JNM Correspondent Hardeep Jamwal, Jammu
Following the exhaustion of the ₹28,400 crore New Central Sector Scheme (NCSS)—a package designed to give a new direction to industrial development in Jammu and Kashmir—the pace of industrial investment in the region has nearly come to a standstill. Now, investors have pinned their hopes on a crucial meeting of the Apex Committee scheduled to be held in New Delhi on May 30. This meeting will be presided over by Union Home Minister Amit Shah and will also be attended by the Lieutenant Governor of Jammu and Kashmir, Manoj Sinha.
Notably, in 2021, the Central Government had announced a special industrial package worth ₹28,400 crore to boost industries in Jammu and Kashmir. Under this scheme, investors were provided with capital interest subsidies, GST-linked benefits, and various other economic incentives. Thanks to this scheme, investment proposals worth approximately ₹1.5 lakh crore emerged in the region, while actual investment amounting to roughly ₹10,500 crore materialized over a period of four years.
However, with the financial allocation for this scheme running out in September 2024, the process of attracting new investments also began to slow down. Subsequently, the Jammu and Kashmir administration submitted a proposal to the Central Government, requesting that the package be expanded to ₹75,000 crore. To date, however, the Central Government has not yet taken a final decision on this matter.
According to sources, the Apex Committee—constituted in December 2025—held detailed discussions on this proposal and submitted its report to the Ministry of Home Affairs. Now, a final discussion regarding this report is expected to take place during the meeting on May 30. It is anticipated that, following the meeting, a recommendation for the new, expanded package may be forwarded to the Ministry of Finance.
Thousands of Investment Proposals Still Pending
According to data from the Department of Industries and Commerce, by December 2024, 1,984 industrial units in Jammu and Kashmir had commenced production—representing an investment of over ₹9,606 crore—thereby generating employment for more than 63,000 people. Meanwhile, during the financial year 2024-25, 334 new units were established with an investment of ₹2,977 crore, generating employment for 8,443 people.
Despite this, 8,306 investment applications remain pending in the region. The total estimated investment value of these proposals is reported to exceed ₹1.63 lakh crore. Industry stakeholders assert that these investments will only materialize on the ground once a new economic package is announced.
Several Major Companies Back Out
Following the expiration of benefits under the industrial package, several major companies halted their investment plans in Jammu and Kashmir. The company owned by former Sri Lankan cricketer Muttiah Muralitharan had planned to invest ₹1,600 crore to set up an aluminum can manufacturing and bottling plant in Kathua; however, due to the unavailability of the 300% GST-linked incentive, the company surrendered its allotted land.
Similarly, Gru Energy—a major player in the solar energy sector—had planned to establish a 3.2 GW solar module manufacturing unit in Kathua at a cost of ₹4,500 crore. Land was duly allotted to the company, and the Lieutenant Governor even laid the foundation stone for the project; however, the project failed to progress further because the benefits under the industrial package remained unclear.
Investment plans by companies such as the Bhilwara Group, Haldiram Group, and Advance Polyfilms have also been left in limbo.
Why the NCSS Scheme is Crucial for Investors
Under the New Central Sector Scheme (NCSS), industries are offered a range of attractive incentives. These include an incentive of up to ₹7.5 crore on investments up to ₹50 crore, a 6% interest subvention, and 300% GST-linked benefits. This is precisely why the industry views this scheme as the backbone of industrial development in Jammu and Kashmir.
Now, all eyes are fixed on the meeting scheduled for May 30. If the Central Government approves a new package, it could once again trigger a surge in large-scale industrial investment and employment opportunities in Jammu and Kashmir.
