Srinagar, Mar 20: A delegation of PHDCCI Kashmir met Ranjan Prakash Thakur (IRTS), Principal Secretary Industries and Commerce J&K Government on Saturday and submitted a memorandum regarding the public policy interventions required to create a positive business sentiment in Kashmir.
The delegation headed by Chairman Kashmir Chapter Baldev Singh Raina and Mentor PHDCCI Kashmir Mushtaq Chaya, who were accompanied by Executive Committee members of PHDCCI Kashmir, Bilal Ahmad Kawoosa, Himayu Wani, Pervaiz Qalander, Shahejehan, Tariq Rashid Ghani and Naseer Khan discussed various issues of interest to Kashmir’s business community and the overall economic system.
Ziraat Times here re-produces parts of the memorandum submitted by the team:
Shri Ranjan Prakash Thakur (IRTS) Principal Secretary
Industries & Commerce
Union Territory of J&K
Dear Sir,
On behalf of PHD Chamber of Commerce & Industry Kashmir, we take pleasure in welcoming and congratulate you for assuming the charge of Principal Secretary Industries and Commerce UT of J&K.
We would like to submit following points for your kind consideration and necessary action:
Industrial Policy of UT of J&K: We would like to thank Central Government for the support to the ailing industry of J&K by providing New Central Industrial Development Scheme -2021. We would like to suggest following intervention may kindly be made in the UT level Industrial Policy of J&K and also the enlisted general issues of Industrial department may kindly be looked into
a) For nurturing of existing Industrial Sector and for availing the Industrial benefits under the New Industrial package the RBI norms for NPA, Restructuring, CIBIL Score and Credit Rating are needed to be relaxed keeping in view the economic breakdown business disruption since 2014 in Kashmir Valley due to flood and complete lock down from August 2019 due to Reorganization of J&K which was followed by Covid 19 lockdown.
b) The other components available under the Industrial Development Scheme (IDS) on the pattern of North East Package are to be continued along-with the announced Scheme.
c) The entire Kashmir Valley should have been kept in Zone B and the capital investment subsidy@50% on plant & machinery along with civil structure for both manufacturing as well as Service Sector needs to be provided with the maximum capping of 7.50 Cr only. The Ministry of Food Processing Industry is already providing the same in J&K.
d) Production linked incentives as announced by GOI needs to be extended in J&K in addition to New Industrial Development Scheme.
e) One time extension for project implementation for Industrial units by 2 years who could not establish their units due to complete lockdown since August 2019 because of Reorganization of J&K followed by Covid 19.
f) For the Revival and Rehabilitation of Sick MSME’s/ Units the Interest free loan up to 200.00 lakhs to be provided under CGTMSE Scheme with one time and annual fee charges paid by I/C Dept.
g) Soft loan for revival and rehabilitation of Sick Units to be kept exclusively at the disposal of JK bank instead of 70% with J&K bank and 30% with J&K SIDCO.
h) The on-grid solar power policy needs to be implemented and eased out in J&K for the installation of solar power projects by Industrial Units. Thereby the excess power generated by the solar power system of consumers will be fed back to the utility grid and entrepreneurs get compensated for the extra power fed back.
i) The PCB has become more of a posting to make money and unfair practices for providing
pollution Clearances and the clearances are delayed to the extent that people are losing interest in the projects, although the fee is charged from the date of application. The Pollution Control Board should issue Consent to establish certificate immediately after the online submission of details of the project and the Consent to operate may be issued within fixed timeline.
j) Holding of SLC Meeting for grant of Forest Clearances of Industrial activities is scheduled on 25th March; it was earlier cancelled twice and needs to be convened to clear pending case for forest clearances.
k) Changeoftitleoflicenceshouldbeallowedwithinthesamecircleaswasallowedearlier, from last one year it has been stopped.
l) The freight Subsidy under operation green is on fresh fruits, we suggest that the processed fruits may also be included in freight Subsidy.
m) The Raw material Depot of SICOP needs to be activated for sourcing of all industries. The SICOP was created for marketing and raw material storage of Industry, but presently the SICOP is doing marketing of steel industry only and has turned into a construction company. We therefore suggest that the SICOP should hold all raw materials of different industry established like food processing and polymer, textile etc. and function fully as per the mandate of the organization.
n) Change of Constitution or Change in Line of Activity should be made hassle free in Manufacturing sector with least compliances.
Service Sector:
a) We are thankful that the Tourism, hospitality, Education and Skill Development Industry has been included under New Central Scheme. We therefore request that all benefits like that of manufacturing Sector shall be made eligible for Tourism sector like that of property tax concessions, power & water tariffs, GST reimbursement as per industrial norms/ tariffs.
b) There is need for hassle free land allotments for Health Care Services, Warehousing and Education Sector.
c) Change of Constitution or Change in Line of Activity from Manufacturing to Service sector should be made hassle free with least compliances. In this regard the Business revival Committee has recommended for Waiver of additional premium charges for renewal and change in the constitution for alteration of activities to be considered by the I&C Department.
Revival and Rehabilitation of Sick MSME`s : For the revival and rehabilitation of Sick MSME`s We suggest the following:
- Implementation of Decisions taken by the Committee Constituted by Hon`ble LG for Revival of Business Sector in UT of J&K issued Vide OM No: FD-VII-Gen (120) R&R Dated: 25-Sep-2020 issued by finance Department J&K Government
- Soft loan for revival and rehabilitation of Sick Units to be kept exclusively at the disposal of JK bank instead of 70% with J&K bank and 30% with J&K SIDCO. We request the implementation of J&K Bank Industrial Revival & Rehabilitation Scheme (Annexure-3) of Circular No: CR-383 issued Vide Ref No: JKB/A&AP /2009-2010 Dated: 18-02-2010 under CGTMSE or CGSSD Scheme without insisting for Collateral Security and internal credit rating of Bank. Further the onetime fee and annual fee be paid by the industries and Commerce department/ Bank on behalf of the unit holder.
- The RBI, Banks and Industries and Commerce Department shall come up with the proposal/ Scheme to save all potentially viable MSME sick units. We suggest that In light of Industrial Development package 2021 the 47 Ind Scheme for revival and rehabilitation of Sick SME`s/Units of J&K government be revised and the interest free loan to the tune of Rs 200.00Lacs be provided under CGTMSE/CGSSD Scheme without going for internal rating and insisting for Collateral Security. Further the onetime fee and annual fee be paid by the industries and Commerce department/Bank on behalf of the unit holder.
The sanction letters issued by Director Industries and Commerce and Banks under Revival and Rehabilitation scheme be kept valid till the implementation of project without insisting for revalidation.
The soft loan provided by J&K SIDCO and availed by the unit holders so far fully or partially be restructured /rescheduled for 15 years and the moratorium period be extended up to 3-years instead of 1-2 years.
The Bank Loan availed under revival rehabilitation scheme by the Unit holders be also restructured / rescheduled for 15 years and the fresh need based credit be provided to the unit holders.
Non-Implementation of Business Revival Decisions:
Time bound Implementation of decision taken by the Committee Constituted by Hon`ble Lieutenant Governor for Revival of Business Sector in UT of J&K issued by finance Department J&K Government Vide OM No: FD-VII-Gen (120) R&R Dated: 25-Sep-2020. (Copy Enclosed)
PHDCCI MoU with Industries & Commerce Department for MSME Mentoring & Guidance and Facilitation for Entrepreunrs. Apart from that the facilitation cell will also coordinate between Industries department and high value investors so that potential Investors as well as Start-ups and Existing Units are facilitated.
Diagnostic Study Survey Report of PHDCCI:
In the action taken report of Revival of Business Sector in UT of J&K issued by finance Department J&K Government Vide OM No: FD-VII-Gen (120) R&R Dated: 25-Sep-2020 the point No 47 clearly mentions that the Industries and Commerce shall conduct a comprehensive diagnostic study for solving Industry related problems and furnish a report within 3 months. The PHDCCI has submitted the detailed proposal for Conducting the Diagnostic Study of all Industrial estates, the said proposal is pending for the administrative approval.
- Banking and Alternate Source of Funding:
a) The Money is the lifeblood of every business. We have witnessed that many small businesses in Kashmir are denied credit for the lack of a collateral asset or poor credit score. The tedious and time-consuming processes used by traditional banks add to the woes of entrepreneurs looking for loans. Hence, it becomes critical for entrepreneurs to explore alternative methods of financing. We would like to suggest for holding of Physical or Hybrid- Virtual Workshop and the proposal stands already submitted to Director Industries and Commerce Kashmir in this regard.
b) We would also suggest that the Jammu & Kashmir Development Finance Corporation and JKFC and other banking and Non-banking institutions should provide hassle free credit facilities & other Infrastructural support for promotion, expansion & modernization of industrial enterprise.
- Handicraft & Handloom Sector
a) Implementations of National Handicraft and Handloom Program of Ministry of Textiles GOI for self-sustained development of Handicraft and Handloom Sector. The Finance Minister Nirmala Sitharaman has announced that seven textile parks will be set up across the country over three years and we request your Excellency to impress upon the central government for setting up of one of the textile park at Kashmir region.
b) As a permanent marketing support providing the grant for establishment of showrooms and warehousing facility at local, national and international levels.
c) Organising the international and National Reverse Buyer/ Seller Meets in Srinagar on regular basis and PHDCCI will play a vital role in organizing these Buyer Seller Meets.
d) Rescheduling/ re-sanctioning of PHDCCI Craft Bazar, Jaipur Rajasthan: We are thankful to your goodself for providing the administrative approval/ Sanction on 10th of March-2021
for our proposal of organizing Craft Bazar, at Jaipur Rajasthan for Artisans of J&K. Despite the sanction has been given but we do understand that in current scenario the challenges that are being faced by the department in getting partcipation owing to the paucity of time and necessary logistic arrangemnts. Considering the situation and in the large interest of Artisians/Unit holders/Coperatives/ and other stakeholders we request for resanctionng of the administrative approval.
Common Facility Centre (CFC`s):
The below mentioned already established Common Facility Centre’s CFC’s are to be madefunctional / operational through the registered Companies, Co Operatives of basic stakeholder’s related with the concerned activity.
Bat Cluster Bijbehara Annatnag.
Leather Cluster Lassipora Pulwama. Silk Park Zakura Srinagar.
IICT Complex Nowshehra Srinagar UNDP Nowshehra Srinagar
Revival and Promotion of Silk Industry:
The Silk Industry is traditional labour intensive industry in J&K having huge potential of Value addition, employment generation and foreign exchange earnings. The Existing Silk Reeling Units who are at the verge of closure due to the financial support provided by state government to J&K Industries Ltd. under the World Bank Loan therefore for the survival and revival we suggest following interventions for Existing 35-Silk Reeling Units:
a) The CFC at Silk/ Handicraft Park Zakura Srinagar is to be made functional through stakeholders enabling the entire value chain of silk right from cocoons up to the end products of silk for export marketing at one place under private sector as the basic infrastructure along with some plant and machinery is already available at site established by JK SICOP with the Financial Support from Ministry of Textiles Government of India.
b) That the cost of production of silk yarn at J&K Industries Ltd is very high resulting in huge loses to them. The JKI having infrastructure and expertise in weaving and marketing of silk cloth should procure the whole quantity of silk yarn produced by silk reeling units in J&K under MOU on competitive market rates and will be saved from incurring huge loss.
c) The entire quantity of cocoons produced here needed to be processed locally and not to be allowed for export outside J&K in raw shape to ensure the employment generation locally through value addition in the entire silk value chain.
Revival & Promotion of Carpet Industry
a) The revival Plan made by IICT for Carpet Industry on the instruction of Hon`ble Advisor
should be Implemented in consultation with stakeholders.
b) That the revolving fund for purchase of unsold carpets be provided by the J&K Government and kept at the disposal of JKHHC, IICT and KCCDO in the separate ESCROW account jointly operated for purchase of carpets from Artisans/Weavers/ Manufacturers and purchased carpet inventory will be kept at CFC building at IICT Complex Nowshehra Srinagar. The Carpets be incorporated on the SMARATH web portal of FlipKart and the Portal of Ministry of Textiles GOI for online marketing.
c) The artisans and weavers be assured minimum wages for which Model Production Centers to be established in Craft Clusters.
d) The implementation of SFRUTI Scheme of KVIC Ministry of MSME GOI for the benefit of Carpet Artisans/ Weavers.
e) Providing of necessary support for GI tagging for Hand Knotted Carpets.
Revival and Promotion of Wool Industry:
The wool processing unit of JKI at Nowshehra Srinagar is required to be made functional so that the marketing support for wool is ensured to Sheep Farmers on the pattern of Silk Farmers as provided by JKI. Further keeping in view the market potential of mutton locally the mutton production policy is to be adopted along with wool production policy which is presently in vogue.
Export Promotion Policy
- a) Declaration of Whole Kashmir Valley as Special Economic Zone (SEZ).
- b) Making Inland Container Dept. ICD at Rangreth Srinagar operational and functional.
- c) Providing the grant support for participation in national and International exhibition/ Buyer Seller Meets upfront through CEPC, HEPC, Handicraft Export Promotion Council, PHDCCIInternational Exhibitions and other export promotion councils of Ministry of Textiles GOI.
- d) As a permanent marketing support providing the grant for establishment of showroomsand warehousing facility at local, national and international levels.
- e) Organising the international and national Reverse Buyer/ Seller Meets in Srinagar onregular basis.
- f) Nomination of Representative from the stakeholders like Kashmir Carpet ClusterDevelopment Organisation (KCCDO), MEERAS in the Export Promotion Development Board of J & K in view the export and empowerment potential of Carpet and Shawl Industry having heights in export figures.
Non-Implementation of LG`s Order for Merger of PSUs
The Order for merger of PSU`s of Industries and Commerce department should be implemented to encourage private sector participation in the economic development of J&K for which the order has already been issued by Hon`ble LG Vide No: LGS/PS (LG)/2020/15 Dated 14-January- 2020 for creating healthy atmosphere for the development of private sector in J&K.
Ease of doing Business: Lastly there should be Time Bound Single Window Clearance for all type of Projects, Services and for that that we suggest that all 372 point of Business Reform Action Plan (BRAP) issued by Department of Industrial Policy and Promotion GOI should be implemented in J&K on priority so that we will improve our rankings in ease of doing business.