Boosting Business in J&K: Government Approves Land Transfer and New Business Rules

Boosting Business in J&K: Government Approves Land Transfer and New Business Rules
  • New industrial estates to come up in Anantnag, Shopian, Budgam

  • MHA notifies amended Business Rules of J&K

Srinagar: In a significant move to boost industrial growth and create employment opportunities, the Jammu and Kashmir government has approved the transfer of 836 kanal 5 marla (approximately 104.5 acres) of land to the Industries and Commerce Department for the development of industrial estates in the Kashmir division.

This decision, outlined in Government Order No 79-JK (Rev) of 2024 dated June 25, 2024, aims to establish industrial estates in the Anantnag, Shopian, and Budgam districts.

The approval follows a series of administrative decisions and recommendations from key bodies, including the Administrative Council, the Financial Commissioner (Revenue), the Divisional Commissioner of Kashmir, and the Deputy Commissioners of the three districts involved.

According to the official order, the land allocation is distributed across the three districts, with Anantnag East (Mattan) receiving 223 kanal 5 marla, Shopian getting 207 kanal 13 marla, and Budgam being allocated 85 kanal 5 marla. In Anantnag, the land is spread across Nanil Aung and Ranbirpora, while in Shopian, it’s divided between Keller’s Berthipora and Zainapora’s Melhura. Budgam’s allocation is in the B K Pora area of Rakhi Suthoo.

The land transfer comes with specific conditions to ensure its proper utilisation. The Industries and Commerce Department must use the land solely for industrial purposes and comply with all relevant laws and permissions. Development must occur within three years, or the land will revert to the government. The transfer does not guarantee automatic allotment or regularisation for industrial units, which must meet established criteria. Additionally, any portions of land identified as part of watercourses or water sources will remain protected under environmental regulations.

This initiative is part of a broader strategy to stimulate economic growth, attract investment, and generate employment opportunities in Jammu and Kashmir. The government anticipates that establishing these industrial estates will bring significant economic benefits to the region. In a related development, the J&K administration earlier this year also approved the setting up of seven new industrial estates for Rs 304.51 crore. These estates spread over 5290 kanal (approximately 661.25 acres) across six districts, are expected to attract an estimated investment of Rs 8700.16 crore and create employment potential for 28,376 people.

The Administrative Council granted this administrative approval, chaired by Lieutenant Governor Manoj Sinha. A senior Industries Department official said, “These coordinated efforts to expand industrial infrastructure underscore the government’s commitment to transforming Jammu and Kashmir into a hub of economic activity. By facilitating the establishment of new industries, the administration aims to address unemployment, boost local economies, and attract both domestic and foreign investments to the region.”

J&K is witnessing a remarkable influx of industrial investment proposals, with 6909 applications received through its single-window system till this month. A senior Industries and Commerce Department official said, “This surge can potentially inject over Rs 1.23 lakh crore into J&K’s economy and create employment for approximately 4.69 lakh people.”

Officials said that Kashmir has attracted 5007 proposals, primarily for medium and small-scale enterprises, requiring 29,375.89 kanal (3671.98 acres) of land. Conversely, Jammu, with 1902 applications, is drawing larger industrial projects seeking 39,484.94 kanal (4935.61 acres), particularly in the Kathua district due to its proximity to Punjab and Himachal Pradesh.

J&K’s New Industrial Policy, introduced on April 1, 2021, has been instrumental in attracting these investments. It offers incentives such as capital investment subsidies and GST benefits. LG Sinha has acknowledged the policy’s success while noting that some land issues are yet to be resolved. Officials said that already, investments exceeding Rs 21,000 crore have materialised in the Jammu division.

Notably, 15 large projects worth Rs 14,594 crore in Kathua’s Bhagthali Industrial Estate are either operational or nearing completion. High-profile investors include cricket legend Muttiah Muralitharan’s Ceylon Beverages, setting up a Rs 1600-crore facility, and Dubai’s Emaar Group, investing Rs 500 crore in shopping malls and IT towers.

Meanwhile, Ministry of Home Affairs (MHA) Friday notified the “Transaction of Business of the Government of Union Territory of Jammu and Kashmir (Second Amendment) Rules, 2024.”

As per amended rules, no proposal, which requires previous concurrence of the Finance Department with regard to ‘Police’, ‘Public Order’, ‘All India Service’ and ‘Anti-Corruption Bureau’ to exercise the discretion of the Lieutenant Governor under the Act will be concurred or rejected unless it has been placed before the Lieutenant Governor through the Chief Secretary.

The Department of Law, Justice and Parliamentary Affairs will submit the proposal for appointment of Advocate-General and other Law Officers to assist the Advocate-General in the court proceedings, for approval of the Lieutenant Governor through the Chief Secretary and the Chief Minister.

Any proposal regarding grant or refusal of prosecution sanction or filing of appeal will be placed before the Lieutenant Governor through the Chief Secretary by the Department of Law, Justice and Parliamentary Affairs.

As per the provisos inserted in the principal rules, in rule 43, after the third proviso, “in respect of matters connected with Prisons, Directorate of Prosecution and Forensic Science Laboratory, the matters shall be submitted to the Lieutenant Governor by Administrative Secretary, Home Department through the Chief Secretary.”

In respect of matters connected with posting and transfer of Administrative Secretaries and cadre posts of All India Services officers, proposals will be submitted to the Lieutenant Governor by the Administrative Secretary, General Administration Department through the Chief Secretary.

As per MHA notification, the President, in exercise of the powers conferred by section 55 of the Jammu and Kashmir Reorganisation Act, 2019, (34 of 2019) read with the Proclamation dated October 31, 2019 issued under section 73 of the said Act, made rules to amend the Transaction of Business of the Government of Union Territory of Jammu and Kashmir Rules, 2019.

The amended rules would come into force on the date of their publication in the Official Gazette.

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