deed signed by him after paying the amount of premium.

d. Land allotted on lease shall be transferable subject to some stipulations and also subject to the condition that the transferee shall not -use the land for purposes other than setting up or running another industrial unit in the area with due clearances from the angle of pollution etc.

2. Pre-investment studies/Feasibility reports

a. project profiles shall be prepared by the Directorate of I&C SIDCO and SICOP and shall be available off the shelf to the promoters at nominal price only to cover the cost of printing.

b. the promoter may get a project feasibility report prepared from J&K ITCO, SIDCO, SIST or any other agency as may be approved by the Director I&C from time to time. The entire expenditure incurred on such feasibility reports shall qualify for hundred percent subsidy at the time of execution of the project. The promoter may get a report prepared also from any other specialist agency/ reputed consultants.

c. the detailed feasibility report/detailed project report shall qualify for capital investment subsidy at the rates applicable to other items of capital investment, at the time of release of capital investment subsidy.

d. the cost of obtaining technical know-how from abroad shall be treated as part of the capital investment subject to the clearance of the Central government. In case of the indigenous technology/technical know-how, the same shall also qualify for capital investment subsidy if obtained from any reputed national or regional Organisation. e. provided that if the cost of such technical know-how exceeds 10% of the total capital cost only such amount as is within 10% of the total capital investment shall qualify for working out capital investment subsidy.

3. Power tariff/DG Sets

a. power tariff for the industrial sector is subsidised. The Power Development Department (PDD) shall revise and announce the tariff from time to time, keeping in view the Government policy to encourage the development of industry in the State and the power tariff prevailing in the neighbouring states.

b. I 00% subsidy shall be allowed on new DG Sets of I0 KWs to 1000KWs capacity purchased from reputed/standard companies. The subsidy shall be available to the unit after it has been verified that the diesel set has been actually installed.

c. the amount of subsidy on purchase of DG sets shall be paid only through a bank (or the concerned financing agency, if any) even if the promoter may not have taken any loan for purchase of the DG set.

d subsidy on DG set shall be paid on verification of installation and the remaining 50% shall be paid after expiry of period of one year of installation.

e. the DG set shall not be shifted from the State for a period of ten years counted from the date of installation or to any other unit except with the approval of the Director I&C. If the unit makes any such request to shift the DG set to outside the State, the same shall be considered only in case the unit deposits the entire amount of the subsidy availed of together with interest thereon at the prevailing rate of interest on term loans.

f. government shall allow setting up of captive Thermal Power Generating Stations (subject to Pollution Control measures to be adopted by the promoter) and also Hydel Generating stations. There shall be no electricity duty/state excise on generation of electrical energy through such captive Power Generating Stations for a period of 25 years. The station may be set up by an individual promoter or a group of promoters and the energy thus generated may be shared by them or sold to other consumers.

4. Price preference

a. upto 15% price preference shall be available to the SSI units in all government purchases except in case of items brought on the negative list. The price preference shall also apply in case of any goods purchased by the public sector undertaking/ boards purchased for their own non-commercial use. The price preference shall not cover items purchased by the public sector undertakings and boards who may use such goods as raw material, consumables, packing of their products which are, in turn, meant to be sold on commercial basis either to the government departments or to the private consumers or in the open market.

b. nothing contained in the preceding para shall mean to restrain the Government from purchasing or allowing any of its departments/boards corporations to purchase any consumption/commercial goods from another manufacturing Organisation of Government such as JKI, JKM, SIDCO, Agro Industries Corporation, J&K Handloom Development Corporation, KVIB etc. without inviting tenders or after inviting tenders.

c. In all other cases where the price preference applies, the following procedure shall be followed, in supercession of any other government or departmental instructions, if issued to the contrary, to regulate the purchases of the Government departments: -

• i. every purchase committee of the Government departments shall include a member from the Directorate of the I&C, not below the, rank of a General Manager. Any Committee constituted without any such representative of DIC shall be void ab initio.
• ii. if the goods offered by a registered SSI unit carry quality mark, for example of BIS, FPO etc. or if the goods otherwise are of standard quality, and if the rate quoted by the SSI unit is within 15% of the lowest rate quoted by any other tenderer not being another local registered SSI unit, the Purchase Committee shall decide to place order on such local registered SSI unit, if the local SSI unit has the requisite registered capacity to meet the tendered requirement.
• iii if the rate quoted by the local registered SSI unit is not within 15%, the Committee shall negotiate the rate with the local registered SSI unit and place order on such negotiated rate.
• iv no tender from a local registered SSI unit shall be rejected in contravention aforementioned instructions. In case t Committee faces any difficulty in c these instructions, it will refer the n I&C Department in the secretariat decision in the matter shall be final on the purchase committee/the department,
• v. if a local registered SSI unit is on r, with the DG S&D, DG QA, NSIC particular item needed by a Government department, it shall purchase the item from such SSI unit without inviting tenders.
• vi it would be lawful for a local registered SSI unit to quote through SICOP/SIDCO or to seek supply order through SICOP/SIDCO, or to request/authorise SICOP/SIDCO to represent its case before the purchasing department. In all such cases, SICOP/SIDCO shall be treated at par with the SSI unit or units whose case it may be representing, for all matters connected with the finalisation of the contract, delivery of supplies and the price preference.
• vii no purchasing department shall force or cause any local registered SSI unit to get more quality tests conducted at its own cost if such unit is registered with the BIS, DGS&D, DG QA, etc. for ISI/ISO 9000/FPOmark.
• viii no purchasing department shall tender for purchase of any item with a branded/patented name of any manufacturer or supplier.
• ix. if the department supplies raw material to a local registered SSI unit, directly or through SICOP, such as Steel billets, Wire/Rods, for conversion into the end product required, such as structural steel, crate-wire etc., the conversion rate may be worked out by the concerned administrative department (such as PWD) and a rate contract be sanctioned for conversion only after taking into account the component of price preference.
• x. for any item where the market price for the goods manufactured by mills are controlled by statutory orders, which are not applicable to the SSI units, the price preference may be negotiated on the basis of such statutory rates.

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