JNM journalist Hardeep Jamwal, Jammu
After the expiry of the ₹28,400 crore New Central Sector Scheme (NCSS) package, which was supposed to give a new direction to industrial development in Jammu and Kashmir, the pace of industrial investment in the state has virtually stalled. Now, investors have high hopes for the crucial Apex Committee meeting to be held in New Delhi on May 30th. This meeting will be chaired by Union Home Minister Amit Shah, and will also be attended by Jammu and Kashmir Lieutenant Governor Manoj Sinha.
In fact, in 2021, the central government announced a special industrial package of ₹28,400 crore to promote industries in Jammu and Kashmir. Under this scheme, investors were provided capital interest subsidies, GST-linked benefits, and other economic incentives. The scheme generated investment proposals worth approximately ₹1.5 lakh crore in the state, while actual investments in four years amounted to approximately ₹10,500 crore.
However, with the expiry of the financial allocation for this scheme in September 2024, the process for new investment slowed. Following this, the Jammu and Kashmir administration sent a proposal to the central government, requesting an increase in the package to ₹75,000 crore. However, the central government has not yet made a final decision on this.
According to sources, the Apex Committee, formed in December 2025, discussed this proposal in detail and submitted its report to the Home Ministry. A final discussion on this report is expected at a meeting on May 30. It is believed that after this meeting, a recommendation for a new, expanded package may be sent to the Finance Ministry.
Thousands of Investment Proposals Still Pending
According to data from the Department of Industry and Commerce, by December 2024, 1,984 industrial units commenced production in Jammu and Kashmir with investments of over ₹9,606 crore, providing employment to over 63,000 people. In the 2024-25 financial year, 334 new units were established with an investment of ₹2,977 crore, providing employment to 8,443 people.
Despite this, 8,306 investment applications are still pending in the state. The total estimated investment amount for these proposals is estimated to exceed ₹1.63 lakh crore. Industry says these investments will only materialize once a new economic package is announced.
Several large companies have withdrawn their investment plans.
After the industrial package benefits ended, several major companies have halted their investment plans in Jammu and Kashmir. Former Sri Lankan cricketer Muttiah Muralitharan’s company had planned to invest ₹1,600 crore to set up an aluminum can manufacturing and bottling plant in Kathua, but surrendered its land due to the lack of 300% GST-linked benefits.
Similarly, Gru Energy, a major solar energy company, had planned to set up a 3.2 GW solar module manufacturing unit in Kathua at a cost of ₹4,500 crore. The company was allotted land and the Lieutenant Governor laid the foundation stone for the project, but the project could not move forward due to unclear package benefits.
Investment plans by companies like Bhilwara Group, Haldiram Group, and Advanced Polyfilms also languished.
Why is the NCSS Scheme Important for Investors?
The New Central Sector Scheme offers several attractive benefits to industries. These include incentives of up to ₹7.5 crore on investments up to ₹50 crore, a 6 percent interest subsidy, and 300 percent GST-linked benefits. This is why the industry considers this scheme the backbone of industrial development in Jammu and Kashmir.
All eyes are now on the May 30th meeting. If the central government approves the new package, it could once again lead to significant industrial investment and employment opportunities in Jammu and Kashmir.
