Parliamentary Committee J&K visit: PHDCCI Kashmir chapter submits memorandum

Srinagar, Aug 8: On the eve of the visit of the Parliamentary Committee Department -related Standing Committee on Home Affairs to J&K, PHDCCI Kashmir chapter has submitted a memorandum to the committee, flagging key economic and business issues related to J&K.

The memorandum was submitted on Wednesday during at SKICC here during the committee’s wide-ranging interaction with the business community of Kashmir.

Here is the full un-edited text of the memorandum, a copy of which has been received by Ziraat Times:

Parliamentary Committee

Department-related Standing Committee on Home Affairs

SUB: Administration, Development and People’s Welfare in the Union Territory of Jammu & Kashmir

Dear members,

On behalf of PHDCCI-J&K and as Chairman of PHDCCI-Kashmir region I would like to welcome the delegation of parliamentarians on Home Affairs for visiting Kashmir for detailed examination and inputs for Administration, Development, and People`s Welfare.

We PHDCCI as only National Apex Chamber working in J&K from last several decades are pleased to provide our suggestions and inputs on captioned subject:

Administration:

An efficient, responsive, transparent and accountable administration is not only of paramount importance for the proper functioning of J&K. We believe that it is also the basic means through which government strategies to achieve the development. The administration is one of the main vehicles through which the relationship between the state and civil society and the private sector is realized, supporting reforms in administration is a means towards achieving higher-order development goals – particularly equitable growth, poverty reduction, peace and stability. Therefore, in view of various prevailing conditions in and around J&K the PHDCCI-J&K would like to present following immediate interventions for Administration of J&K:

• In J&K we need Maximum Governance and Minimum Government.

• The most widely spread endemic in J&K is corruption which has entangled the development of J&K from so many decades, therefore it must be handled quickly and wisely. There is hardly any office, in both the private and public sector that is untouched from this disease. There is no telling how much loss the economy of J&K has suffered because of this. So increasing transparency and eradicating corruption in Administration should be paramount for the development of J&K.

• Implementation of Single Window Clearance that provides all necessary information on permits and licenses required for starting a business with less human interface. We also need to improve our rankings in ease of doing business.

• We need an administration that responds to the needs of citizens, especially women and marginalized people.

• Increasing the accountability of state institutions/ PSU`s is an essential feature for Administration, which is key to achieving the better administration.

• We suggest that participation and transparency in decision-making — participation throughout the development process is a right, and the administration requires creating an enabling environment for the participation of all stakeholders for the developmental works.

• It needs to be ensured by the Administration that the public and private institutions and actors should be accountable to the public, especially to poor people, to promote, protect and fulfill human rights and to be held responsible if these are not enforced.

• The Unique programme Back to Village (B2V) wherein the entire administrative apparatus of the J&k administration was made to visit Panchayat needs to be continued.

• Citizens should be able to see how the government is spending their tax money, what services the government is providing, and how government officials are working to improve the community.

• The government administration needs to put more effort into developing its presence in J&K by communicating with people through online mode of social networks like Whatsapp and Facebook.

• The administration at various levels has needed to do handholding the unemployed youth of J&K.

• The letters and emails to various government departments including Administrative Secretaries, police, local authorities and others are mostly not acknowledged or given a reply. This is a negative practice and it is hoped that a directive will be issued by the chief secretary to the government for all government departments to acknowledge the emails and letters. People do not send letters for trivial issues but mainly for important complaints to be addressed. When one does not get a reply it means that the complaint or feedback is not worthy.

• The Websites also do not give adequate information about all government departments and mobile numbers and email ID`s of Concerned Officials. The other concerns the telephone calls to government departments and other offices. Sometimes no one receives the call even after a few minutes of the phone ringing.

• There is immediate need for change in Work culture, Discipline and Attitude in Business units of Banks, including J&K bank and other Nationalized Banks, much of the indifference and casual approach towards customer service can be attributed to job monotony and the work environment. It will be of great advantage if senior official counter-checks the actual “branch atmosphere” by having in hand a report on customer service submitted by the branch. We suggest that there should be customer education both in regard to rights and responsibilities in dealing with banks should be viewed as a fundamental issue in any attempt to improve customer service. Customer should be made aware not only of various schemes and services offered by banks, but also about, schemes and formalities, procedures, legal requirements and limitations in the matter of providing services by the banks, through a proper mix of advertisement, literature, interfaces, seminars, etc. Banks should involve their employees in all customer education programmes

Development

The slow growth of the state of Jammu and Kashmir can be attributed to various factors. The climate of armed militancy in Kashmir during the past decade has been a major factor. Low productivity in agriculture and allied sectors has impeded employment and income generation. Poor industrial infrastructure along with the poor investment climate has left the industrial sector in its infant stage. There has not been a suitable strategy for the potential sectors to achieve higher economic growth. Lack of good governance and sound fiscal management has also been responsible for the poor economic development of the state.

After the abrogation of Article 370 we are witnessing a radical change and reforms in various sectors and institutions of J&K. We are hopeful that as a state with unique features and a strategic location, the speedy development of Jammu and Kashmir will be achieved with these reforms. We therefore suggest following interventions for development of J&K.

• The top priority of the government should be to create a secure environment by improving the law and order situation in J&K which is certainly improving after abrogation of Article 370 and that will definitely attract investments and employment generation under New Industrial Development Scheme of J&K.

• Before inviting investments and new projects under new Industrial development scheme, the existing industries and businesses and sick units be provided with required financial assistance or incentives and interest subventions in line with New Industrial Development Scheme.

• The unutilized idle existing infrastructure/ resources of Central Government or J&K Government be made operational or should be utilized on priority. A proper Survey and assessment needs to be done in this regard.

• There is lack of proper and professional planning for implementation of Smart City Projects in Srinagar and Jammu. These Projects needs to be implemented in close coordination and inputs from stakeholders.

• The Udhampur-Srinagar-Baramulla rail link project is highly essential to provide an alternative and a reliable transportation system to Jammu and Kashmir to join Kashmir Valley to the Indian Railways network and that will play a vital role in economic development of J&K

• The proposed Metrolite in Jammu city and Srinagar and 4-Lane Express High way and other Infrastructure Projects needs to be completed in time bound manner.

• We suggest that in J&K the policy of disinvestment and privatization need to be encouraged and it is high time to have faith in the private sector of J&K.

• We had earlier requested to include the Rangreth Old Airport and Awantipora Airport under UDAAN Scheme of Ministry of Aviation for which the state government had already got clearance for Awantipora Airport from the Union Defence Ministry. To control the Exorbitant Air fare to Srinagar we request to get these Un-served Airports under Regional Connectivity Scheme (UDAN-RCS). We also request for construction of Airports in tourist destinations to cater the chartered flights.

• The International Flights and Night Flights to Srinagar and Jammu Airport should be considered on priority.

• Development of Infrastructure of Tourist and pilgrimage places like Delhi Jaipur-Agra Golden Triangle, we can develop also develop Religious Circuit for Vaishnodevi-Kherbhawni-Amaranth-Shanti-Stupa-Manali under PRASAD Scheme of Ministry of Tourism.

• For developmental point of view some of the most crucial problems facing J&K today are the issues of urban villages, lack of financial planning, absence of infrastructure for unauthorized colonies, and housing crisis. These issues require a localized and contextual formulation and implementation of plans and not a top-down approach in the shape of Master Plans.

• The up gradation and expansion of existing tourism units at Gulmarg, Pahalgam, Sonmarg, and Boulevard should be allowed by means of expansion of rooms Vertical or horizontal, expansion or refurbishing the old structure in tune with present market demand with ultra-modern services and interior designs.

• We also suggest for Cable Car Projects at Shankeracharya Temple, Pahalgam, Dodpathri, and Sonmarg.

• The Construction work for Central University, AIMS and IIT and other District Medical Colleges needs to be completed on priority.

• Housing and Urban Development is an important sector. J&K has a tremendous potential if a conducive and enabling environment is created. Most of the policy and legal framework has been created post 5th August 2019. It is highly desirable that Srinagar Master Plan needs to be revisited to align its proposals with the overall Government vision. The HUDD administrative Secretary needs to be directed to gear up and do the needful without taking long. Directions should go to the Principal Secretary for immediate short term review of the master plan so that major investment proposals do not get stuck for land use clearances. Strategic interventions are required to be made in the master plan so that a balance is maintained between master plan proposals and the Government vision

• Considering the growth prospects of Agriculture and Horticulture sector, the government should plan for higher production and productivity and export of agricultural produce in order to achieve an annual agricultural growth rate of 5 per cent.

• The promotion for formation of Farmer Producer Organizations FPO`s needs to be implemented on priority for organized development of farm sector of J&K.

• We also propose for Production linked incentives as announced by GOI to be extended in J&K particularly for Handicraft and Handloom sector of J&K.

• The percentage of Remission of Duties and Taxes on Exported Products (RoDTEP) from Kashmir needs to be reserved at least 5% , The recent notification with lowest RoDTEP on carpets and other handicrafts and export potential items from J&K is disheartening the trade community.

• For Economic development and for revival of existing Industrial Sector and indigenous trades of J&K we suggest following one time interventions:

• The Emergency Credit Line Guarantee Scheme, ECLGS 3.0 which is applicable to Hospitality, Travel & Tourism, Leisure & Sporting sectors and also now extended to aviation sector is requested to be extended to all business sectors of J&K who are in stress from last four years. The extension of the ECLGS 3.0 to all sectors of economy in J&K will help to revive the align business houses especially the Agriculture, Horticulture and Auto sector , which are one of the highest revenue and employment generating sectors of the union territory of J&K.

The Revision in the threshold for aggregate exposure as per the circular of 4th June of RBI specifies the eligibility conditions for MSME accounts to be considered for restructuring as above limit ₹50 crore and that also needs to be enhanced for J&K as there are only 20-25 business establishments with above ₹50 crore bank finances and are simultaneously generating employment for more than 1 lakh direct and indirect workers. The pandemic had created supply related disruptions due to strict nationwide lockdown, and has also created a demand shock for the economy, therefore it should be realized by RBI and Ministry of Finance that the businesses in J&K are suffering with the similar situation from past several years and intervention in the form of one time bailout package is need of hour to revise the economy and development of J&K and at least the applicability of ECLGS 3.0 needs to be considered for ailing economic sector of J&K

• There is also immediate need for relaxations in the RBI norms for NPA, CIBIL Score and Credit Rating, keeping in view the economic breakdown since 2014 in Kashmir Valley due to flood and complete look down from August 2019 and thereafter due to Reorganization of J&K followed by Covid 19.

• Most of the business houses of the valley are either under stress or their loan accounts have turned bad. The issue of bad loans (BL) problem of J&K has been festering like a sore and there has already been much delay in addressing the grievances and fiscal needs of Business fraternity of J&K. Government of India needs to break free from textbook fiscal norms for J&K and go beyond the standard practice and provide the Sustainable Solution for the NPA`s of J&K. It is imperative that the government acts fast and decisively on the issue by Creation of Asset reconstruction Company to take over all these bad loans

PROPORSAL FOR ESTABLISHMENT OF ALTERNATE INSTITUTE/ASSET RECONSTRUTION COMPANY: In line with the vision and proposal of tacking of bad loan problem in the country, the Govt. of India recently introduced the concept of establishment of bad bank or Asset reconstruction companies. Keeping this objective, safeguard of MSME units of valley , financial problems of entrepreneur , safe guarding interests of Banks especially JK Bank, we hereby propose establishment of an separate entity with 100% shareholding of UT of J & K to take over of eligible bad loans of Bank. The proposal is submitted as:

• The UT of JK will float a company with 100% shareholding of JK Govt. here in referred as ARC.

• The Govt. will take entire Equity of ARC with initial capital of minimum 50 Crores

.

• The ARC will take bad loans of eligible MSME unit holders of J & K and Ladakh at a haircut of 30%.

• The ARC will debit the respective amount to the respective borrower in his books of accounts with only hair cut of 25% after executing respective documentation. For Example, If ARC will take Loan of Rs 100 of Mr. A for Rs 70 from Bank; the ARC will debit Rs 75 to Mr. A in his Books.

• The ARC will give the borrower one year gestation period to restart business operations and nominal interest at an interest rate of 2%

• After one year, the borrower will repay loan within 5 to 7 Years with interest of 5 to 7%

• After repayment of entire loan, the property or assets mortgaged to be released.

• It is requested to completely waive off the Amnesty tax amount of Arrears in the old tax regime (VAT), keeping in view the continuous business loss from last several years.

• We also request for extension in the due dates for filling of reimbursement Claims and provide an amnesty or one time relaxation for filling the reimbursement claims for Financial Year 2020-21 and 2021-22

• Easing government restrictions in the banking system (such as credit rationing due to priority sector lending or loan waiver incentives, and entry barriers) can aid the process of Financial development in J&K.

People’s Welfare

We appreciate the UT administration for implementation of various welfare Schemes for the Common people of J&K. We would like to provide following inputs in this regard:

• The health insurance coverage to all residents of Jammu and Kashmir under Ayushman Bharat National Health Protection Scheme is a historical step in the direction towards Universal Health Insurance. It is heartening to see residents availing free and cashless benefits from reputed empanelled hospitals of Jammu and Kashmir. We are hopeful that whole population of J&K will be covered under this ambitious health Scheme.
• To enable better living and drive economic growth stressing on the need for people centric urban planning and development. The Pradhan Mantri Awas Yojna Scheme needs to be made applicable to Maximum population of J&K.

• There is need for Special Electricity Subsidy Scheme for Common People as winters are harsh in Kashmir similarly summers are harsh in Jammu. A scheme is required to be devised for providing subsidized cheap electricity to common people as welfare scheme.

• As a major source of income and employment for the local people, revival of tourism needs to be ensured to increase direct and indirect employment. Development of other sectors, which include horticulture, agro-based industries, handloom and handicrafts, Floriculture, Medicinal plants, sericulture, can generate employment opportunities in the state. Setting up of hydel and solar power projects can also provide employment opportunities to technical and non-technical people. Biotechnology and Information Technology, the new emerging knowledge- based industries, which have high employment potential, need to be focused upon.

• There is need for implementation of all Women Empowerment Schemes of Ministry of Women and Child Development in J&K like One Stop Center Scheme, Women helpline Scheme, SWADHAR Greh (A Scheme for Women in Difficult Circumstances)

• The National Social Assistance programme should be implemented through Direct Bank Transfer and in un-banked areas the beneficiaries should be provided with cash facility.
• We suggest and propose as different departments have created databases for different schemes without authentication and data sanitization, the social registry of J&K should be made that would ensure that each of the eligible beneficiaries is properly identified. It would weed out ineligible beneficiaries from various schemes. The social registry would be a super database in which databases of all departments would be integrated.

We hope that the Department related standing Committee on Home Affairs will include our inputs and suggestions in the report of Administration, Development and People’s Welfare in the Union Territory of Jammu & Kashmir

Sincerely Yours

Baldev Singh Raina

Chair PHDCCI-Kashmir

Submitted on 18-08-2021 at SKICC Srinagar