At FCIK’s EC meet, industrialists express deep concern over Kashmir’s industrial sector

Srinagar, Oct 16: The Federation Chamber of Industries (FCIK) held an Executive Council Meeting in which all the members strongly expressed their disappointment and dismay over the “government policies for development of the industrial sector in J&K.”

In a statement Ovees Qadir Jamie Secretary General FCIK said the EC members expressed their “anger & agony about the government’s approach towards Industrial Sector.”

More than 60% of the industrial units in Kashmir are engaged in manufacture and processing of goods mainly required by the government departments and as per the policy 2016-26 Industrial Policy,  most of these goods had been identified for purchase through J&K Small Scale Development Corporation Ltd. (SICOP), FCIK members said.

“With a sudden change in the procurement policy, the Finance Department on the instructions of central government, has directed all departments to make their procurements through GeM portal under an open competition. This has resulted in joblessness of the local units as almost all purchases by the departments for past two years have been made from outside units. Kashmir based units operate in most unconducive atmosphere with frequent road blockades, harsh climatic conditions and number of other disadvantages which make it impossible for them to compete with their counterparts operating from most advanced states having zero inventory mechanism and cheap labour”, EC members observed.

“The Central Industrial Scheme launched recently has generated a new hope among both existing and prospective entrepreneurs keeping in view the assurances that the new scheme aims to give fresh thrust to the industry and services-led development of Jammu and Kashmir with emphasis on job creation, skill development and sustainable development by attracting new investment and nurturing the existing ones, it added, However, we observe some shortfalls in the scheme which may act as severe impediments to meet the target if these shortfalls were not addressed well in time. It would be fruitful to provide some more incentives under the scheme besides taking a slew of other measures to comfort the existing ailing industry and bring it back to the rails”, the members further observed.

Shahid Kamili President FCIK informed the house on the occasion that the Chamber had “alarmed the Government that 85 percent of industrial units will close operations by next March  in case the present PM package of Rs 28400 cr is not extended to present existing industry and marketing support is not provided.” Mr Kamili also informed the EC members that the Chamber is  taking the matter with govt at  various levels but it seems as on date they are having negative approach towards the existing Industry. “If the govt is not serious than they should do golden handshake with unitholders rather than to sell dreams”, he said.

Jamie said that the unemployment rate of 21% has touched highest in the country which is alarming and eye opening for the government. The expected new investments of Rs. 21000 crores which the government has projected to come in the UT of J&K  from outside has yet to come, but on the other hand the government is withdrawing support to the existing Industrial Sector which has been committed in the 2016-26 Industrial Policy. The government has withdrawn the Incentive & Protection to the Industrial sector which includes Tax remission like in VAT regime, Marketing support, Purchase Preference, Price preference, Toll Tax, Entry tax etc.

The EC members also demanded the release of payments held with government departments, revival and rehabilitation of sick units, extension of provisional registration granted to unit holders and deferment of power dues accrued to Industrial Sector.