 Early Times Report
JAMMU, Jan 27: The Indian Chamber of Commerce (ICC), Jammu Chapter, under the leadership of its Chairman Mr. Rahul Sahai, presented a comprehensive memorandum to the Hon'ble Chief Minister of Jammu & Kashmir, Jenab Omar Abdullah Sahab, during the stakeholders' interaction on Budget 2026-27 held in Jammu. ICC appreciated the revival of the long-standing tradition of pre-Budget consultations and expressed confidence that such participatory governance would help Jammu & Kashmir emerge as a revenue-surplus Union Territory while fostering inclusive growth and economic stability.
A major focus of the submission was the need for a pragmatic and fiscally balanced New Industrial Policy that supports existing industries, encourages expansion, and attracts new investments. For existing industries, ICC proposed introduction of a turnover-linked incentive of 3% for micro and 2% for small and medium enterprises with an annual cap, a 5% working capital subsidy to offset the expiry of NCSS benefits in 2026, continuation of SGST reimbursement under SRO-31 till 2031 and above , 6% interest subsidy on term loans for modernisation and solar installations, and appropriate capital subsidy for adoption of renewable energy. For units undertaking substantial expansion, ICC recommended extending turnover and working capital incentives to the expanded capacity, continuation of SGST refunds for both existing and new activities, 6% interest subsidy on expansion-linked term loans with higher caps, and a simplified capital subsidy of up to 35% on machinery and solar plants with a higher ceiling and clearer definition of eligible components. For new industrial units, ICC suggested turnover incentives, working capital subsidy, long-term SGST refunds linked to plant and machinery with simplified definitions, capital subsidy up to 35%, and interest subsidy on term loans, all aimed at improving project viability and reducing early-stage stress. |
