After abrogation of Article 370, the Jammu and Kashmir is likely to receive a first investment of Rs 15000 crores in private sector to boost the economy and generate employment for local youth.
As per the reports, 41 companies have submitted their Expression of Interest (EoIs) in investing in Jammu and Kashmir after Union government abrogated article 370 and 35 A and downsized the erstwhile state to Union Territory. The article 370 was barring outside investment and restricting non locals to purchase the immovable property.
The investors have shown interest in, information technology, infrastructure, renewable energy, manufacturing, hospitality, defence, skills education and tourism, reports The New Indian Express.
Some of the companies planning to invest in Jammu and Kashmir include Jackson Group, Indo American Synergy, HCH Pvt Ltd and Atmiya Fieldcon Pvt among a few.
However, the companies are demanding many more concessions in addition of already awarded by the state government to invest in the region.
He said that the companies are seeking a tax holiday of at least 10-15 years in return for their investment.
The government is, however yet decide whether the land would be sold to the companies or provided on lease basis.
Prior to August 5 major decision, any company desiring to invest was only allowed to acquire the land on lease basis. In the new reorganization act of 2019, anyone can buy or sell the immovable property in Jammu and Kashmir and Ladakh Union territories.
To meet the land requirements of the desiring investors in region, the government is identifying and planning to set up at least 12 new industrial estates in Jammu and Kashmir. The estates are to be set up after acquiring the SDA, Custodian, and Kachra (grazing) land in a newly carved UT.
To tackle the local unemployment, the companies are working on an arrangement of employing 80 per cent local staff and 20 per cent from outside.
