Explanation:

New units established in Zone A of Jammu and Kashmir under the New Central Sector Scheme (NCSS) can receive a capital investment incentive that amounts to a significant percentage of their total investment in plant and machinery. This incentive is designed to encourage businesses to invest in the region, fostering industrial development and job creation.

Specifically, the scheme allows new units to receive up to 30% of their investment in the form of a financial incentive. Practically, this means that if a business invests a certain amount in setting up its operations, it can claim back 30% of that investment as an incentive from the government. This incentive is capped at a maximum amount, which makes it a substantial financial benefit for companies looking to start or expand their operations in Jammu and Kashmir.

The New Central Sector Scheme categorizes the region into different zones to facilitate targeted industrial development and provide financial incentives. The classification of these zones is crucial for determining the eligibility of businesses for various benefits under the scheme.

Zone Classification

Zone A

• Characteristics: Zone A includes areas that are generally more developed and have better infrastructure.
• Incentives: Businesses established in Zone A are eligible for a 30% capital investment incentive on eligible plant and machinery, with a cap of ?5 crore.

Zone B

• Characteristics: Zone B comprises less developed areas that require more support to stimulate economic growth.
• Incentives: Businesses in Zone B can avail a 50% capital investment incentive, with a maximum limit of ?7.5 crore.

Geographical Distribution

The specific districts and blocks within Jammu and Kashmir are categorized into these zones to streamline the application of incentives. For example:

• In Jammu Division, various districts such as Doda, Udhampur, and Kathua are classified into either Zone A or Zone B based on their development status.
• In the Kashmir Division, districts like Anantnag and Pulwama are similarly categorized.

Purpose of Zoning

The zoning under NCSS aims to:

• Encourage industrialization in underdeveloped regions (Zone B).
• Provide a structured framework for financial support to boost local economies.
• Ensure that investments are directed towards areas that need them the most, fostering balanced regional development.

This classification not only helps in identifying where businesses can receive financial assistance but also plays a role in strategic planning for infrastructure development across Jammu and Kashmir.