Zoning In The Moolah

The Jammu and Kashmir government has opened areas close to the Line of Control and the international border with Pakistan for investment to set up industries. Its new industrial policy has divided areas in all 20 districts of J&K into zone-A and zone-B “on the basis of industrial development so as to promote equitable spatial industrial growth”. Zone-B is what the government plans to incentivise more, with investors getting land at prices much lower than in zone-A. Any investor in zone-B will get 50 per cent subsidy as compared to 40 per cent in zone-A. Officials say this is for the first time in 70 years that industrial policy has been devised in such a manner.

Some of the places chosen for the project would raise eyebrows as these are close to the LoC or the border—a ragged mountainous terrain and highly militarised zone that regularly records shelling and skirmishes. The incentive is, hence, more for these border areas. In Jammu district, for instance, areas like Bishnah, Marth, Satwari, Nagrota, R.S. Pura and Miran Sahab are in zone-A, while border areas like Akhnoor and Suchetgarh along with 12 other areas in zone-B. In Poonch, there are no zone-A areas, but 11 areas in zone-B. Similarly, in Rajouri district, no area falls in zone-A, while 19 are in zone-B. In Rajouri and Poonch, areas like Nowshera, Sunderbani, Seri, Siot, Lamberi, Panjgrain, Qila Darhal, Manjakote and Doogi, which are close to the LoC and see regular shelling, have been placed in zone-B. In Kashmir’s Baramulla district, 24 areas close to the LoC, including Uri and Boniyar, have been kept in zone-B. Similarly, in frontier district Kupwara, 27 areas such as Keran, Kralpora, Machil, Sogam, Teetwal and Langate, which see regular shelling and are on infiltration routes, have been placed in zone-B. There are border areas such as Teetwal, Kralpora and Sogam where land has not been identified for investment.

Officials say it is not necessary that state land would be made available for every investor. “Government has limited land available,” says Mohammad Harun, managing director of J&K State Industrial Development Corporation. “Investors can set up ind­ustries on private land and get ­incentives from the government such as 100 per cent reimbursement of GST. The policy is to encourage local entrepreneurs and whosoever wants to ­invest. The government is making the investment process easy. Property owners can sell their land to investors; they can also give it on lease or rent, or as equity to be a business partner.”

Anoo Malhotra, director of industries, Jammu, says the zone-A/B process has been devised for uniform development of industries across J&K. “The government is in the process of acquiring land for the industrial estates, but ­investors can, meanwhile, acquire ­private land to set up their units,” she says. “We are getting many proposals from investors across India to invest in areas like Jammu, Samba, Udhampur and even in Kashmir.”

In November 2019, the J&K ­administration started an exercise to create land banks for industrial units. In Kashmir Valley, according to sources, the government has identified around 8,500 kanals of land that would be turned into industrial estates. This land would be given on lease to investors for 40 or 90 years. The industrial policy ­allows anyone to apply for investing in J&K with a project report and other req­uirements—a domicile certificate is not mandatory.

Sheikh Ashiq, president of the Kashmir Chamber of Commerce and Industry, says the government’s move would ­provide opportunities to people living in far-flung areas to establish industrial units in their own areas. “Even if the area is close to the LoC, they have right to a share in the pie,” he adds. However, Federation Chambers of Industries Kashmir president Shahid Ahmad Kamili says a lot of areas have been put under various zones without any infrastructure in place. “I have written to the government to reconsider the zoning process. I don’t think it will facilitate ­industrial development,” he says.

By Naseer Ganai in Srinagar