KV Network

A welcome step

A welcome step
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The State of Jammu and Kashmir is lacking on various fronts and one such core sector which has seen no progress is the lack of interest among investors to setup various units and contribute in improving the infrastructure here.
The lack of interest among the investors is engrossed in various knitty-gritties that have over a period of time been allowed to cultivate here and have become part of the work culture in all spheres.
However, the present administration headed by Governor Satya Pal Malik took a welcome initiative to encourage the private sector in improving the infrastructural needs in the Healthcare sector.
The administration announced a healthcare Investment Policy-2019 as a decision in this regard was taken on March 08, 2019. As per the new Health Care Investment Policy, the Government of Jammu and Kashmir will promote and encourage the private parties and entrepreneurs for setting up healthcare infrastructure in the state by providing subsidies and incentives.
Accordingly, 30% subsidy on capital investment will be provided for setting up of multi-speciality Hospitals, Super Specialty Hospitals, Medical Colleges, Nursing Colleges and Paramedical Colleges.
The move if worked in the right direction can prove a boon for the healthcare sector as Kashmir valley has been lacking on this front from the past several decades now. Kashmir has no participation from private players in the healthcare sector as no private healthcare facilities have come up on high professional lines here.
The governmentís move to encourage the private participants can turn the tide as the incentives have raised the bar to promote and encourage investment to boost the sector.
The government has announced to offer an interest subsidy @ 5% per annum on term loan subject to a ceiling of Rs 15 lakh per year for a period of five years from the date of operationalization of the project. Also, the subsidized power tariff rates shall apply as applicable to Industries Sector. 100 % subsidy on purchase and installation of DG sets with an upper ceiling of Rs 45 lakh.
For availability / allotment of land, the policy envisages, State Government shall through the J&K SIDCO and J&K SICOP as facilitators create the land bank and allot the land on the premium rates as applicable under Industrial Policy 2016.
Further, as per the Policy, one-time subsidy up to 25% of the cost incurred on imparting training to the Nurses and Paramedical staff will be provided by the State Govt. Moreover, single window clearance mechanism shall be adopted for processing the project proposals with final approval to be accorded by Apex Level Project Clearance Committee (ALPCC).
The State Government, as per the policy, may declare a well-defined geographical area having potential and being conducive for development as Medical City to promote medical tourism in the State.
However, the policy announced by the government needs to be worked out in a transparent manner and the real motive behind announcing such policy should be addressed.


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