The Ministry of Commerce and Industry (MoCI) on September 30, 2023, issued a notification to amend notification no. 1(1)/2020-SSS dated February 19, 2021, titled New Central Sector Scheme for Industrial Development of Union Territory of Jammu & Kashmir.
The following amendments have been stated:
• The Clause 6.3. Commencement of Commercial Production shall be replaced with the following:
o Commencement of Commercial Production: means starting of manufacturing of finished goods on a commercial basis after completion of all the phases of the unit, which is preceded by trial production of every or all phases and installation of complete plant and machinery for manufacturing of finished products in commercial quantity and all raw materials, consumables, etc. required for manufacturing are available.
o The unit shall be allowed to sell or supply* the finished goods produced/manufactured in the intermediate phases. The date of commencement of commercial production after the completion of all phases shall not be later than 3 years from the date of grant of registration as per the requirements under clause 6.8(a) of the New Central Sector Scheme 2021. Commencement of commercial production shall be counted from the date on which the entire project gets grounded (within 3 years of registration).
o The applicant will be eligible for claiming incentives only after the date of commencement of commercial production as per the amended definition above
o The amended definition of “Commencement of Commercial Production” will apply to all the scheme's provisions/components/clauses. For instance - The commencement date of commercial production after the completion of all phases (as per the amended definition) shall be considered to decide the claim's eligibility.
• The clause 10.2 (b) shall be replaced with the following:
All eligible units can avail of Capital Interest Subvention at the annual rate of interest of 6% for a maximum of 7 consecutive years from any date after the date of disbursement of sanctioned loan amount availed for procurement of ‘P&M in case of Manufacturing units’ and ‘building and other durable physical assets’ in case of Service units. The incentive shall be provided on a term loan disbursed on or after 01-04-2019 against the eligible investment. However, disbursement of eligible amounts under this incentive shall begin only after the commencement of commercial production.
[Notification No. 1(1)/2020-SSS]
