lR;es o t;rs

Government of Indi a
Mi ni st ry of MSME




AnnuAl Progress rePort
2013-14












MSME-Devel opment Insti tute

Jammu & Kashmir


1

CHAPTER - I

1.1 GEOGRAPHICAL BRIEF OF THE STATE

Jammu & Kashmir State is one of the oldest States of Indian Union. The total area of
J&K State is 2,22,236 Sq.Kms which includes 37,555 Sq.Kms under illegal occupation of
China in Leh and 78,115 Sq.Kms under occupation of Pakistan and 5,180 Sq.Kms
illegally handed over by Pakistan to China. The state is surrounded by No. of foreign
countries i.e. Pakistan in the West, Afghanistan in the Northwest and China in the
Northeast. It is located between 32
0
To 72
0
Longitudes and 72
0 to
80
0
Latitude.
Geographically the State of J&K has been divided into three regions viz: Jammu,
Kashmir & Ladakh. Ladakh is situated in the extreme Northeast surrounded by Naga
Parbhat and Korkaram Range (K
2
), it also touches the Godwin Austin Peak, the worlds
second highest peak. The Jammu region falls in peer panchal range which is situated
2000 mtrs. above the sea level. Kashmir region lies totally within the Himalayas
surrounded by high hills of peer panchal range (K
2
) and Karakorum range. It is
interesting to note that the culture, climate and convention vary from region to region.
The J&K State has got its importance in many respects. The State is endowed with rich
agricultural and mineral resources. The famous Basmati Rice is grown in a large area of
the State. It has a very sound horticultural background. The important fruit crops grown
in the state are apples, Cherries, pomegranate, peaches walnut etc, which is being
exported to all over the world, thereby earning a good amount of foreign exchange.
Besides scenic beauty, J&K is also known as a famous pilgrimage center i.e Shri Mata
Vaishno Devi in Jammu province, Amarnath in Srinagar province and old Buddhist
Monasteries/Gompas in Leh. It is worth mentioning that the State of J&K is one of the
best tourist centers of India and is known as Paradise on Earth. It attracts a large
number of tourists round the year. The State with its summer and Winter Capitals at
Srinagar and Jammu respectively consists of 22 districts (10 in Kashmir Valley, 10 in
2

Jammu Division and 02 in Ladakh region). Out of the 22 districts of the State, Leh
district stands first in area wise with a total of 82,665 Sq.Kms followed by Kargil, Doda,
Baramulla and Udhampur. It has four geographical zones of (i) Sub-mountain and semi-
mountain plain know as kandi or dry belt, (ii) the Shivalik ranges, (iii) the high mountain
zone constitution the Kashmir valley, Pir Panchal range and its off-shoots including
Doda, Poonch and Rajouri districts and part of Kathua and Udhampur districts and (iv)
the middle run of the Indus river comprising Leh and Kargil. The important rivers of the
State are the river Indus, Jehlum, Chenab, Tawi, Ravi, Sheok and Zanasskar. Besides
these major rivers, there are a few small rivers and streams running through the state.
These rivers facilitate irrigation to large part of the State

1.2 HISTORICAL BACKGROUND OF THE STATE

The state of Jammu and Kashmir which had earlier been under Hindu rulers and Muslim Sultans
became part of the Mughal Empire under Akbar. After a period of Afghan rule from 1756, it
was annexed to the Sikh kingdom of Punjab in 1819. In 1846 Ranjit Singh handed over the
territory of Jammu to Maharaja Gulab Singh. After the decisive battle of Sabroon in 1846,
Kashmir also was handed over to Maharaja Gulab Singh under the Treaty of Amritsar. British
supremacy was recognized until the Indian Independence Act 1947.
When all the states decided on accession to India or Pakistan, Kashmir asked for standstill
agreements with both. In the meantime the state became the subject of an armed attack from
Pakistan and Maharaja acceded to India on 26th October, 1947 by signing the instruments of
accession. India approached the then UN in January 1949. Another round of war between the
two countries in 1965 was followed by the Tashkent Declaration in January 1966. Following the
liberation movement in the former eastern wing of Pakistan, Pakistan attacked India in
December, 1971. It was followed by the Shimla Agreement in July, 1972. A new line of control
was delineated bilaterally to replace the ceasefire line between the two countries in Jammu and
Kashmir. Kashmir has been in the centre of contention between India and Pakistan ever since.
Separatist movements have torn the peaceful fabric of the state for over a decade.Jammu and
Kashmir's economy is predominantly dependent on agriculture and allied activities.
[
The Kashmir
valley is also known for its sericulture and cold-water fisheries. Wood from Kashmir is used to
make high-quality cricket bats, popularly known as Kashmir Willow. Kashmiri saffron is also very
famous and brings the state a handsome amount of foreign exchange. Agricultural exports from
Jammu and Kashmir include apples, barley, cherries, corn, millet, oranges, rice, peaches, pears,
saffron, sorghum, vegetables, and wheat, while manufactured exports include handicrafts, rugs,
and shawls.

1.3 ECONOMIC PRESPECTIVE
Economic development of any region can only be achieved through rapid
industrialization. Industrial development itself depends largely upon number of factors.
The availability of raw material, skilled manpower, adequate infrastructure, transport,
Industrial Estates are the good sign for industrial development of the any area. The State
is rich in resources like horticulture, forest, some part of the State is under good
agriculture crops. Even with all of this the state has not been in position to generate
sufficient revenue from its own resources and has been facing serious financial
problems. The development process in the state has also largely been suffered due to
under utilization of the available resources.
The state government has four sources of revenue, namely, tax revenue, non-tax
revenue, grants-in-aid from Government of India and states share of union taxes and
duties. The tax revenue plays a vital role in the budgeting exercise of the state. Under
tax revenue the prominent sources in order of higher revenue collections include sales
tax, excise, tax on goods, tax on vehicles, stamp duty, electricity duty, tax on
passengers and land revenue. Besides, miscellaneous taxes in the shape of tax on
3

professions, trade, selling and employment, entertainment duty and advertisement, road
tax and tourist tax are charged. The non-tax revenue is largely dependent on collection
of fee from the consumers on account of supply of goods and services like electric
energy, drinking water, irrigation facilities, exploitation of forest wealth, charges of health
services, mining, etc. The grant-in-aid from the central government and the states share
of union taxes and duties are the other main sources of income of the state .

Tourism in J&K plays a vital role in enhancement of the economic prospective in the
State. Every year a large number of tourist are visiting to J&K to see the beauties of
Kashmir valley and other part of the State. The State is earning a huge amounts from
this source .
Horticulture plays a vital role in the economic development of the state. With an annual
turnover of over Rs. 300 crore, apart from foreign exchange of over Rs. 80 crore, this
sector is the biggest source of income in the states economy. The region of Kashmir is
known for its horticulture industry

and is the wealthiest region in the state. Horticultural
produce from the state includes apples, apricots, cherries, pears, plums, almonds and
walnut. The Doda district has deposits of high-grade sapphire Though small, the
manufacturing and services sector is growing rapidly, especially in the Jammu division.
However, industrial development in the state faces several major constraints
including extreme mountainous landscape and power shortage.
The Government of India has been keen to economically integrate Jammu and Kashmir
with the rest of India. The state is one of the largest recipients of grants from New
Delhi, totaling $ 812 million per year. It also has a mere 4% incidence of poverty, one
of the lowest in the country. In an attempt to improve the infrastructure in the state, the
Indian government has commenced work on the ambitious Kashmir Railway project
which is being constructed by Konkan Railway Corporation and IRCON at a cost of more
than US$2.5 billion The Vaishno Devi yatra alone contributes Rs. 475 crore to the local
economy annually
1.3.1 Growth and Composition of Expenditure

It depicts the trends in total expenditure both in terms of economic classification and
expenditure by activities.
Chart - 1 : Total Expenditure : Trends and Composition
32000

28000
28645

24603

24000

22680


21607



20000
17053
18467 21432

16000

15944
15324

13114

17558


12189 12047



14771

12000 10614


11666
11734

8000
9781
6234
6064 5899

4964

3717





2456


Fig Trends in expenditure over years
4000
44
38
42 49 72
66

0



2006-07 2007-08 2008-09 2009-10 2010-11 2011-12



Lo ans and A dvances

C apital Expenditure




N o n P lan R evenue Expenditure

R evenue Expenditure



T o tal Expenditure




4

The total expenditure of the State increased from ` 13,114 crore in 2006-07 to ` 28645
crore in 2011-12 (118 per cent). The capital and revenue expenditure components have
increased by 140 per cent, and 114% respectively during the period 2006-12.
1.4.1 KEY INDICATORS OF THE STATE

Area in Sq. Kms. 222236*
Agriculture Land 2416 (000ha)
Forest Land 658 (000ha)
Land use to non-Agri. uses 293 (000ha)
Barren & un-cultivated land 298 (000ha)
Total food grain (2007-08) 15707 (000 qtls)
No. of Districts 22
No. of Tehsils 82
No. of C.D. Blocks 142
No. of Panchayats (provisional) 4136
No. of Villages 6652
No. of Urban Areas 68
No. of Urban Agglomeration 7
Population -2001 (Census) Total Male Female
Total 10143700 5360926 4782774
Rural 7627062 3977652 3649410
Urban 2516638 1383274 1133364
Region-wise Population
Jammu 4430191
Kashmir 5476970
Ladakh 236539
Population by Religion
Religion Total Percentage
Hindus 3005349 29.62%
Sikhs 207154 2.04%
Muslims 6793240 66.98%
Christians 20299 0.20%
Buddhists 113787 1.12%
Jains 2518 0.02%
Others 1353 0.01%
Literates Absolute
Total Male Female
Total 4807286 3060628 1746658
Rural 3192078 2069618 1122460
Urban 1615208 991010 624198
Sex ratio(Female per 1000 Male)
Total 892
Rural 917
Urban 819


5


1.4.2. ADMINISTRATIVE SET UP

The state has administrative set up of 22 districts, 82 Tehsils , 142 Blocks. There
are as many as 6652 villages and 68 urban areas besides 7 urban
agglomerations.
Districts No. of
Tehsils
No. of
Blocks
Srinagar 02 01
Ganderbal 03 04
Budgam 06 08
Anantnag 06 07
Kulgam 03 05
Pulwama 04 05
Shopian 02 02
Baramulla 07 12
Bandipora 03 05
Kupwara 03 11
Kargil 02 09
Leh 01 09
Jammu 05 08
Samba 01 04
Kathua 04 08
Poonch 05 06
Rajouri 07 08
Udhampur 04 07
Reasi 02 04
Doda 04 08
Kishtwar 04 08
Ramban 02 04

1.4.3 GROSS STATE DOMESTIC PRODUCTION IN 2009-2010

i) Current Prices 47709.31 (Rs. in Crores)
ii) Constant Price (2004-2005) 37886.92 (Rs. in Crores)

1.4.4 SECTORAL CONTRIBUTION OF STATE GDP 2009-2010.

i) Primary Sector 22.63%
ii) Secondary Sector 29.55%
iii) Tertiary Sector
47.82%
6

Sectoral Wise Contribution
Towards GDP
30%
47%
23%
Secondary Teritiary Primary




1.4.5 LAND UTILISATION: (2008-2009)

Classification of area (Area in Hectares)

i) Total cropped area 2416 (thousand)
ii) Net Sown area 742 (thousand)
iii) Area under forests 658 (thousand)
iv) Total area 1133.94 (thousand)





7

1.4.6 HORTICULTURE: (2009-2010)

i) Area under Horticulture 3,00,700 (Hect.)
ii) Production of fruits (2009-2010) 17.13 ( Lakh M.T.)
iii) Main fruits in the State: Apple, Mango, Walnut, Almond,
Pear, Cherry, apricot, Peach, Plum

1.4.7 FORESTS:

Area under forest (2008-2009)
i.) Reserved Forest 20,230 (Sq.Km)
ii) Protected Forest 15,410 (Sq.Km)
iii)Unclassified 4,820 (Sq.Km)


1.4.8 LIVE STOCK:

i) Live stock population (2007-08) 1, 47,908.

1.4.9 FISHERIES:

i) Fishermen licensed (2008-09 13,206 Nos.
(ii) Annual fish catch (Qty.) 1, 92,325(Qtls.).


1.4.10 ELECTRICITY (2009-2010)

i) Total Potential 20,000 (MW)
ii) Generated 3379.489 MW

1.4.11 EDUCATION (2010-11) Govt. Sector only
i) Universities in Jammu & Kashmir 7 Nos.
ii) No of Middle School 9320
iii) No. of High/Higher Sec. Schools 3169
iii) Degree Colleges 92

1.4.12 TECHNICAL INSTITUTIONS (as on 31.3.2009)

a) NIT 01(Srinagar)
b) Engg. College. 05
c) Polytechnics 12
d) I.T.Is 37

1.4.13 BANKING INSTITUTIONS (As on Sept. 2008)
i) Convener Bank J&K Bank
ii) No. of Branches 1035

8

1.5 IMPORTANT RESOURCES OF JAMMU & KASHMIR
1.5.1 AGRICULTURE
Agriculture is the dominant aspect of the economy of Jammu & Kashmir. It
occupies an important place in the economy of the State . the Share of
agriculture & allied activities in the Gross state domestic Product at
constant prices (1999-2000) stands at 20.59 % .One of the prominent
occupations for the people of Jammu & Kashmir is Agriculture a. Basically
the Jammu & Kashmir State is agrarian in nature. 80% of the total populace
of the state is dependent on agriculture as the source of revenue. Rice,
Maize and Wheat is the major crops of the locale. Jammu and Kashmir is
known for its mono-cropped and rain-fed economy with 40% area in the
Jammu division and 60% in Kashmir.
1.5.2 HORTICULTURE
Nature has endowed Kashmir with innumerable gifts, its towering
snow clad mountains, bubbling streams, transparent and
sparkling lakes, flower meadows, colorful orchards and rare
fauna have always attracted numerous tourists from all corners
of the world. The age-old traditional fruit cultivation has profusely
colored the serenity and tranquility of Kashmirs landscape.
Kashmir, the land of fauna, flora and fruits possesses a rich
history of fruit cultivation. Years before the time of warrior King
Lalita Ditya and though the golden periods of benevolent kings
like Awantiwaraman and Sultan Zain-ul-Abdin Badshah,
Kashmir has remained the symbol of fruits and flowers.

The horticulture industry in Kashmir has become the bulwark of
rural economy in the state. This industry earns a revenue of
over Rs. 50 crores yearly and provides job facilities to the
thousands of people directly and indirectly. Our State is blessed
with vast potential for growing all kinds of fruits. The State has
four distinct Agro climatic zones i.e. Sub-tropical, Intermediate
(Sub-temperate), Temperate and Cold Arid Zone. Apple, Pear,
Peach, Plum, Apricot and Walnutare successfully grown in
temperate and cold arid areas (Kashmir Division) while as Olive,
Pecan nut and Kiwi offer enormous scope for cultivation in
Intermediate zone(Jammu Division) of the State. Similarly sub-
tropical are as offer potential for cultivation of Mango, Citrus, Ber,
Aonla, Guava, Litchi and loquat(Jammu Division). Besides, cash
crops and other high value low volume horticultural crops like
strawberry etc having relatively inelastic market demand, can
thrive well in both the divisions of the State. Growing of high
value cash crops on large scale will not only conserve the natural
resources, but will also make our farmers prosperous, which will
ultimately result in employment generation. Such an orientation
of fruit growing to this varied type of climate formed the corner
stone of the strategy for development of horticulture in the State
during 10th Five Year Plan. The strategy adopted for development
of horticulture in the State, therefore, stresses the need for
zonalisation of the fruit cultivation.

9

The climate of Kashmir is favorable for the production of fruits. The kasmiri
apple is in different both in taste & appearance.. it has gained fame in the
export market and fetched a very good return. Production of fruits like
apples, pears, cherries, plums, mulberry peaches, apricots, walnuts and
almonds is common in the territory. About 20% of the total cultivated area is
under horticulture crop. About 4.5 Lakh families are engaged directly or
indirectly with horticulture activities. In physical terms the area under fruit
cultivation is about 3.25 lakh hectares as on 2010-11. Production of fruits
was 22.22 lakh metric tones comprising of 20.45 lakh Metric Tones of fresh
fruits and 1.76 lakh metric tones of dry fruit. Export of fruit outside state for
the year 2010-11 was recorded as 25124.16 metric tones.
1.5.2.1 SOME CHOICEST VARIETIES OF KASHMIR FRUIT :
a) Apple

Amri (Ambri Kashmiri)

Lawrence describes it as "the most popular apple in Shopian Kashmir
-- a sweet fruit ripening in October and keeping its condition for a
long time and finding favour with the natives of India for its sweetness
and its handsome appearance" Ambri is indigenous to Kashmir and
continues to enjoy superiority by virtue of its crisp, sweet flesh
and excellent aroma. The fruit is blushed red, striped, medium-sized
and oblong to conical in shape with longer storage life. The fruit
matures in the last week of September to first week of October. It is
an excellent dessert variety.
American trel (American Apirogue)

This variety has crisp juicy, greenish white and sweet flesh and is
usually medium-sized, as a result of which it has become very
popular with consumers. Oblate-shaped, blushed and patchy red
with a smooth surface, it matures in the last week of
September. A good dessert variety.

Delicious (Red Delicious)

A world-renowned variety. It is one of the most widely grown
apples. The fruits tapering in shape with characteristic five lobes at the
apex. Skin is smooth ,striped and blushed red. Flesh is fine grained,
greenish white, sweet, very juicy and crisp with good
aroma. Size is medium to large and it matures by the end of
September. A good dessert variety.

Maharaji (White Dotted Red)

A large-sized apple with bright red color on a green base with
conspicious dots. Flesh is crisp, very juicy, acidic and aromatic.
The variety sweetens in storage and in an excellent keeper. The fruit
matures in late October. It is also a cooking and dessert variety.


Hazaratbali (Benoni)
10


A medium-sized apple with rounds to slightly conical in shape and
red to striped skin; white juicy and sweet flesh. It is the earliest
variety of apple available from the valley, maturing in mid-July.
Hazaratbali (Benoni)

A medium-sized apple with rounds to slightly conical in shape and
red to striped skin; white juicy and sweet flesh. It is the earliest
variety of apple available from the valley, maturing in mid-July.

Kesri (Coxs Orange Pippin)

An old English medium-sized apple; it is round to conical in shape
with skin orange red deepening to bright red. The flesh is yellow, firm,
crisp, tender and very juicy. A dessert apple with good aroma and sub-
acidic taste. The fruit matures in mid August.

b) Pear

Nakh Kashmiri (Chinese Sandy Pear)

This variety gets its name from grained flesh. A conical shaped, small
to medium sized variety with crisp, white and juicy flesh. The skin is
thick and green in color that turns yellow on ripening. Carries well in
storage and is an excellent dessert variety.

Williams

A widely known English variety. The fruit is large-sized and
symmetrical. Skin is yellow with faint blush. The flesh is fine,
grained, juicy and sweet. The fruit matures in mid July. A good
dessert variety and the choice of canners.
c) Cherry

Gilas Double (Bigarreau Napoleon)

This variety is large-sized and attractive with cream-red color. The flesh
is firm and juicy but slightly acidic. A good keeper; excellent for canning,
and dessert purposes.

Gilas Awal Number (Guigne Pourpera Pecoce)

Medium-sized, light red colored and quite fleshy. The flesh is juicy and
sweet with acidic tinge. First to come in the market in May. A good
dessert variety.

Gilas Misri (Bigarreau Noir Grossa)

Large sized and red colored; its skin is firm and flesh is sweet and juicy.
A good dessert variety.



11

d) Walnut

Kashmir walnuts are popular within the country as well as in foreign
markets; a source of substantial foreign exchange. On the basis of
shell thickness these are grouped as "Burzil", "Kagzi" and "Wont";
corresponding to "Paper-shelled". Walnut Kernels are used in
confectionery, as dessert and for extraction of oil.

e) Almond
Kashmir almonds are known for their superiority of taste and are very
popular with the consumers. Like walnuts these are also grouped on
the basis of shell thickness as "Papery", "Thin-shelled", and "Thick-
shelled". Considered as highly nourishing and of great medicinal
value, its kernels are used in confectionery as well as dessert. Its
trees are the first blooming fruit trees and an enchanting sight that
lends glamour to the spring in Kashmir.
f) Peaches
Quetta
Fruit medium to above medium, pointed, halves acuminate. Skin
thick, downy ,Yellow base with scattered red patches. Flesh firm,
creamy yellow, moderately juicy, sweet with acidic blend when fully
ripe. Free stone. The fruit is ready for harvest in 3
rd
week of
August.

g) Saffron

Saffron, the golden Condiment has a history of many centuries. It
is a condiment medicine, a natural dyestuff. It is an expensive
spice in the world used on various functions by adding delicate
aroma, pleasing flavor and magnificent yellow color to food. Its color is
sharp and peneptating. It is one of the potential foreign exchange
earner and is cultivated in Kashmir and extended to Kishtwar. Its
harvesting starts from mid of October to end of November.

h) Apricot

Gilgati Sweet

Fruit medium, from oblong to rather ovate, slightly irregular in
shape. Cavity rather deep to medium in depth, regular and acute.
Skin yellow when fresh (brown yellow when dried) sweet, moderately
flavored, stone free kernel sweet. Ready for picking in the last week of
June.

i) Strawberry

Strawberry is earliest fruit available in Srinagar market during April.
Sub-tropical areas in Jammu have potential to grow the crop under
irrigated condition. It is valued for easy propagation, early maturity,
12

high yield with 5 to 9 percent sugar. Plants start bearing in second
year. Over 2000 varieties of garden strawberry are known with
large fruit, weighing 30-70 grams.


j) Plums

Santa Rosa
Fruit medium, roundish, regular, skin smooth and thin flesh deep red,
juicy, sweet and soft full of aroma, stone cling type

1.5.2.1 SOME CHOICEST VARIETIES OF KASHMIR FRUIT :
a) Apple

Amri (Ambri Kashmiri)

Lawrence describes it as "the most popular apple in Shopian Kashmir
-- a sweet fruit ripening in October and keeping its condition for a
long time and finding favour with the natives of India for its sweetness
and its handsome appearance" Ambri is indigenous to Kashmir and
continues to enjoy superiority by virtue of its crisp, sweet flesh
and excellent aroma. The fruit is blushed red, striped, medium-sized
and oblong to conical in shape with longer storage life. The fruit
matures in the last week of September to first week of October. It is
an excellent dessert variety.
American trel (American Apirogue)

This variety has crisp juicy, greenish white and sweet flesh and is
usually medium-sized, as a result of which it has become very
popular with consumers. Oblate-shaped, blushed and patchy red
with a smooth surface, it matures in the last week of
September. A good dessert variety.

Delicious (Red Delicious)

A world-renowned variety. It is one of the most widely grown
apples. The fruits tapering in shape with characteristic five lobes at the
apex. Skin is smooth ,striped and blushed red. Flesh is fine grained,
greenish white, sweet, very juicy and crisp with good
aroma. Size is medium to large and it matures by the end of
September. A good dessert variety.

Maharaji (White Dotted Red)

A large-sized apple with bright red color on a green base with
conspicious dots. Flesh is crisp, very juicy, acidic and aromatic.
The variety sweetens in storage and in an excellent keeper. The fruit
matures in late October. It is also a cooking and dessert variety.


13

Hazaratbali (Benoni)

A medium-sized apple with rounds to slightly conical in shape and
red to striped skin; white juicy and sweet flesh. It is the earliest
variety of apple available from the valley, maturing in mid-July.
Hazaratbali (Benoni)

A medium-sized apple with rounds to slightly conical in shape and
red to striped skin; white juicy and sweet flesh. It is the earliest
variety of apple available from the valley, maturing in mid-July.

Kesri (Coxs Orange Pippin)

An old English medium-sized apple; it is round to conical in shape
with skin orange red deepening to bright red. The flesh is yellow, firm,
crisp, tender and very juicy. A dessert apple with good aroma and sub-
acidic taste. The fruit matures in mid August.

b) Pear

Nakh Kashmiri (Chinese Sandy Pear)

This variety gets its name from grained flesh. A conical shaped, small
to medium sized variety with crisp, white and juicy flesh. The skin is
thick and green in color that turns yellow on ripening. Carries well in
storage and is an excellent dessert variety.

Williams

A widely known English variety. The fruit is large-sized and
symmetrical. Skin is yellow with faint blush. The flesh is fine,
grained, juicy and sweet. The fruit matures in mid July. A good
dessert variety and the choice of canners.
c) Cherry

Gilas Double (Bigarreau Napoleon)

This variety is large-sized and attractive with cream-red color. The flesh
is firm and juicy but slightly acidic. A good keeper; excellent for canning,
and dessert purposes.

Gilas Awal Number (Guigne Pourpera Pecoce)

Medium-sized, light red colored and quite fleshy. The flesh is juicy and
sweet with acidic tinge. First to come in the market in May. A good
dessert variety.

Gilas Misri (Bigarreau Noir Grossa)

Large sized and red colored; its skin is firm and flesh is sweet and juicy.
A good dessert variety.


14

d) Walnut

Kashmir walnuts are popular within the country as well as in foreign
markets; a source of substantial foreign exchange. On the basis of
shell thickness these are grouped as "Burzil", "Kagzi" and "Wont";
corresponding to "Paper-shelled". Walnut Kernels are used in
confectionery, as dessert and for extraction of oil.

e) Almond
Kashmir almonds are known for their superiority of taste and are very
popular with the consumers. Like walnuts these are also grouped on
the basis of shell thickness as "Papery", "Thin-shelled", and "Thick-
shelled". Considered as highly nourishing and of great medicinal
value, its kernels are used in confectionery as well as dessert. Its
trees are the first blooming fruit trees and an enchanting sight that
lends glamour to the spring in Kashmir.
f)Peaches
Quetta
Fruit medium to above medium, pointed, halves acuminate. Skin
thick, downy ,Yellow base with scattered red patches. Flesh firm,
creamy yellow, moderately juicy, sweet with acidic blend when fully
ripe. Free stone. The fruit is ready for harvest in 3
rd
week of
August.

g) Saffron

Saffron, the golden Condiment has a history of many centuries. It
is a condiment medicine, a natural dyestuff. It is an expensive
spice in the world used on various functions by adding delicate
aroma, pleasing flavor and magnificent yellow color to food. Its color is
sharp and peneptating. It is one of the potential foreign exchange
earner and is cultivated in Kashmir and extended to Kishtwar. Its
harvesting starts from mid of October to end of November.

h) Apricot

Gilgati Sweet

Fruit medium, from oblong to rather ovate, slightly irregular in
shape. Cavity rather deep to medium in depth, regular and acute.
Skin yellow when fresh (brown yellow when dried) sweet, moderately
flavored, stone free kernel sweet. Ready for picking in the last week of
June.

i) Strawberry

Strawberry is earliest fruit available in Srinagar market during April.
Sub-tropical areas in Jammu have potential to grow the crop under
irrigated condition. It is valued for easy propagation, early maturity,
high yield with 5 to 9 percent sugar. Plants start bearing in second
year. Over 2000 varieties of garden strawberry are known with
large fruit, weighing 30-70 grams.
15



j) Plums

Santa Rosa
Fruit medium, roundish, regular, skin smooth and thin flesh deep red,
juicy, sweet and soft full of aroma, stone cling type
1.5.3 FORESTS
Forest are one of the most important components of the terrestrial environmental
system and complete resource base. Forest have a multi dimensional role to play.
They provide not only timber, fuel wood, fodder & fibre grasses etc but also
maintain the ecological balance and life support system essential for food
production, health all round development of mankind. The effective geographical
area of Jammu & Kashmir state is 222236 Sq. kms out of which 20230 Sq.kms is
the forest area. Forest area is largely distributed in Kashmir valley and Jammu
region where the forest cover constitutes 50.97% and 45.89% respectively of the
geographical area. In Ladakh region whole forest cover accounts for less than 1%
i.e is only 0.06%
Flora: Jammu and Kashmir abounds in rich flora (vegetation, forests).
The state, described as paradise on earth, is full of many hues of wood
and game. The trees present various enchanting colours through the
cycle of the seasons among which the autumnal look is breathtaking. The
most magnificent of the Kashmir trees is the
Chinar found throughout the valley, which grows to gigantic size and
girth. Walnut, willow, almond and cider also add to the rich flora of
Kashmir.InKashmirValley,the well-marked vegetation is willow (mainly
used for cricket bat making), which mostly covers the marshy areas.
Willow is also found on river banks in Leh and
Kargil districts of Ladakh Region and in Poonch, Doda and Kishtwar of
Jammu region.
1.5.4 HYDRO POWER
Power holds a key to any developmental effort. It is an essential component
for sustained economic growth and commensurate growth in power supply is
required to ensure that economy keeps growing. The gradual increase in the
demand of power means the economy is growing and is leading to
modernization, Industrialization and improvement in basic amenities
culminating into quality of life. Jammu & Kashmir has immense potential for
development of hydraulic power. The estimated hydro power of the state is
20,000 Mws of which 16480 Mws have been identified. Out of the
identified potential only 1478.70 Mws or 9% have been exploited till the
end of the 10
th
five year plan. Some important Hydro Power Projects of
Jammu & Kashmir are given below:

16


Name of Power House Configuration Installed Capacity in MW
STATE SECTOR
J helum River Basin
Lower J helum 3 x 35 105
Upper Sindh I 2 x 11.3 22.6
Ganderbal 2 x 3 x 2 x 4.5 15
Upper Sindh II 3 x 35 105
Pahalgam 2 x 1.5 3
Karnah 2 x 1 2
Chenab Basin
Chenani-i 5x4.66 23.30
Chenani-ii 2x1 2
Chenani-iii 3x2.5 7.50
Bhaderwah 2x0.5 1
Baglihar 3x150 450 (2 units commissioned)
Ravi Basin
Sewa-III 3x3 9
Indus Basin
Iqbal 3x1.25 3.75
Hunder 2x0.20 0.40
Sumoor 2x0.05 0.10
Igo-Mercellong 2x1.50 3
Haftal 2x0.50 1
Marpachoo 3x0.25 0.75
Barzo 2x0.15 0.30
Stakna (with J &KPDD) 2x2 4
Central Sector
Salal HEP 6x115 690
Uri-I 4x120 480
Dul-Hasti 3x130 390
Total 1560



17

1.5.5 TOURISM
Tourism plays a key role in the economic development of the State. The
number of tourists visiting Kashmir valley has shown a persistent increase
upto nineteen eighties. The flow of tourists decreased because of turmoil,
particularly in 1990s. The Jammu and Kashmir state has tremendous
potential for developing tourism. The slopes available at Sonamarg,
Pahalgam and Gulmarg provide scope for development of winter tourism.
Bestowed with rich scenic beauty, the snow capped forests in winter draw
a great chunk of Tourists from all over the world to Gulmarg the high
altitude resort of Kashmir valley.. The state govt. too is devoting full
attention for developing sufficient infrastructure to boost the tourist trade in
the state. Tourism has a multiplier effect on income, employment
generation and gives tremendous fillip to the economy. The revival of
tourist trade can be assessed by the increasing number of tourists, both
Indian and non-Indian to the state. The state has three distinct niches,
while leisure tourism is available in Kashmir valley, Pilgrim tourism in
Jammu and Ladakh has the potential to offer adventure tourism

1.6 INDUSTRIAL PROFILE OF JAMMU & KASHMIR STATE

J&K has not been able to attract investments in this sector and remained
an industrially backward state due to its unique economic disadvantages
arising out of remoteness and poor connectivity, hilly and often
inhospitable terrain, weak resource base, poor infrastructure, sparse
population density, shallow markets and most importantly the political
uncertainty. Moreover the natural factors are more conducive for
handicrafts, village and Small Scale Industries and less to large and heavy
industries. Nevertheless, despite all odds and limitations the Jammu
&Kashmir State is on the path of industrialization in a modest way. Many
small and medium-scale industries have come up basically in the
traditional sectors along with some new areas like food processing, agro-
based units and metallic and non metallic products. Besides, due to
saturation of employment opportunities in the government/traditional non-
governmental sectors like Agriculture, Industrial sector has been declared
as the main vehicle for accelerating economic tempo besides providing
employment to the educated unemployed youth in the State
Industrial development always remains a thrust area in the Government
agenda. Governments endeavor is to provide efficient and cost effective
infrastructure, skilled human resources, stable environment and good
governance which are the pre-requisites for creating a proper investment
environment for sustainable industrial growth. Dispersal of industries to the
266 underdeveloped areas in the state through creation of necessary
infrastructure and providing financial /fiscal incentives is focused. In the
perspective of industrial growth, Industries and Commerce Department
has been established with a well knit system for carrying its activities
effectively. The Industries and Commerce Department is concentrating to
18

attract investment in the State for developing world class infrastructure to
achieve objectives like:


1. To explore available resources in the State.
2. To create conducive industrial employment.
3. To promote labor intensive industries to lessen the pressure on
unemployment market in the State.
4. To improve industrial performance by providing necessary inputs so as to
reduce the dependence of the State on imports.
The department is focusing on key sectors like food processing, pharmaceuticals,
biotechnology, textiles, sports goods, information technology etc. to accelerate
industrial growth in the State. Industrially, J&K State is lagging behind and
occupies the place on the lowest side when compared to other states of the union
India. The industrial sector of the State is confined to small scale & medium
industries. The large-scale & heavy industries do not exist in the State. This
sluggish industrial growth is mainly attributing to lack of sufficient infrastructure
and considering the extreme geographical location of the State. The cost of raw
material & transportation adds to manufacturing cost, thereby making the J&K
products uncompetitive. The number of small scale industrial units as on
31.03.2008 registered with the State Directorate of Industries &
Commerce has reached to forty seven thousands providing
employment opportunities to 2.32 lakh people. The availability of land
is a major constraint in developing new industrial estate.

State Package

Fiscal Incentives
100 percent subsidy on purchase of new Diesel Generating sets.
100 percent subsidy on project report and quality testing equipment.
75 percent subsidy on Research and development.
3 percent interest subsidy on working capital.
5 percent rebate on interest on term loan for technocrats.
Special incentive for brand promotion and modernisation267
Land and Power at concessional rates.
30 percent capital investment subsidy on land, building and plant and
Machinery.
Tax Incentives

Toll tax exemption on import of raw material and export of finished
products.
CST exemption
VAT remission
Stamp duty exemption

Central Package

Fiscal Incentives

15 percent subsidy on capital investment on plant and machinery.
3 percent interest subsidy on working capital.
100 percent insurance cover to Industrial units.
19

90 percent Transport subsidy



Tax Incentives
100 percent excise refund
Total income tax exemption

INDUSTRAIL INFRASTRUCTURE

Infrastructure development serves as an engine for industrial development and
calls for continuous attention of the Government. Planning and development of
Industrial Estates / Infrastructure in the perspective of industrial growth is the
major function of the Directorate of Industries and Commerce. The department of
Industries and Commerce has 51 existing Industrial estates in the State under the
control of Directorate of Industries and Commerce and SIDCO/SICOP. These
Industrial Estates are spread over an area of 27718 Kanals of land. In addition to
above industrial estates 17 new Industrial Estates/expansion of the existing ones,
spread over an area of 11187 kanals of land are being developed which are at
various stages of development/implementation.

IINDUSTRAIL GROWTH CENTERS

State of J&K has got two growth centers one each located in Jammu province at
District Samba and in Kashmir province located adt Lassipora District Pulwama.

Industrial Food Park

Industrial food park has been established at Khunmooh District Srinagar and
Doabegah District Sopore with the assistance of Ministry of food processing In
Khunmooh the land provided to 44 Industrial units. 15 industrial units are in
production, The food park at Doabegah is to come up with project outlay of Rs
950 Lacs

UPCOMMING INDUSTRIAL INFRASTRUCTURE

a. Industrial Estate Ompora, Budgam:

Steps are being taken for development of 1000 kanals of land at Ompora
as an industrial estate.

b. Industrial Estate, Ghatti, Kathua:

About 3500 Kanals of land have been transferred to J&K SIDCO for
establishing an industrial estate at Ghatti in Kathua district. The necessary
developmental plans have been chalked out and the works on the project
are being started immediately. There is a pending demand for allotment of
1019 kanals of land from 17 industrial houses which have already been
cleared by the Apex Projects Clearance Committee of the state.


20




c. Industrial Estates, Khunmoh, Phase -III:

About 1000 kanals of land have already been handed over to SIDCO last
year, however, the development work of said industrial estate could not be taken
up for execution as the payment of some of the land owners had not been made
by the Revenue Authorities as the result of which the owners of the land did not
allow any works to be executed on the project. The said issues have now been
settled and the corporation is in the process of framing of developmental
plan for the project.

D SILK TECH PARK ZAKURA

E IID CENTER GOVINDSAR DISTRICT KATHUA

F TEXTILE CITY AT KATHUA

There is proposal to set up TEXTILE CITY at Kathua. This city will be first of its
kind in the country. In the proposed Textile City, 239 proposed units would be
engaged in cotton, silk and wool with a thrust on export. The proposed textile city
spread over an area of 6.000 Kanals with an investment of 197 Crores and it is
expected to generate employment to 55,000 persons. The State Government is
planning to produce high-tech milk processing and marketing in collaboration with
the Gujrat Cooperative Milk Marketing Federation. The consumer now will get
good quality of milk through an organized cooperative network along the lines of
Amul in Anand (Gujrat) after the completion of this project. The project envisages
increasing processing capacity of two milk processing units of Chashma Shai in
Srinagar & Satwari in Jammu from existing 20000 ltrs to one lakh ltrs per day.


1.7 INSTITUTIONAL SUPPORT AND INFRASTRUCTURE AVAILABLE

1.7.1 MICRO, SMALL & MEDIUM ENTERPRISES DEVELOPMENT INSTITUTE


Micro Small & Medium Enterprises Development Institute (MSME-DI)J&K Jammu
formally known as Small Industries Service Institute {SISI} Jammu is the field
office of SIDO in J&K State. It has a Br. SISI (Workshop) at Industrial Estate,
Digiana, Jammu. These Institutes provides a number of services to the small
scale industry in the state. The main functions of the Institutions are to extend
Techno-economic-managerial constancy to the existing and prospective
entrepreneurs. They also extend various types of training programmes to develop
entrepreneurship and Skill development. Necessary back-up supports for all
industrial development activities are also extended to all DICs in the State.

The main functions of the MSME DI , Jammu are as under:
Technical constancy.
21

Preparation of project profiles.
Conducting of Techno-economic studies.
Preparation of State Industrial Profile and District Potentiality Survey
Reports.
Organizing seminars/Exhibitions to update
Conduction Entrepreneurial Development Programmes/Motivational
Campaigns. .
Export promotion.
Sub-Contract Exchange (SCX).

MSME DI Srinagar , Camp Jammu has a workshop at I/E Santnagar,
Barzulla, Srinagar & Branch MSME DI Jammu has a workshop at
Industrial Estate, Digiana, Jammu. Both the workshops undertake the job
work in the field of Turning, Machining, Lathe works etc. It also provides 6
months Training in the trades of Fitter, Machinists Trades, etc.

INDUSTRIAL ESTATES IN THE STATE OF JAMMU & KASHMIR
UNDER THE CONTROL OF SMALL INDUSTRIAL DEVELOPMENT
CORPORATION (SICOP)
S.No Name of
District
Name of Industrial
Estate
Area No. of Sheds No. of Units
Kanals Govt.
sheds
Pvt.
Sheds
Functi-
onal
Non Fun-
Ctional
1 2 3 4 5 6 7 8
A. Kashmir Division
1 Srinagar Indl./Estate Zakura 128 0 0 7 46
- do - Zainkote 525 0 0 37 84
2 Anantnag - do - Sports
Goods
Complex
Bijbehara
206 0 0 0 0
Total A 859 0 0 44 130
B. Jammu Division
1 Jammu Indl./Estate Gangyal 988 0 0 184 66
- do - Birpur 306 0 0 64 12
2 Udhampur - do - Battal
Ballian
1051 0 0 3 0
3 Kathua - do - Kathua II 417 0 0 29 81
Total B 2962 0 0 280 81
Total Jammu & Kashmir (A + B) 3621 0 0 324 211
INDUSTRIAL ESTATES IN THE STATE OF JAMMU & KASHMIR
UNDER THE CONTROL OF STATE INDUSTRIAL DEVELOPMENT
CORPORATION (SIDCO)
S.No Name of
District
Name of Industrial
Estate
Area No. of Sheds No. of Units
Kanals Govt.
sheds
Pvt.
Sheds
Functi-
onal
Non
Fun-
Ctional
1 2 3 4 5 6 7 8
A. Kashmir Division
1 Srinagar Indl./Estate Khanmoh 1104 0 0 6 39
- do - Shalteng 105 0 0 19 7
2 Budgam - do - Rangreth 1152.19 0 0 16 30
EPIP Ompora 1000 0 0 0 0
22

3 Pulwama - do - Lethpora 168 0 0 0 3
- do - Lassipora 6300 0 0 2 2
4 Baramulla - do - Doabgah 152 0 0 0 0
Total A 9981 0 0 43 81
B. Jammu Division
1 Jammu Indl./Estate Bari
Brahmana
5240 0 0 174 22
I.G.C Samba 1882 0 0 0 0
EPIP Kartholi 1000 0 0 0 0
2 Kathua I.C Kathua 209 0 0 0 0
Total B 8331 0 0 174 22
Total Jammu & Kashmir (A + B) 18312.19 0 0 217 103
INDUSTRIAL ESTATES AT VARIOUS LOCATIONS IN JAMMU & KASHMIR
UNDER THE CONTROL OF DIRECTORATE OF INDUSTRIES AND COMMERCE, J & K GOVT.
S.No Name of
District
Name of Industrial Estate Area No. of Sheds No. of Units
Kanals Govt.
sheds
Pvt.
Sheds
Functi-
onal
Non
Fun-
Ctional
1 2 3 4 5 6 7 8
A. Kashmir Division
1 Srinagar Indl./Estate B.A.M.K 144 10 90 79 27
- do - Ganderbal 21 6 21 7 21
- do - Duderhma 85.6 0 0 0 0
2 Budgam - do - Barzulla 102 54 0 40 14
3 Anantnag - do - Anantnag 51.8 26 17 26 13
- do - Kulgam 19.8 8 0 0 8
- do - Anchidora 86.7 0 28 14 14
- do - Bijbehara 27 8 8 4 4
4 Pulwama - do - Pulwama 24 8 0 1 3
- do - Shopian 62.18 19 0 1 5
- do - Chathpora 96 0 0 0 0
5 Baramulla - do - Baramulla 58 9 15 14 9
- do - Sopore 82 10 11 6 15
- do - Sumbal 45 12 3 3 8
- do - Bandipora 16.2 5 0 0 5
6 Kupwara - do - Kupwara
(Branwari)
15.1 0 3 1 2
- do - Kupwara
(Handwara)
105.12 0 0 0 0
7 Leh - do - Leh 237 0 0 21 36
8 Kargil - do - Chencik 116 0 14 7 7
Total A 1394.2 175 210 224 191
B. Jammu Division
1 Jammu Indl./Estate Digaina 137 78 38 56 33
- do - Jammu Cantt 96 3 31 32 3
- do - Akhnoor 29.15 8 7 10 5
- do - Samba 20 12 4 4 0
2 Udhampur - do - Udhampur 49.4 9 10 11 8
- do - Reasi 25 0 0 0 0
3 Kathua - do - Kathua I 376.8 14 77 60 17
- do - Hiranagar 20.6 12 2 4 3
- do - Bilawar 53.18 0 0 0 0
4 Doda - do - Sangrambata 42.15 0 0 0 0
5 Rajouri - do - Kheora 51.17 22 21 9 0
6 Poonch - do - Poonch 26.7 0 19 13 6
- do - Ext. Area
Poonch
9.17 0 3 2 1
23

Total B 938.7 158 212 201 76
Total Jammu & Kashmir (A + B) 2332.9 333 422 425 267

1.7.2 NATIONAL SMALL INDUSTRIES CORPORATION (NSIC)

The National Small Industries Corporation (NSIC) was established in 1955 with
primary function of helping the small scale entrepreneurs by providing
machinery both Indigenous and Imported on hire purchase basis. It also
provided institutional marketing assistance by enlisting small-scale units for
participation in Govt. Stores purchase programme. NSIC has introduced some
years back a single point registration scheme with a view to avoid multiplicity of
registration of small-scale units with various Govt. Agencies. The MSME DI
is maintaining close liaison with NSIC for promotion of Small-Scale industries
in the state.

1.7.3. SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI)


Small Industries Development Bank of India (SIDBI) is an apex Bank for
Small-Scale Industries Extends assistance to SSI Units through various
schemes. The main activities of SIDBI are:
Refinancing of loans and advances extended by the Primary lending
institutions to industrial concerns in the small scale sector

Extension of seed capital/soft loan assistance under National Equity Fund,
Mahila Udyam Nidhi and seed capital scheme through specified lending
agencies.

Granting direct assistance as well as refinancing of loans extended by
primary lending institutions for financing export of products manufactured
by industrial concerns in the small-scale sector.

Extending financial support to National Small Industries Corporation for
providing leasing Hire purchase and marketing support to SSI units.

.
1.7.4. KHADI AND VILLAGE INDUSTRIES COMMISSION (KVIC)

KVIC is a central Govt. Organization and is working for the development of
Khadi and Village industries in the country. It prepares all the policies and
procedures to be adopted for the development of Khadi and Village
Industries. It provides grants to banks, which in turns are financing to
Khadi units. Under KVIC loans are to be provided both for institutional and
individuals. In J&K, the main objective of KVIC is to generate rural
employment by way of encouraging Khadi & Village Industries. In J&K
State there are two KVIC offices working one at Srinagar and other at
Jammu. To boost up self-employment opportunities in rural area of the
state a new programme is being implemented known as National
Programme on rural Industrialization in which office of the Development
24

Commissioner will also participate. KVIC has identified certain cluster
group of industries as a first step for implementing for this programme.
1.7.5. NABARD

The National Bank for Agricultural and Rural Development is also playing
an important role for the development of Small Scale Industries by way of
direct and indirect financing especially for agro-base industries. It has a
number of schemes for financing rural industries.
1.7.6. DIRECTORATE OF INDUSTRIES

Directorate of Industries, which is located at Jawaher Udyog Bhavan , Rail
Head Complex , Jammu & opposite Partap Park, Srinagar is the Head
office of all the DICs and is responsible for industrial development of the
State. It is maintaining all the industrial activities through different state
Govt. offices, corporations. Directorate of Industries is implementing all the
policies of the State Government for industrial development through
District Industries Centers. There are two Directorate offices one at
Jammu and the other at Kashmir responsible for development of industries
in Jammu & Kashmir regions respectively.

1.7.7. DISTRICT INCUSTIES CENTER

There are 22 district in the state and the entire district is covered under the
plan of District Industries Center. In DIC, General Manager is the Head of
the Office and is assisted by Assistant General Manager and Project
Manager for day to day office matters for the development of industries in
the district. The main activities of DICs are registration of units, sanction of
subsidy, implementation of PMEGP scheme etc. A list of address of all the
DICs are Annexed at the end of the REPORT.

1.7.8. J&K STATE FINANCIAL CORPORATION

J&K State Financial Corporation was established with an objective of
industries especially for acquiring fixed assets The nature of scheme
under which financial assistance is provided by S.F.C. as follows:
Composite Loan: Composite loans given for establishing cottage/tiny units.
It does not require any guarantee for financial assistance by S.F.C.
Long Term Loan: Long Term Loans are to be provided for purchase of
land, building and machinery both large and small scale industries could
avail this facility for acquiring fixed assets in the from of term loan.
Scheme for Rehabilitation of Sick Industrial Units: Any sick unit viable for
revival with in a reasonable period of time is eligible for assistance under
this scheme. Besides the above, scheme, there are separate schemes for
women entrepreneurs, physically handicapped and for ex-servicemen.
Modernization Scheme: Under the Modernization scheme, industrial units
which are in existence for more than 5 years are eligible for assistance,
25

provided that proposals for the assistance should establish the need for
Modernization.


1.7.9. J&K CONSULTANCY ORGANIZATION

J&K ITCO was established as a joint venture of IDBI, IFCI, ICICI, for
providing technical constancy for starting industries in large medium and
small-scale sectors. The assistance rendered by J&K ITCO is as Follows:
Services in promotion of new industries and diversification/Modernization
of existing industries.
Identification of feasible and profitable schemes in the small medium and
large sector
Conducting of Techno-economic feasibility studies.
Conducting special studies in respect of certain specified group of
industries like cluster studies.
Conducting entrepreneurial development programmes.
Preparation of reports for revival of sick units.


1.7.10 KHADI & VILLAGE INDUSTRIES BOARD (KVIB)

The Khadi & Village Industries Board is a statutory body mainly intended
for planning, organizing and implementation of programmes for the
development of Khadi and village industries. KVIB has its offices in all the
district of J&K State. The Board provides financial assistance to the
artisans, co-operative societies and institutions in the rural areas for
starting Khadi & Village industries. The rate of interest charged by KVIB for
village industries is very nominal and there is no interest on loans for
Khadi. KVIB finances only to those units, which are to set up in rural areas
of the state only. The activities eligible for assistance by the Board are
village leather industry, village oil industry, black smithy and carpentry, bee
keeping, fiber industry, willow wicker, soap, fruit preservation, cottage
match, gur, khand and lime, etc. The office of the KVIB is located at
Amphala, Jammu


1.7.11 SMALL INDUSTRIES CORPORATION (SICOP)

J&K Small Scale Industries Development Corporation Ltd. Was
established in 1975 with the main objective of aiding, assisting and
promoting SSI sector in the state of J&K. The main activities of SICOP for
the development of industries in J&K area:
To aid, council assists, finance, protect and promote the interests of
small-scale industries in the state.
To undertake procurement and distribution of various raw materials
whether imported or indigenous for supply to the SSI units.
To set up and manage raw material depots.
26

To work as stockiest in the state for Iron and steel materials, chemicals,
etc and to supply for the industrial units.
To undertake and provide marketing facilities to small-scale industries in
the state.
To acquire land for development of industrial states with a view to
providing basic infrastructural facilities.
And to maintain quality control testing centers for ensuring standard quality
of industrial products.

Raw material supply:
At present SICOP is engaged in procurement and distribution of the
following raw materials to the SSI Units of the state.
Iron and steel material from SAIL.
Plastic granules of different grades from IPCC.
Paraffin wax from IOC.
Structural steel.
Raw rubber and Chemicals.
Steam coal from coal India Ltd.
Wire rod from steel Authority of India.
Cement.
Another important activity of the corporation is development of industrial
estates. The details of the Industrial Estate developed and maintained by
SICOP are given in Annexures
The Corporation has set up two testing centers in each Industrial estate,
Gangyal Jammu and other at Industrial Estate, Zinakote, Kashmir. These
Centers are well equipped with required machinery. Besides these
centers, the corporation is planning to set up mini testing centers at major
districts of the State.
The MSE Units, which are interested to avail the marketing facility of
SICOP, are to be registered first with SICOP. The corporation made efforts
to procure supply order on behalf of SSI Units from industry departments
and other agencies within and outside the State.
The important products marketed through SICOP are given below:
- Wire products.
- Structural steel items
- AAC/ACSR conductors/Distributions Transforms.
- Steel & Wooden furniture.
- Fabrication items,
- Insecticides and pesticides.
- Angle Iron Poles, etc,
- Water fittings.
- PVC cable, storage tanks, located abrasives
- Electrical appliances.

SICOP also provides financial assistance under marketing assistance
scheme for the procurement of raw material for the execution of the supply
27

orders to be executed through SICOP. Under this scheme, financial
assistance to the tune of 75% of the value of the supply order is released
to the supplier of raw material at the request of SSI unit after fulfilling some
formalities.

1.7.12 STATE INDUSTRIAL DEVELOPMENT CORPORATIONS (SIDCO)

SIDCO was established in 1976 for the development of industries in the
State. It is one of the main sources of providing term finances to the
industries in J&K. The main activities can be broadly classified as follows:
1. To acquire land and establish industrial development areas and industrial
estate.
2. To provide and maintain infrastructural facilities in the Estates like power,
roads, sheds, water supply, and communication facilities.
3. To identify and develop potential growth centers in the state.
4. To provide term loan assistance through different schemes.
5. To develop industrial parks.

The Bari Brahamana Industrial Estate was developed by SIDCO in an
area of 5240 Kanals. This is the well-developed Indl. Estate and almost all
the important industries are located in this Indl. Estate. Besides, the
development of Bari Brahmana, Indl. Estate, SIDCO has also established
Export promotion industries parks (EPIP) in all-important commercial
centers of the state. The industrial Estates developed by SIDCO in J&K
State is discussed in Chapter VII.
J&K SIDCO is the nodal agency for developing food-processing industries
in J&K state {AGRICULTURE PROCESSED FOOD PRODUCTS EXPORT
DEVELOPMENT AUTHOUEITY (APEDA)}. It is implementing various
schemes for the development of the food processing in the state by
providing financial assistance.
INCENTIVES TO INDUSTRIES IN JAMMU & KASHMIR

The Government has notified a comprehensive package of incentives for
the State of Jammu & Kashmir as part of a New Industrial policy for the
State. The notification dated 14
th
June 2002 issued by the Department of
Industrial policy & promotion, Ministry of Commerce and industry, states
that Keeping in view the fact the State of Jammu & Kashmir lags behind
in industrial development, a need has been felt for structured
interventionist strategies to accelerate industrial development of the State
and boost investors confidence. The new initiatives would provide the
required incentives as well as an enabling environment for industrial
development, improve availability of capital and increase market access to
provide a fillip to the private investment in the State.

The package provides major fiscal incentives to new industrial units and
substantial expansion of existing units whereby new industrial units under
expansion set up in growth Centre, industrial infrastructure development
centers and other locations like industrial estates, parks, Export
28

processing Zones (EPZs), commercial estates, etc, are entitled to 100%
excise duty exemption for a period of 10 years from the date of
commencement of commercial production. All new industries in the
notified location would be eligible for capital investment subsidy @ 15% of
their investment in plant & machinery, subject to a ceiling of Rs. 30 lakh.
The existing units will be entitled to this subsidy on substantial expansion,
as defined. An interest subsidy of 3% on the working capital loan would be
provided to all new industrial units in notified locations for a period of 10
years after commencement of commercial production. This benefit would
also be extended to existing units in notified locations on expansion, as
defined, as well as to notified thrust industries.

The insurance premium to the extent of hundred per cent on capital
investment for a period of 10 years would be extended by the Central
Government to all new units and to existing units on substantial expansion.
Further, the present income tax exemption would continue as per the
existing dispensation applicable to Jammu & Kashmir. The State
Government may consider extending sales tax exemption to the units,
which avail of concessions under this policy.

The financing pattern for development of integrated industrial infrastructure
will change from 2:3 between Government of India (Gol) and Small
Industries Development Bank of India (SIDBI) to 4:1 and the Gol funds
would be in the nature of a grant, so as to provide the required
infrastructural support.

Other incentives include assistance for Design-cum-resource Centre for
footwear & leather Industry, leather goods and shoes as well as items of
fur which are being manufactured in the Small Scale Industry/Tiny sector
traditionally in Srinagar and Jammu. The central Government would make
an initial contribution of Rs.1 crore as grant for setting up a
Design/Resource Centre and National leather Development Programme
(NLDP) which would provide assistance for machinery, training and
salaries of professional. Under the National Development Programme
(NLDP) , exclusive assistance would be provided to market finished
leather products of the artisans of the State in the form of buyers sellers
meet and exhibitions.

The Ministry of Textiles will extend their package of assistance as
applicable to the North- Eastern Region, to the State of Jammu & Kashmir
on the same terms and conditions. According to the notification, Jammu &
Kashmir Development Finance Corporation (JKDFC) will be set up by the
Central Government with a one time provisions of Rs. 50 crores on the
lines of North East Development Financial Corporation. This corporation
will provide term loan, working capital and other infrastructural support in
the State of Jammu & Kashmir on the lines of NEDFI in the North East..
JKDFC would be designated as the Nodal Agency for routing the
subsidies/ incentives under various schemes notified under this policy.

29

The above concessions / subsidies will be available to all new units / existing
industrial units on their substantial expansion, in the notified industrial areas b the
Central Government and thrust industries irrespective of location.

THRUST AREAS


S.N
o.
Activity
1 Food Processing and Agro-Based Industries ( excluding conventional
grinding / extraction units ) such as :
Sauces Ketchup, etc.
Fruits Juices & Fruit pulp
Jams Jellies, Vegetable Juices, Puree, Pickles etc.
Fruit Waxing Packaging Grading
2 Leather Processing and Leather Goods
3 Tissue Culture
4 Silk Reeling Yarn & Yarn Spun from Silk Waste Woven Fabric of Silk or
Silk waste
5 Wool and Woven Fabric of Wool
6 Woven Fabrics of Cotton
7 Floriculture
8 Medicinal Herbs- Processing
9 Green House only Ladakh
10 Computer Hardware / Electronics ( Integrated Circuits and Micro
Assemblies)
11 Sports Goods & Articles and Equipment for General Physical Exercise
12 Auto Ancillaries
13 Eco Tourism Hotels, Houseboats, Resorts, Adventure and Leisure
Sports, Amusement Parks, Cable Car. Guest House only Ladakh
14 Handicrafts
15 Precision Engineering
16 Exploration of Minerals

According to the Notification, the ineligible industries under the policy are:
Cigarettes / Cigars of Tobacco, Manufacture Tobacco and Substitutes,
distillation / Brewing of Alcoholic Drinks and manufacture of branded Soft
Drinks and its Concentrates i.e. these industries are excluded for the
purpose of concessions under this policy.
1.8 PACKAGE OF INCENTIVES:-
1.8.1 CAPITAL INVESTMENT
Capital Investment shall mean and include investment on land/premium on
leased land, cost of all civil engineering works including buildings and sheds,
cost of plant and machinery, cost of installation of plant and machinery,
control panels, quality control equipment, cost of consultancy during the
execution of project and cost of technical know-how.
30

1.8.2 EFFECTIVE STEPS
Effective steps means one or more of the following steps
That 10% or more of the capital issued for the industrial unit has been
paid up.
That any part of the factory building required for manufacturing activity
has been constructed.
That a firm order has been placed for any plant and machinery required
for the industrial unit.
1.8.3 EXISTING STEPS
Existing unit means an industrial unit, which had gone into trial/commercial
production prior to 01-02-2004
1.8.4. FIXED CAPITAL INVESTMENT
Fixed capital investment means investment in land, building, plant and
machinery.
1.8.5. GOVERNMENT
Government means Government of Jammu & Kashmir.
1.8.6. INDUSTRIAL BACKWARD BLOCKS
Industrial Backward Blocks means the blocks with boundaries to be notified by the
State Government
1.8.7. NEW INDUSTRIAL UNITS
New industrial unit means an industrial unit which has started/gone into
trial/commercial production after 31-01-2004 and is formally registered.
1.8.9 PRESTIGIOUS UNIT
Prestigious unit means an unit having capital investment of Rs.25 Crores or
above and declared as Prestigious unit by the State Level Committee I
constituted for sanctioning Capital Investment Subsidy.
1.8.10 SUBSTANTIAL EXPANSION
Substantial Expansion means an existing unit which increases its installed
capacity, with prior approval of competent authority, in terms of the relevant
Government of India notification.

1.8.11 ELIGIBILITY
31

All existing and new industrial units unless otherwise explicitly provided
in this package and subject to fulfillment of such requirements as may
be specified by the Government from time to time shall be eligible for
the incentives.
Provided that wherever an identical scheme of Government of India
exists, the unit would draw the incentives from Government of India
scheme first, if eligible. The balance amount of the incentives, if any,
under the State Government scheme would be sanctioned if otherwise
eligible under the state scheme.
The incentives under this policy are provided under the discretionary
powers of the State Government. The Sate Government may decide to
amend, alter, delete or revise any or all of the incentives notified under
this policy and no claim on account of such a decision will be
entertained.
The Industrial Policy shall cover all the new industrial units that may be
established in the State. In respect of units where the promoter may
have taken effective steps for implementation of the project as on 01-
02-2004 and as such may claim to avail incentives under the old
package which was in force immediately before announcement of this
policy, he will be given option to do so. However, such option shall
have to be explicitly communicated to the Director, I&C within 3 months
of announcement of this policy. This option shall, however, be not
applicable to tax related incentives, for which the new policy will apply.
1.8.12 LAND ALLOTMENT
The government shall allot land on long lease of 90 years in the industrial
estates and developed areas on first come first serve basis. In case of large
area requirements, land may be acquired in specific locations selected by the
entrepreneur, and allotted on lease.
The allotment of land/industrial plots/sheds and flats shall be on lease basis
for a period of 90 years.
The rent charged for the period of lease shall be invested in maintenance of
facilities in the industrial estate. In case of lands outside the industrial estates,
where no maintenance is required to be done by any Government Agency,
only a nominal lease rent shall be chargeable if the entire expenditure on the
cost of land and its development has been incurred by the promoter
Premium rates shall be notified by the Government from time to time and shall
not change after the land has been allotted to the promoter and a lease deed
signed by him after paying the amount of premium. The current rates of
premium are as follows:

S.No. Name of the Districts Rate of Premium
1 Jammu, Udhampur , Samba, a) Rs. 2 Lakh per Kanal for
32

Kathua, Srinagar, Budgam ,
Anantnag, Pulwama
plot not exceeding 4 Kanal
b) Rs. 3 lakhs per Kanal for a
plot exceeding 4 Kanals .
2 Poonch, Rajouri, Doda, Kishatwar
, Reasi, Ramban, Ganderwal,
Baramulla, Kulgam, Kupwara,
Bandipora, Shopian , Leh & Kargil
a) Rs. 1 Lakh per Kanal for
plot not exceeding 4
Kanals
Rs. 1.5 Lakh per Kanal for plot
exceeding 4 Kanals.

A rent of Rs 3000/- per Kanal will be charged for existing as well
future alottees.

For this purpose the industrial estates/growth centres/export promotion parks etc.
have been classified as follows :
A CLASS
Bari Brahmana, Kartholi, Gnagyal, Birpur, Digiana, Zainakote, Barzulla, and
Baghe-Ali-Mardhan Khan.
B CLASS
Rangreth, Khunmoh, Zakura and Kathua.
C CLASS
All other Estates which are not included in A&B class above.
d) Land allotment on lease shall be transferable subject to some stipulations and also
subject to the condition that the transferee shall not use the land for any purpose other
than setting up or running another industrial unit in the area with due statutory
clearances.
1.8.13 CAPITAL INVESTMENT SUBSIDY (CIS) & FINANCIAL SUPPORT ON
INVESTMENT
1. Government of India has announced a new scheme of capital investment
subsidy for the State of Jammu & Kashmir. The existing Capital Investment
Subsidy (CIS) of the State government shall stand replaced by the Government
of India scheme for CIS.
2. In the Industrially Backward Blocks, which will be notified separately, the
existing state government scheme would continue. However, in such Blocks the
industrial units will first draw CIS of the Government of India scheme, if
applicable. Balance amount, if any, as per State Government scheme would be
sanctioned by the competent authority, if other-wise eligible under the state
scheme.
3. In such locations (which do not fall within backward blocks) where the CIS
scheme of GOI does not apply, the State Government will extend the benefits
as per the norms of Central Scheme.

1.8.14 CIS APPLICABLE TO THE NOTIFIED BACKWARD BLOCKS OF THE
STATE
a) CIS shall be available if the item of manufacture does not figure on the
negative list.
33

b) CIS shall be available to the new SSI, Medium and Large units, @ 30% of
the capital investment subject to upper limit of Rs.30 lakhs
c) In case of prestigious unit, the upper limit of CIS shall be Rs. 60 lakhs.
d) In case of the thrust areas, the upper limit of the CIS shall be Rs.45 lakhs
and Rs. 75 lakhs in case the unit also falls in the prestigious category.
In areas where CIS under the central scheme is available the Government
does not want to place the thrust area units, prestigious units and prestigious
units in thrust areas in a disadvantageous position. In such areas if the
eligible amount of CIS under the central scheme exceeds Rs.30 lakhs for an
industrial unit, which is maximum limit under that scheme, the State
Government shall provide the amount exceeding Rs.30 lakhs subject to a
ceiling of Rs.15 lakhs, Rs.30 lakhs and Rs.45 lakhs, in case of thrust area
units, prestigious units and prestigious units in thrust areas, respectively.
In the entire state, 75% subsidy shall be allowed on cost of construction of a
captive tube-well or building a captive water lifting plant incurred by a
prestigious unit in any of the thrust areas. The maximum amount of subsidy
shall be Rs.22.50 lakhs. This shall be in addition to the financial limits for CIS
prescribed above.
1.8.15 MODERNISATION OF EXISTING UNITS
With a view to encourage expansion of existing small scale industrial units, to
enable it to achieve higher productivity, energy efficiency and better
environment protection, and thus improve its sustainability in the competitive
environment, capital investment subsidy of the state government will be
applicable to such units all over the state subject to a limit of Rs.30 lakhs.
Units availing incentives under the definition of substantial expansion shall
not be entitled to this. Application for expansion must be submitted to the
Director, Industries and Commerce, in the prescribed form, obtainable from
his office and only after the scheme is approved by a committee consisting of
Principal Secretary (Finance), Principal Secretary (Planning) and Principal
Secretary (Industries and Commerce), the applicant shall commence work
thereon. Approval and disbursement of the incentives will be done on the
same pattern as the CIS of the state government.
1.8.16 BRAND PROMOTION
In order to help such manufacturers of consumer products who are in a highly
competitive market, the government will provide assistance to them in
promoting brands within and outside the state. The assistance will be in the
shape of subsidy at the rate of 50% of expenses incurred in the first year
subject to a limit of Rs.20 Lakhs, 30% of expenses incurred in the second
year, subject to a limit of Rs. 15lakhs and 10% of expenses incurred in the
third year subject to a limit of Rs.10 lakhs. Application is prescribed form
obtainable from the office of the Director Industries and Commerce must be
submitted prior to undertaking the activity. Such applications shall be
produced before a committee consisting of the Principal Secretary (Finance),
34

Principal Secretary (Planning) and Principal Secretary (Industries and
Commerce), and only after the scheme is approved, the applicant may begin
its implementation, if the incentive is to be availed. A system of monitoring
shall be instituted and if the applicant deviates from the approved scheme,
without prior approval, the incentive will be denied to him and the moneys
already paid to him may be recalled at the discretion of the approving
authority.
1.8.17 POWER TARIFF/DG SETS
Department shall revise and announce the tariff from time to time. Keeping in
view the policy of he government to encourage the development of industry in
the State and till such time as assured power supply is made available to
industrial units 100% subsidy shall be allowed on new DG sets form 10KW to
1000 KW capacity purchased from reputed/standard companies subject to the
maximum limit of Rs. 25 Lakhs. The subsidy shall be available to he unit after
it has been verified that the DG set has been actually installed.
The amount of subsidy on purchase of DG set 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.
50% of the amount of subsidy on DG set shall be paid on verification of
installation and the remaining 50% shall be paid after expiry of one year of
installation.
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.
The amount of subsidy claimed as part of Government of Indias CIS scheme
for this item shall be deducted from the amount to be calculated under the
state government scheme.
Government shall allow setting up of Captive Power Generating units and also
mini/micro power generating unit anywhere in the state, subject to obtaining
usual clearances required including from the State Pollution Control Board.
There shall be no electricity duty/state excise on generation of electrical
energy through such 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
consumer(s). In case the energy thus generated is given to the State
Government at the point of production, the promoter shall be eligible to draw
an equivalent amount of energy for his own bona fide industrial purpose, from
the PDD anywhere else in the State. If his requirement is less than what is
generated by him, the excess power can be sold to the state as per the policy
of Power Development Department.
35

1.8.18 PRICE /PURCHASE PREFERENCE
Upto 15% Price Preference shall be available on the landed cost of the
product to the local MSMEs, in all government purchases. The price
preference shall also apply in case of any goods purchased by the public
sector undertakings/boards purchased for their own non-commercial use.
Explanation :
(i) A local MSE unit will be entitled to up to 15% price preference I lowest
tendered rates by an out side unit, which means that if the rates quoted by
a local SSI unit is within the difference of 15% between the rates as
quoted by local units and lowest outside tender, the orders shall be placed
with local unit. In other words a unit holder shall be entitled to payment as
per his quoted rate provided the same is within the maximum limit of 15%
of the lowest quoted rate by an outside unit holder.
(ii) The price preference shall not cover items purchased by the public sector
undertakings and boards who may use such goods as raw material,
consumables, or packaging materials, which are, in turn meant to be sold
on commercial basis either to the government departments or to the private
consumers or to the private consumers or in the open market. The
Government to the local SSI unit departments/public sector under takings
Board etc. shall give preference to the local SSI unit over an outside state
unit for purchase of items if otherwise of equivalent quality and if it has
enough registered capacity.
iii) Nothing contained in a proceeding 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 organizations of the Government such as JKI, JKML, SIDCO,
Agro Industries Corporation, J&K Handloom Development Corporation, KVIB
etc. whether without or after inviting tenders.
iv) In all other cases, where the price preference applies, the following
procedure shall be followed, in suppression of any other government
departmental instructions, if issued to the contrary, to encourage the
sustainability and growth of SSIs in the State :-
a) 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.
b) 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, duly verified
and certified by the user department, and if the rate quoted by the SSI unit is
within 15% of the lowest rate quoted by any other tender not being another
local registered SSI unit, then the Purchase Committee shall decide to place
order on such local registered SSI units without further negotiating the price. If
the local SSI unit has the requisite registered capacity to meet the tendered
requirement.

36

c) If the rate quoted by the local registered SSI unit(s) is not within 15% of the
Committee may negotiated rate with the local registered unit (s) and place
orders on such negotiated rate.
d) No tender from a local registered SSI unit shall be rejected in contravention of
the aforementioned instruction. In case the purchase committee faces any
difficulty in carrying out these instructions, in will refer the matter to the I&C
Department in the secretariat and the decision of the Department in the
matter shall be final and binding on the purchase committee/the department.
e) If a local registered SSI unit is on rate contract with the DGS&D, DG QA,
NSIC etc. for a particular item needed by a Government department, it may
purchase the item from such SSI unit without inviting tenders.
f) It would be lawful for any local registered SSI unit to quote through SICOP or
to seek supply order through SICOP or to request/authorize SICOP to
represent its case before the purchasing department. In all cases, SICOP
shall be treated at par with the SSI unit or units whose case it may be
representing for all matters connected with the finalization of the contract,
delivery of supplies and the price preference.
g) No purchasing department shall force or cause any local registered SSI unit to
get more quality tests conducted at its own cost if such limit is registered with
the BIS, DG S&D, DG QA etc. for ISI/ISO 9000/FPO mark.
h) No purchasing department shall tender for purchase of any item with
branded/patented name of any manufacturer or supplier if such items of
acceptable specifications are available from the local industry.
i) 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 sanctioned.
j) 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.
1.8.19 EARNEST MONEY SECURITY DEPOSIT
a) SSI unit shall be required to pay only 50% of the amount of earnest money
prescribed by the tendering authority or Rs.5000 whichever is lower.
b) Tender documents shall also be supplied to the SSI units @ 50% of the
price of the documents or Rs.100 whichever be lower.
c) SICOP shall be treated at par with the SSI units for the purpose of the
aforementioned provisions

1.8.20 STAMP DUTY
Mortgage deeds in favour of the financing institutions required to be signed by
the promoter, shall be exempted from payment of stamp duty. The state
government has already enabled equitable mortgage in the state.
37

1.8.21 EXEMPTION OF COURT FEE
Exemption from court fee for registration of documents relating to lease of
land will be granted to registered industrial units.
1.8.22 TOLL TAXES
i) There will be no additional toll tax on the raw materials, fuel and
consumables, procured from outside the state by the existing or new SSI units
fill 31-01-2015 except for items brought on the negative list from time to time.
ii) There will be no additional toll tax on finished goods manufactured by the
existing or new SSI, Medium and Large units and sent outside the state upto
31-03-2015 except for items brought on the negative list from time to time.
iii) There will be no additional toll tax on the Raw materials, fuels,
consumables brought from the existing new medium and large units upto 31-
03-2015 except in case of items brought on the Negative list from time to time.
iv) There will be no additional toll tax on components, machinery, plant and
other equipments procured from outside the state for building the factory, for a
period of five years from the date of registration of the unit in SSI, Medium or
large sector.
v) There will be no additional toll tax on 100% export oriented units on the
goods exported under proper export documents from the state to any foreign
country.
vi) There will be no additional toll tax on empty containers brought into the
state which are used for stuffing products of industry for export out of the
state.
1.8.23 GENERAL SALES TAX
The State Government is proposing to implement Value Added Tax (VAT).
The existing GST exemption will continue for existing and new units till VAT
is implemented in the state or up to 31-3-2015, whichever is earlier, except
for items brought on the negative list from time to time. However, GST
exemption on the raw material procured locally will be available only to the
Small Scale Industrial Units.
1.8.24 CENTRAL SALES TAX
The existing and new SSI, Medium & Large industrial units shall be exempt
from charging and payment of CST on sale of their finished goods outside the
state upto 31-3-2015 except for the items on the negative list.
1.8.25 SPECIAL PROVISION FOR PRESTIGIOUS UNITS
Prestigious units shall avail of full exemption from payment of GST (Till VAT is
implemented)/CST and additional toll tax until 31-3-2015 or until such amount
of exemption reaches the levels of 150% of capital investment in the project
38

whichever occurs earlier. It may be clarified that negative lists issued for
various tax related incentives for medium and large industries shall also be
applicable mutatis mutandis to prestigious units.
1.8.26 INTEREST SUBSIDY
i) The Government of India has announced a new scheme for Interest subsidy
in the state of Jammu & Kashmir. The existing incentive of Interest subsidy of
the State Government will be replaced by the Government of India scheme,
except for existing and any other new units which are not otherwise eligible for
claim or interest subsidy under the Government of India scheme.
ii) 3% subsidy shall be payable on the working capital facilities available from
the commercial banks to all existing units for the remaining period of their
eligibility, subject to the conditions prescribed, under the Government Order
No. 202-Ind of 1998 dated 27-5-1998.
iii) This incentive will be extended to any new unit not covered by the Central
Government Package by the state Government, on the same terms as
contained in the Central Package.
iv) No interest subsidy shall be available on penal interest or on default
payments.
1.8.27 TESTING EQUIPMENT
100% Capital subsidy shall be provided by the Government on installation of
Testing Equipment, subject to a maximum amount of Rs.25 Lakhs and also
restricted to 25% of the total capital investment if the cost of testing
equipment exceed 25% of the total investment provided that the same is
installed with in 31-3-2015.
ii) The incentive shall be disbursed only after the unit availing this incentive
obtains a national/ international quality mark.
iii) To the extent incentive for such equipment is availed under the CIS
scheme of Government of India, deductions will be made from the amount
due under the state scheme
1.8.28 AIR FREIGHT SUBSIDY
Air Freight subsidy shall be available on finished goods and raw materials for
any destination (a) 50% subject to a maximum of Rs.5 Lakhs per year per
unit
1.8.29 30% SUBSIDY ON POLLUTION CONTROL EQUIPMENT
30% subsidy shall be extended for purchase of pollution control equipment
subject to ceiling of Rs.20.00 lac per unit and this will be in addition to the
entitlement of CIS unde G.O.I scheme if it exceeds Rs.30.00 lacs limit of CIS
notified by G.O.I. If subsidy on such equipment is availed under CIS
notification of GOI, to that extent,
39

1.8.30 INTEREST SUBSIDY FOR TECHNOCRATS
5% interest subsidy on term loan shall be available for Engineering
Graduate/MBAs/postgraduates on term loan availed from financing
institutions.
1.8.31 RESEARCH & DEVELOPMENT (R&D)
i) 50% subsidy shall be available on expenditure incurred on R&D through any
reputed organisation, in the public or private sector, duly approved by the
government, for any project undertaken on sponsorship of any existing or
new unit subject to a maximum of Rs.5 Lakhs for each such project duly
approved by the Government.
ii) 25% subsidy shall be available on R&D expenditure of any unit on non-
recurring items of expenditure subject to prior approval by the Government
upto a maximum limit of Rs. 5 Lakhs.
1.8.32 HUMAN RESOURCE DEVELOPMENT
i) 50% of the cost of training shall be borne by the Government subject to Rs.
5000 per trainee and subject to Rs. 1 lakh per annum for any unit for a period
of five years. In case of women trainees the corresponding figures shall be
75%, Rs.7,500 and Rs.1.50 lakhs respectively.
ii) For programmes of skill development leading to employment of trainees,
50% of the cost of training shall be borne by the Government on approved
programmes subject to maximum of Rs. 5 lakhs per unit. In case of women
trainees, the corresponding figures would be 75% and 7.5 lakhs.












40

MAJOR CLUSTERS

Office is giving main thrust on Clusters in the state of Jammu & Kashmir.
Following progress has been made under Cluster Development :
S.No Name & Type
of Cluster
Place of
Cluster
Progress/Remarks
1 Pashmina
Shawl
Basholi /
Kathua
Officers of this Institute visited Basholi,
Kathua and other places for interaction
with the cluster actors in connection with
the preparation of DSR. The DSR was
prepared by this Institute with the
assistance of other concerned agencies
2 Cricket Bat
Cluster,
Jammu
Jammu Interaction & Motivational meetings were
held with the bat manufacturers of
Jammu for initiating cluster development
programme for their members. Finally
the cluster had become ready to avail it.
A proposal for the principle approval of
the cluster is under submission
3 Carpet
Cluster
Srinagar Artisans/Entrepreneurs have been
motivated for availing the cluster
development information for the
development of their members. Action is
in progress
4 Cricket Bat
Cluster
Sather
Sangam,
Anantnag
Wood Seasoning plant is not yet
commissioned. SPV is yet to be formed.
A function manager of DIC, anantnag is
the CDE of the cluster
5 Wooden &
Joinery
Furniture
Srinagar Land has been acquired at Om Pora near
Srinagar. SPV has been formed. CFC
proposal is under finalization
6 KVIB is in process for taking up five clusters in the state. The officers of
KVIB had meetings and were assisted by the Director, MSME-
Development Institute, Jammu (J&K)
















41

MAJOR INDUSTRY ASSOCIATIONS


Sr.
No.
Name of SSI Association Name of the office
bearer
Tel. No.
1. Chamber of Commerce and
Industries, Residency Road,
Srinagar (Kmr)
Sh. Nazir Ahmed Dar,
President
0194-2452517,
2455416,
2482176
Mob.
94190 05378
2. Federation Chamber of
Commerce & Industry,
Sanat Nagar Industrial
Estate, Barzulla, Srinagar
Sh. Shakeel Kalender,
President
0194-2430775
Mob.
94190 18491
3. Industrial Association,
SIDCO Complex, Bari
Brahmana, Jammu
Sh. Davinder Mahajan,
President
Mob.
94191 90440

4. Industrial Association,
Gangyal, Jammu
Sh. T.S.Reen, President 0191-24837781,
2482249
Mob.
94191 01503

5. Industrial Association, Bir
Pur, Bari Brahmana, Jammu
Sh. Ajay Gupta,
President
01923-220117
Mob.
94191 01503

6. Chamber of Commerce &
Industry, Panama Chowk,
Jammu
Sh. Y.S.Sharma,
President
0191-2473333,
2472255
Mob.
94191 98282
7. Chamber of Industries &
Commerce Kashmir,
Bishamber Nagar, Srinagar
Sh. Muzafer Khan,
President
0194-2475336
Mob.
99065 14000




















42

CHAPTER 2
INSTITUTES ACTIVITIES

During the year the Institute carried out following activities
Activity
2013-14
Target Achievement
IMCs 29 29
EDPs 08 08
ESDPs 23 23
MDPs 07 07
BSDPs 0 0
SDP - 02
Sensitization programme on Bar
Coding
02 02
VDP 07 04
MSE-CDP 01 01
Packaging for Export 0 0
Workshop on IPR 01 01
Awareness Prog. To acquire
product certification license from
National/International Bodies
0 0
Seminar on QMS/QTT 01 0
TOTAL 79 78


2.1 INDUSTRIAL MOTIVATIONAL CAMPAIGNs

The Institute organized 29 IMCs during the year in association with different Industrial
associations and at some remote areas of almost all the Districts of the State. Month-
wise details are given in the table below.

MONTH WISE DETAILS OF CONDUCTED IMCs

P
r
o
g
r
a
m
m
e
MONTH



Total
A
p
r
i
l
,
1
3

M
a
y
,
1
3

J
u
n
e
,
1
3

J
u
l
y
,

1
3

A
u
g
,

1
3

S
e
p
t
,

1
3

O
c
t
,

1
3

N
o
v
,

1
3

D
e
c
,
1
3

J
a
n
,

1
4

F
e
b
,

1
4

M
a
r
,

1
4

IMCs - - - - 07 07 07 - 08 - - - 29














43

CATEGORY-WISE PARTICIPANTS DETAIL
Progra
mme
PARTICIPANTS
SC ST Women PH Minority OBC Others Total
IMCs
1188 462 446 0 140 0 617 2407





COMPARISON OF CONDUCTED IMCs DURING 2011-12 & 2012-13
PARAMETER 2012-13 2013-14 % age Improvement
Nos. of Programmes 29 29 0.%
Nos. of Persons Participated 2439 2407 (-)1.31%
Sanctioned Amount 2,32,000/- 2,32,000/- 0%
Expenditure Incurred in Rs. 2,30,924/- 2,31,177/- 3.19 %
% of funds utilized 99.79% 99.53% 0.10 %
Average
Participant/Programme
84 83 (-)1.19 %
% of SC/ST participants 20% 68.55% 342.75 %
% of Women participants 28.49% 18.52% (-)34.99%

































44

PHOTO GALLERY & PRESS CLIPPINGS (IMCs)















45

2.2 ENTREPRENEURSHIP DEVELOPMENT PROGRAMME

08 EDPs were organized by the Institute during the Action Plan year
Including 03 stipendiary programmes for SC, ST & Women
&Physically Handicapped Candidates. The statistical detail is as
under.




MONTH WISE DETAILS OF CONDUCTED EDPs

P
r
o
g
r
a
m
m
e

MONTH
T
o
t
a
l

A
p
r
i
l
,
1
3

M
a
y
,
1
3

J
u
n
e
,
1
3

J
u
l
y
,
1
3

A
u
g
,
1
3

S
e
p
t
,

1
3

O
c
t
,

1
3

N
o
v
,

1
3

D
e
c
,
1
3

J
a
n
,

1
4

F
e
b
,

1
4

M
a
r
,

1
4

EDPs
- - - - 01 01 03 01 02 - - - 08


CATEGORY-WISE PARTICIPANTS DETAIL

Programme
PARTICIPANTS
SC ST Women PH Minority OBC Others Total
EDPs 61 72 125 0 0 02 51 186

COMPARISON OF CONDUCTED EDPs DURING 2012-13 & 2013-14

PARAMETER 2012-13 2013-14 % age
improvement
Nos. of Programmes 09 08 (-)11.11%
Nos. of Persons Participated 230 186 (-)19.13%
Sanctioned Amount 1,92,500/- 1,78,750/- (-)7.14%
Expenditure Incurred in Rs. 1,92,426/- 1,78,475/- (-)7.25%
% of funds utilized 99.96 % 99.84% (-)0.12%
Average Participant/Programme 25.55 23.25 (-) 2.3%
% of SC/ST participants 80.43 % 71.50% (-)8.53%
% of Women participants 56.95 % 67.20% 10.25%












46

PHOTO GALLERY &PRESS CLIPPINGS (EDPs)



































47


2.3 ENTREPRENEURIAL SKILLED DEVELOPMENT PROGRAMMES
The Institute organized 29 Numbers of Entrepreneurship Skilled Development
Programme on various topics such as Software Development, Plumbing &
sanitary fittings, Welding Practices, Assembling Repair & maintenance of AC,
Computer Hardware & Networking, CAD, web Designing, DTP, Screen & Offset
Printing, Repair & Maintenance of Motor Vehicles, cutting & Tailoring, soft Toys
Manufacturing, Mobile Repairing, Dress Making & Biotechnology etc


MONTH WISE DETAIL OF CONDUCTED ESDPS



P
r
o
g
r
a
m
m
e

MONTHS
T
o
t
a
l

A
p
r
i
l
,
1
3

M
a
y
,
1
3

J
u
n
e
,
1
3

J
u
l
y
,

1
3

A
u
g
,

1
3

S
e
p
t
,

1
3

O
c
t
,
1
3

N
o
v
,
1
3

D
e
c
,
1
3

J
a
n
,

1
4

F
e
b
,

1
4

M
a
r
,

1
4

ESDPs
- - - 03 04 02 04 01 02 06 01 - 23


DETAILS OF PARTICIPANTS OF ESDP PROGRAMMES


Programme PARTICIPANTS
SC ST Women PH Minority OBC Others Total
ESDPs 202 149 146 02 16 12 146 528



COMPARISON OF CONDUCTED ESDPs DURING 2012-13 & 2013-14



PARAMETER 2012-13 2013-14 % age
improvement
Nos. of Programmes 31 23 (-)25.80%
Nos. of Persons Participated 742 528 (-)28.84%
Sanctioned Amount 21,03,750 14,92,500 (-)29.05%
Expenditure Incurred in Rs. 19,00,299 14,24,827 (-)25.02%
% of funds utilized 90.32% 95.46% 5.41%
Average
Participant/Programme
24 22.95 (-)1.05%
% of SC/ST participants 84.23% 66.47% (-)17.75%
% of Women participants 32.88% 27.65% (-)5.22%


48


PHOTO GALLERY &PRESS CLIPPINGS (ESDPs)
















































49

2.4 MANAGEMENT DEVELOPMENT PROGRAMMES

The Institute organized 07 Nos. of Management Development
Programme (MDP) on Human Resources Management and Supply chain
Management with different Unit holders in the state of Jammu & Kashmir

DETAILS OF PARTICIPANTS OF MDP PROGRAMMES


Programme PARTICIPANTS
SC ST Women PH Minority OBC Others Total
ESDPs 41 37 55 - - 04 73 155


MONTH WISE DETAIL OF CONDUCTED MDPs


P
r
o
g
r
a
m
m
e

MONTHS
T
o
t
a
l

A
p
r
i
l
,
1
3

M
a
y
,
1
3

J
u
n
e
,
1
3

J
u
l
y
,

1
3

A
u
g
,

1
3

S
e
p
t
,

1
3

O
c
t
,
1
3

N
o
v
,
1
3

D
e
c
,
1
3

J
a
n
,

1
4

F
e
b
,

1
4

M
a
r
,

1
4

MDPs
- - - - - - - - 02 01 02 02 07


COMAPRISON OF CONDUCTED MDPs DURING 2012-13 & 2013-14

PARAMETER 2012-13 2013-14 % age
improvement
Nos. of Programmes 07 07 0%
Nos. of Persons Participated 151 155 2.58%
Sanctioned Amount 1,40,000/- 1,40,000/- 0%
Expenditure Incurred in Rs. 1,39,227/- 1,39,641/- 0.2%
% of funds utilized 99.44% 99.74% 0.30%
Average
Participant/Programme
22 22.14% 0.14%
% of SC/ST Participants 0 50.32% 52.32%
% of women Participants 7.55% 35.48% 27.93%






50

PHOTO GALLERY &PRESS CLIPPINGS (MDPs)


















51

2.5 BUSINESS DEVELOPMENT PROGRAMME

During the financial year 2013-14 no Business Development Programme
was allocated to this Institute.


- - - - - - - - - -







MONTH WISE DETAIL OF CONDUCTED BSDP

P
r
o
g
r
a
m
m
e

MONTH
T
o
t
a
l

A
p
r
i
l
,
1
2

M
a
y
,
1
2

J
u
n
e
,
1
2

J
u
l
y
,

1
2

A
u
g
,

1
2

S
e
p
t
,

1
2

O
c
t
,

1
2

N
o
v
,

1
2

D
e
c
,
1
2

J
a
n
,

1
3

F
e
b
,

1
3

M
a
r
,

1
3

BSDP
- - - - - - - - - - - - 0

CATEGORY WISE PARTICIPANTS DETAIL

Programme PARTICIPANTS
SC ST Women PH Minority OBC Others Total
BSDP - - - - - - - -


COMAPRISON OF CONDUCTED BSDPs DURING 2012-13 & 2013-14

PARAMETER 2012-13 2013-14 % age
improvement
Nos. of Programmes 0 0 -
Nos. of Persons Participated 0 0
Sanctioned Amount 0 0
Expenditure Incurred in Rs. 0 0
% of funds utilized 0 0
Average
Participant/Programme
0 0
% of SC/ST Participants 0 0 -
% of Women Participants 0 0










52

2.6 INTELLECTUAL PROPERTY RIGHT (IPR)

This Institute in association with Shri Mata Vaishno
Devi University, Katra organized One Day Sensitization Programme on
Intellectual Property Right on 2
nd
February, 2014 at Shri Mata Vaishno
Devi University, Katra

COMAPRISON OF CONDUCTED IPRs DURING 2012-13 & 2013-14

PARAMETER 2012-13 2013-14
Nos. of Programmes 01 01
Nos. of Persons Participated 65 161
Sanctioned Amount 1,00,000/- 1,00,000/-
Expenditure Incurred in Rs. 99,993/- 88,669/-
% of funds utilized 99.99% 88.66%
% improvement of achievement 100% 100%
Average Participant/Programme 65 161

































53

PHOTO GALLERY (IPR)













































54


2.7 SKILL DEVELOPMENT PROGRAMME (SDP)

The Institute has Common Facility Workshop at Srinagar as well as at
Jammu. During current financial year i.e 2013-14 02 No. of Skill
Development Programmes were conducted w.e.f 10-05-2013 to 09-11-
2013 and 01-10-2013 to 31-03-2014 where in 11 students were trained in
Machine Shop and Welder trade. During the programmes revenue to the
tune of Rs. 8,800/- (Rupees Eight thousand eight hundred only) were
realised


MONTH WISE DETAIL OF CONDUCTED PROGRAMME

P
r
o
g
r
a
m
m
e

MONTH
T
o
t
a
l

A
p
r
i
l

1
3

M
a
y
,
1
3

J
u
n
e
,
1
3

J
u
l
y
,

1
3

A
u
g
,
1
3


S
e
p
t
,

1
3

O
c
t
,
1
3

N
o
v
,

1
3

D
e
c
,
1
3

J
a
n
,

1
4

F
e
b
,

1
4

M
a
r
,

1
4

SDP
- 01- - - - - 01 - - - - - 02


2.8 SENSETIZATION PROGRAMME ON BAR CODING


The Institute organized Two No. of 1 day Sensitization Programme on Bar
Coding at MSME-Development Institute, Jammu on 31
st
August, 2013 and at
Industrial Estate, Chotipora, Handwara, Kashmir on 13
th
October, , 2013.
The objective of the programme was to aware the Entrepreneurs about the
use of Bar Coding and also to motivate them to avail the benefit under
MSME Bar Code reimbursement Scheme. This Institute realized revenue of
Rs. 4,300/- (Rupees Four thousand three hundred only) from the participants



COMAPRISON OF CONDUCTED SENSETIZATION PROGRAMME ON BAR
CODING DURING 2011-12 & 2012-13


Parameter 2012-13 2013-14 %age of
improvement
No. of Programmes 02 02 -
Nos. of Persons Participated 40 43 6.97%
Sanctioned Amount 60,000/- 60,000/- -
Expenditure Incurred in Rs. 52,379/- 52,110/- (-)0.51%
% of funds utilized 87.29% 86.85% (-)0.44%
Revenue 4,000/- 4,300/- 6.97%




55

PHOTO GALLERY (BAR CODE AWARENESS PROGRAMME)

















































56

2.9 AWARENESS PROGRAMME TO ACQUIRE PRODUCT CERTIFICATION
LICENSE FROM NATIONAL/INTERNATIONAL BODIES


No Awareness Programme on to acquire Product Certification from National
& International Bodies was allocated during the current financial year.

COMPARISION OF AWARENESS PROGRAMME ON PRODUCT
CERTIFICATION LICENSE FROM NATIONAL/INTERNATIONAL BODIES
DURING 2012-13 & 2013-14

Parameter 2012-3 2013-14 %age of
improvement
No. of Programmes 01 -
Nos. of Persons Participated 35
Sanctioned Amount 37,500/- -
Expenditure Incurred in Rs. 13,125/-
% of funds utilized 35%
Revenue -

2.10 AWARENESS PROGRAMME ON PACKAGING FOR EXPORT

No Awareness Programme on Packaging for Export was allocated during
the current financial year.



COMPARISION OF AWARENESS PROGRAMME ON PACKAGING FOR
EXPORT DURING 2012-13 & 2013-14

Parameter 2012-13 2013-14 %age of
improvement
No. of Programmes 01 01 -
Nos. of Persons Participated 20 20
Sanctioned Amount 38,000/- 38,000/-
Expenditure Incurred in Rs. 37,850/- 37,850/-
% of funds utilized 99.60% 99.60%
Revenue 2,000/- 2,000/-









57

2.11 VENDOR DEVELOPMENT PROGRAMME (NATIONAL LEVEL)

This Institute could not organize one day National Level Vendor
Development Programme during the current financial year due to non
availability of Man Power as all the officers were already engaged with other
Training programmes.

COMPARISION OF VENDOR DEVELOPMENT PROGRAMME(NATIONAL
LEVEL) DURING 2012-13 & 2013-14

Parameter 2012-13 2013-14 %age of
improvement
No. of Programmes 01
0
4,50,000/-
0
0
01 -
Nos. of Persons Participated 0 -
Sanctioned Amount 4,50,000/- -
Expenditure Incurred in Rs. 0 -
% of funds utilized 0 -
Revenue 0 0 -

2.12 VENDOR DEVELOPMENT PROGRAMME (STATE LEVEL)

This Institute organized 04 No. of Vendor Development Programme (State
Level) at nhpc, Jammu, BBIA, Bari Brahmana, Jammu , Indian Institute of
Intigrated Medicines, Srinagar and at Craft Development Institute, Srinagar
on 25-02-2014, 26-02-2014, 10-03-2014 and 11-03-2014 respectively.
There were a gathering of 51 Unit holders at Jammu and 56 unit holders at
Srinagar. An amount of Rs. 14,535/- (Rupees Fourteen thousand five
hundred thirty six only) was realized as revenue

COMPARISION OF VENDOR DEVELOPMENT PROGRAMME DURING
2012-13 & 2013-14

Parameter 2012-13 2013-14 %age of
improvement
No. of Programmes 06
55
4,50,000/-
29,798/-
6.62%
06 -
Nos. of Persons Participated 107 51.40%
Sanctioned Amount 4,50,000/- -
Expenditure Incurred in Rs. 85,253/- 65.04%
% of funds utilized 18.94 12.32%
Revenue 0 14,535/- -







58

PHOTO GALARY OF STATE LEVEL VDP










































59

2.13 REIMBURSEMENT UNDER ISO-9000/QMS SCHEME


The Institute reimbursed the expenditure incurred by 02 units to acquire
ISO 9000 / ISO 14000 Certifications. The details are as given below. The
Year-Wise details of units who were reimbursed under the scheme is
appended as Appendix-III

2012-13 2013-14
Brought Forwarded
Cases of previous
year
0 0
Application received
during the year
01 02
Units Reimbursed
during the year
01 02
Cases closed during
the year
0 0
Total Sanction 30,000/- 1,30,000/-
Total Reimbursement 30,000/- 81,000/-
% of funds utilized 100 % 62.30%

2.14 REIMBURSEMENT UNDER PRODUCT CERTIFICATION SCHEME


The Institute reimbursed the expenditure incurred by 03 units to acquire
Product Certifications. The details are as given below. The Year-Wise
details of units who were reimbursed under the scheme is as follows

2012-13 2013-14
Brought Forwarded
Cases of previous
year
0 0
Application received
during the year
02 03
Units Reimbursed
during the year
02 03
Cases closed during
the year
0 0
Total Sanction 55,050/- 2,00,000/-
Total Reimbursement 55,050/- 1,43,211/-
% of funds utilized 100 % 71.60%



60

2.15 REIMBURSEMENT UNDER MDA SCHEME

The Institute reimbursed the expenditure to the tune of Rs. 32,600/-
incurred by 01 unit holders on account of their participation in Italia
Exhibition which was held during December, 2012 to acquire Product
Certifications. The details are as given below. The Year-Wise details of
units who were reimbursed under the scheme is as follows :

2012-13 2013-14
Brought Forwarded
Cases of previous
year
0 0
Application received
during the year
04 01
Units Reimbursed
during the year
04 01
Cases closed during
the year
0 0
Total Sanction 1,42,890/- 32,600/-
Total Reimbursement 1,42,890/- 32,600/-
% of funds utilized 100 % 100%


2.15 REIMBURSEMENT UNDER BAR CODE SCHEME

The Institute reimbursed the expenditure to the tune of Rs. 1,55,312/-
incurred by 05 unit holders on account of Bar Code reimbursement under
One Time Registration Fee and Annual Recurring Fee during the current
financial year . The Year-Wise details of units who were reimbursed under
the scheme is as follows:

2012-13 2013-14
Brought Forwarded
Cases of previous
year
0 0
Application received
during the year
06 05
Units Reimbursed
during the year
06 05
Cases closed during
the year
0 0
Total Sanction 2,16,778/- 1,80,000/-
Total Reimbursement 1,76,911/- 1,55,312/-
% of funds utilized 81.60% 86.28%

61

2.16 NSIC SINGLE POINT REGISTRATION

Under the scheme of Single Point Registration for Govt. Purchase
Programme, the Institute during the year disposed of 12 cases.
Comparison of cases disposed during 2012-13 & 2013-14 is as under-


2012-13 2013-14
Cases Received 17 12
Cases Disposed 18 12
Cases Carried Forward NIL NIL
Revenue Generated 64,402 /- 40,532/-


2.17 CAPACITY ASSESSMENT

During the year the Institute extended assistance to the MSME units of the
state by carrying out the Capacity Assessment of 01 units

2013-14
Cases Received 0
Cases Disposed 0
Cases Brought Forward 0
Revenue Generated 0


2.18 TECHNICAL AND STATISTICAL REPORTS PREPARED

The following reports/profiles/documents were prepared /updated during the
year by the field/technical officers of this Institute

1. J&K State Industrial Profile
2. 02 No. of District Industrial Profiles
3. Preparation of New Project profiles .
06 No. of New Project Profiles were prepared on the following subjects
i) LPG Cylinder (14.2 Kg.)
ii) Domestic LPG Stove
iii) Living Shelter/Steel PD
iv) Thread making (Wool & Pashmina thread/yarn)
v) Solar Shop
vi) Canned Cherry
4. Preparation/updation of Project Profiles
06 No. of Project Profiles were updated on the following Subjects
i) Automobile Wires
62

ii) S.S.Portable water filter
iii) Hacksaw Blade
iv) Uninterrupted Power Supply (UPS)
v) Electronic Weigh Scale
vi) Mobile Phone Repair & Service


2.19 TECHNO-ECONOMIC ASSISTANCE TO ENTREPRENEURS

The field & technical officers of the Institute visited a number of MSMEs
during the course of the year for various purposes. The Institute was also
visited by many prospective and existing entrepreneurs. In this connection,
535 Nos. of techno managerial guidance were rendered to such
entrepreneurs/enterprises for identification of New Project/Products,
selection of machinery, finding raw material sources, improving productivity,
quality and competitiveness and finding new markets.


2.20 INFRASTRUCTURE CREATION

In the beginning of the action plan year under consideration i.e. 2013-14
there were 48 PCs & 21 Printers 03 Scanner 05 Lap Tops and 1 LCD
Projector in working order.

In the course of this year 08 Computers, 01 No. Lap top were disposed off
after they were declared unserviceable after receiving sanction from
Headquarter through Public Auction . GFR 18 has been forwarded to
headquarter. During the current financial 01 No. of printer and 07 No. of
Scanners have been added to the Hardware facilities with the help of
sanctions received from HQ under various programmes/schemes.

Description Nos. as on 31.03.2013 Nos. as on 31.03.2014
PCs 48 40
Lap Tops 05 04
Printers 21 22
Scanner 03 10


2.21 RESOURCE SHARING

The networking was provided to all the users who were provided
computers and other peripherals as a result of resource sharing,
ineffective time was considerably reduced and disposal time was
improved.

2.22. INTERNET CONNECTIVITY

63

Fast Speed Broad Band connectivity was provided to all the users
against the connectivity available to single user during the previous year.


2.23 GFR-17 PROPOSAL
The Institute forwarded GFR-17 proposal for unserviceable items related
to Dead stock MSME-DI, Jammu items amounting to Rs. 40,770/-,
Library books amounting to Rs. 13,094/-, workshop (Store), MSME-DI,
Jammu items amounting Rs. 3,382/-, Workshop Store, MSME-DI,
Srinagar items amounting to Rs. 7,595/- and Senet items amounting to
Rs. 8,27,194/- for necessary approval to Headquarter office. Accordingly
sanction was accorded by the Headquarter office for its disposal through
Public auction. After Public auction above mentioned stores were
disposed off and revenue collected on account of Dead Stock MSME-DI,
Jammu was Rs. 8,300/-, for Library MSME-DI, Jammu was Rs. 1,100/-,
for Workshop Store, MSME-DI, Jammu was Rs. 70/-, for Workshop
Store, MSME-DI, Srinagar was Rs. 2,156/- and for Senet, MSME-DI,
Jammu was Rs. 16,070/-. Accordingly GFR 18 was forwarded to
Headquarter for information



2.24 IMPROVEMENT IN RECORD KEEPING

During the year efforts were made to improve the records and
accordingly new stock registers for Dead Stocks, Stationary & SENET
were opened. New registers for keeping record of ISO-900
reimbursement, Bar Coding reimbursement and MDA scheme were
opened and maintained which resulted in easy retrieval of information
and data.


2.25 STRENGTHENING OF INDUSTRAIL ASSOCIATIONS

Sr.No. Name of
Association
Project
Cost
Ph-I
Assistance
Sanction
Ph-I
Association
Share
Ph-I 50%
Released
1 Kashmir Chamber of
Commerce & Industry
Association Srinagar
7,46,000/- 3,73,000/- 3,73,000/- 1,86,500/-
2 Industrial Association
Bari Brahmana,
Jammu
4,39,200/- 2,19,600/- 2,19,600/- 1,09,800/-
3 Industrial Association
Gangyal, Jammu
1,87,200/- 93,600/- 93,600/- 46,800/-







64




2.26 REVENUE GENERATION BY THE INSTITUTE

Revenue Head 2012-13 2013-14
Revenue from Workshop 83824/- 1,16,485/-
Specialized Training Programme
(CAD/CAM) ESDP
0 0
Sale of Training Products 12,070/- 4,189/-
Sale of old newspaper/disposal of
old journals/File weed out
0 500/-
Seminar Fees / Bar Code
MDP/ESDP/EDP/VDP
86,900/- 71,685/-
Capacity Assesment & Consultance 3,500/- NIL
Project Appraisals NIL 5,000/-
Sick Unit Studies NIL NIL
Inplant Studies NIL NIL
Surveys NIL NIL
Energy Audits NIL NIL
NSIC Registration/GSPP & SCX
Regn. Fee
64,402/- 40,532/-
Sale of Publication 32,415/- 4,980
PD Account 3,750/- 7,000/-
RGUMY NIL NIL
National Awards NIL NIL
SDP (Workshop Training) 12,900/- 8,900/-
Others 3,950/- 37,749/-
TOTAL 3,03,711/- 2,97,020/-

% INCREASE OF REVENUE RECORDED = (-)2.20%
















65