Srinagar, Nov 21: Federation Chamber of Industries Kashmir (FCIK) in a recent chamber meeting on industrial zone categorisation has demanded to declare Kashmir valley in Zone B of industrial land zonation system.
Pertinently, the government has formulated committee to look into the zonation of Kashmir Divisions vide order no: DI&C/Dev/522/2022/2302-13 Dt: 31.10.2022. The geographical areas of Kashmir valley have been divided into zone A & Zone B for the purpose of land value as per Industrial land allotment policy and to provide incentives as per State & Central Industrial Policy.
The Zone A is having higher land value & lower incentives while as Zone B is having lesser land value & higher incentives than Zone A.
FCIK has taken up the issue of disparity in zones at various high levels which includes esteemed members of visiting Parliamentary delegation, Home Minister of India, MOS Finance GOI, MOS Commerce GOI, Lt Governor UT of J&K and also at Administrative levels which includes Jt Secretary DPIIT, Chief Secretary UT of J&K & others.
FCIK Secretary General, Ovees Qadir Jamie in a recent meeting on zonation has demanded to declare Kashmir valley in zone B.
He said 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.
Jamie said that the industrial policies and schemes launched by the central and state governments particularly during past three decades have miserably failed both in mitigating the growing problems of existing enterprises or attracting prospective investments in the sector. The important incentives which have been excluded from the current industrial policy of 2021 which was acting as Cost equalizing measures &stimulus are like Price preference, Purchase Preference, Cost of tender document, earnest money and security deposit, freight subsidy, Income Tax holiday & Tax remission as in previous VAT regime.
He said, the earlier Industrial policies had led to inequalities in industrial development across 22 districts of the erstwhile state as whatever new investment as an outcome to this package was made only in 3 districts of Jammu leaving 19 other districts high and dry and accordingly majority of incentives were disbursed in 3 districts of Jammu. FCIK has observed shortfalls in the policies which may act as severe impediments to meet the target if these shortfalls were not addressed well in time. The one of the issue is declaring the Kashmir Valley in Zone A & B.
The perpetual huge business losses caused because of various interruptions have not only hampered the growth of enterprises but also forced a large number to close down their operations. Whereas the industry was not compensated for any such losses, it was forced to pay bank interest, idle wages and salaries, statutory taxes and other establishment expenses. FCIK demands that the government should keep the constraints which the industrial community in Kashmir valley is facing while declaring the zones and without disparity whole valley should be declared as zone B.
