Srinagar, Oct 5: In its meeting with Home Minister Amit Shah on Wednesday, Federation Chamber of Industries Kashmir (FCIK) highlighted the “dire condition of the existing enterprises”, which, according to it, may have an adverse impact on the prospective investors’ confidence, compromising government’s industrialization push in J&K.
“The situation is alarming and before it turns uglier, FCIK demands immediate interventions to constitute a time-bound Task Force or a High Level Committee (HLC) for recommending slew of measures necessary for survival, revival and sustainability of business enterprises in Kashmir. Our organization may kindly be made part of the Task force/ committee. Further, to put all harsh, punitive and coercive action by Banks, Tax, Labour and other government departments against defaulting enterprises on hold till the recommendations of Task force/ committee and subsequent approval to these by the competent authority”, team FCIK, led by its president Shahid Kamili, said.
Here is the full text of the memorandum submitted by FCIK:
Shri. Amit Shah Ji,
Hon’ble Home Minister,
Government of India.
Dear Sir,
We take an opportunity to introduce Federation of Chambers of Industries Kashmir (FCIK) as an apex organization of over 100 industrial associations established in the length and breadth of Kashmir valley. FCIK has been engaged in projecting and taking up various issues and problems faced by enterprises with the governments at local and central levels for their mitigation and redressal. FCIK has been representing industrial sector in almost all high level committees and boards of the local government. FCIK in the past has served as a member on PM’s Task Force on MSMEs, MSME Board and other boards and committees.
Kashmir enterprises are currently passing through a worst ever situation that has brought them on the brink of closure and extinction. During the past three decades of un-conducive working atmosphere, the enterprises have suffered immense losses because of frequent business interruptions. The miseries got doubled during past over one decade with volatile situation in 2008, 2009, 2010, 2016,2019 followed by subsequent lockdowns which was further followed by Covid-19 impact of which remained till 2021.
The resultant effect of this situation is that the capital and the borrowings of enterprises have dried up and the number of NPAs and stressed accounts in banks has increased. The retrenchment of labour is taking place at a fast track adding alarmingly to already high ratio of unemployment. The productivity has drastically reduced because of low demand in the market as well as change in government procurement policy.
The pitiable condition of the existing enterprises may definitely have its impact on the prospective investors’ confidence that in turn has the potential to adversely affect the massive industrialization program of the your government.
The situation is alarming and before it turns uglier, we may kindly request you for the following immediate interventions:
1. To constitute a time-bound Task Force or a High level committee for recommending slew of measures necessary for survival, revival and sustainability of business enterprises in Kashmir. Our organization may kindly be made part of the Task force/ committee.
2. To put all harsh, punitive and coercive action by Banks, Tax, Labour and other government departments against defaulting enterprises on hold till the recommendations of Task force/ committee and subsequent approval to these by the competent authority.
3. To direct the UT government for affording price and purchase preference to local enterprises in all Government procurements.
4. To direct all banks operating in Jammu and Kashmir for launching a uniform and non-discriminatory liberal OTS scheme for accounts that have turned NPAs.
5. To earmark a portion of recently announced PM package of incentive scheme of 28400 Crores for marketing, expansion, revival and sustainability of existing business enterprises.
Your timely intervention in all above issues will save the investment of thousands of crores made by the existing enterprises. Since you being the Chairperson of Group of Ministers (GOM) for Prime Ministers Package, we request you to consider our above mentioned suggestion.
