J&K’s budget likely to reflect investments in industrial sector

Leading IT firms to visit UT shortly for setting up their units

JAMMU, Jan 12: Several Dubai based Information Technology (IT) firms are reported to have shown keen interest for investments in Jammu and Kashmir and these business leaders are expected to travel to the Union Territory after winters to explore possibilities of setting up their units.

“Jammu and Kashmir has managed to draw investments to the tune of Rs 2500 crore from Dubai during recent four-day visit of Lieutenant Governor Manoj Sinha and senior officers of the UT administration including Ranjan Prakash Thakur, Principal Secretary, Industries and Commerce.

The investments have come in both Jammu and Kashmir divisions, sources said, adding that Rs 2500 crore worth investments have taken total investments under new Industrial Development Scheme in J&K close to Rs 50,000 crore. Rs 18,300 crore worth Memorandums of Understanding (MoUs) signed by Jammu and Kashmir Government with real estate developers in December last year are in addition to the investments.

Asserting that the IT companies of Dubai have shown keen interest for investments in Jammu and Kashmir, sources said the business leaders and Executives of these companies are expected to travel to the Union Territory after winters and see for themselves the scope of investments and the places to set up their infrastructure.

“Some of the IT companies were very keen to invest in Jammu and Kashmir but want to visit certain places first before finalizing the investment plans. They are now likely to travel to Jammu and Kashmir, most likely in April to take a decision on their investment proposals,” sources said.

However, according to sources, third wave of COVID-19 could impact arrival of the IT companies in Jammu and Kashmir. If the third wave eases in February-March as predicted by the experts, the schedule of their visits will go on as expected.

Recent visit of top brass of Jammu and Kashmir to Dubai has resulted into investment of Rs 2500 crore in the Union Territory.
“The investment proposals have come for both the divisions of Jammu and Kashmir,” sources said, adding the investors showed encouraging response and the business leaders or their representatives would also visit the Union Territory shortly.

According to sources, after the signing of MoUs with Dubai based firms, more business houses within the country as well as abroad have shown keen interest in the new Industrial Development Scheme of Jammu and Kashmir.

The Government is shortly expecting industrial investments in Jammu and Kashmir to cross Rs 60,000 crore which would be a huge task as it had anticipated only Rs 28,400 crore worth investments when the Scheme was launched.

“Prior to Dubai MoUs, the investments stood at Rs 45,000 crore. With Rs 2500 crore from Dubai, they have reached Rs 47,500 crore. And the Government is quite confident that the investments will shortly touch Rs 60,000 crore as many industrial houses of the country are in touch with the Union Territory administration,” sources said. Rs 18,300 crore worth non-binding MoUs signed by the Jammu and Kashmir Government with the real estate developers are in addition to the Rs 47,500 crore worth investments, they added.

Jammu and Kashmir Government has already announced that it will be holding another summit for real estate development in Srinagar on May 21 and 22. First such summit was held in December last year in Jammu.
Annual budget of Jammu and Kashmir is likely to be introduced in the Parliament in February-March this year and it could also reflect the investments in industrial sector received by the Union Territory Government after the announcement of the Industrial Development Scheme.

This will be third consecutive budget of Jammu and Kashmir to be tabled in the Parliament in the absence of Legislature in the Union Territory due to delay in conduct of Assembly elections.