J&K govt. approves first-ever FDI policy for UT

It aims to facilitate investments exceeding ₹100 crore with minimum 51% foreign stake

February 24, 2022 12:04 am | Updated 12:06 am IST

Jammu and Kashmir Lieutenant Governor Manoj Sinha.

Jammu and Kashmir Lieutenant Governor Manoj Sinha. | Photo Credit: -

SRINAGAR

In a first, the Lieutenant Governor's administration on Wednesday approved a policy on foreign direct investment (FDI) for J&K with a minimum of 51% foreign stake.

L-G Manoj Sinha, who headed a meeting of the Administrative Council (AC) in Jammu, gave his nod for the Policy for Promotion of Foreign Investment in the industrial sector in J&K.

"The new policy is based on the guiding framework on FDI issued by the Government of India through the Reserve Bank of India (RBI) and the Department for Promotion of Industry and Internal Trade (DPIIT) and will be valid for the next 10 years," a government spokesman said.

The J&K FDI policy aims to facilitate foreign investments greater than ₹100 crore with a minimum of 51% foreign stake, he added.

Land for industries

It will pave way for identifying parcels of land in various industrial estates "to be given exclusively to industries with foreign investments, including vertical rise premises in the form of multipurpose buildings, complexes, with plug-and-play facilities".

The government said the land allotment process will be regulated by the J&K Industrial Land Allotment Policy, 2021-30. The UT administration also decided to extend benefits, incentives, and support under the Jammu and Kashmir Industrial Policy 2021-30 and New Central Sector Scheme to these units.

The J&K administration plans to set up multipurpose complexes for foreign investment by developing IT tower projects through private players in Sempora, Pampore and Exhibition Ground, Jammu.

"This is for optimal utilisation of land resources and to provide integrated services to multiple players. These towers will house different business activities and will form a part of the ‘Industrial Complex for Foreign Investment’," the spokesman said.

The J&K government has already approved the transfer of about 290 acres in seven villages at 17 locations in Srinagar and Budgam districts for the construction of housing colonies which are open to foreign investment.

Investment pipeline

This comes after the L-G administration wooed multiple investors in Dubai earlier this year with hopes of attracting ₹44,000-plus-crore investment.

The Dubai ports giant, DP World, is planning an inland port in J&K to ship products produced in the Union Territory to outside markets. Besides, ₹3,000 crore investment is likely from industrial giants such as Emaar, Lulu, MATU Investments, Al Maya Group, GL Employment Brokerage LLC, Century Financial, Noon e-commerce etc. Magna Waves Pvt. Ltd along with Emaar Group and Lulu International have shown interest in constructing a mall and an inland port in Kashmir.

The UAE’s pioneering financial services company, Century Financial, is likely to invest $100 million in J&K on three hotels and one commercial-cum-residential complex.

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