Faced with 90% NPA accounts, FCIK says existing units could eradicate 50% unemployment in 1 year, if supported

11 June 2023

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Srinagar, June 11: The existing industry has the potential to eradicate 50% of unemployment in J&K, besides improving their contribution to GDP, in just 1 year provided that its abysmal status was altered through a concrete policy intervention by the government. Shickingly, 90% of bank accounts of the industrial units were set to turn NPAs within next one year, while 80% of the units had either closed their operations or were running on meager capacities.

This was stated by leaders of industrial fraternity at an interactive session on “Status and Potential of existing industry” organised by Association of Integrated Textile and Handicrafts Park Zakura (AITHP). The event, among others, was participated by the incumbent Commissioner cum Secretary I&C Vikramjeet Singh, Director Handicrafts and I&C Kashmir, Mehmood Shah, General Manager DIC Srinagar Hamida Akhter, General Manager SICOP Waseem Ahmad, AD MSME Suhail Allaqaband, Officers of J&K Trade Promotion Organisation, I&C, SICOP besides President FCIK Shahid Kamili, Industry Chieftains Shakeel Qalander, M. Ashraf Mir, Afaq Qadiri, Syed Fazal Illahi, Mohammad Rafique, Yasir Shams, office bearers and general members of AITHP.

The day-long session deliberated upon the apathy of existing industry and regretted that the present status of industry was worrisome for the reason that about 80% of the units had either closed their operations or were running on meager capacities with revenue collection below their break-even point.

In his presentation, former President FCIK Mohammad Ashraf Mir informed that the units could not sustain the brunt of drastic and unilateral changes made in the industrial policy after 2019 which took away their very viability. He referred to the withdrawal of marketing support by the government including the incentives granted under industrial policy of 2016 with the objective of equalizing the additional costs of local manufacturers incurred in lieu of tail end position, lack of fool-proof communication, harsh weather conditions, expensive labour costs etc.

He also cautioned the government on rising bad loans and said that if the current trend continued, 90% bank accounts of the industrial units were set to turn NPAs within next one year. He, however, claimed that with suitable policy intervention, adherence to the provisions of 2016 policy and extension of Central Incentive Scheme of 2021 to existing industry could turn around the things not only to bring it back to rails but had the potential to enhance on all economic parameters and GDP. He also said that the rejuvenated industry had potential to absorb 50% of unemployed youth in the units owing to the fact that they had very little to add to their existing infrastructure to prepare for new challenges.

President AITHP Syed Afaq Qadiri endorsed the views of Ashraf Mir and also made an elaborate presentation on deficiencies of infrastructure in the estate which included compound walling, drainage system, effluent treatment plant, macadamisation of roads etc. He said that 84 units out of 87 in the estate were operational and engaged in different handicraft and textile lines of activities, all of which come under green category. He demanded that as such the entire estate be declared as Green estate and kept out of bound of certifications from Pollution Control Board. He also demanded conversion of leasehold plots into freehold industrial plots.

The Commissioner cum Secretary Vikramjeet Singh while interacting with the unit holders assured them of resolution to all their genuine problems. He passed on the spot instructions to officers of I&C and SICOP for execution of incomplete works and maintenance of the estate. He said that after having visits of various industrial estates in the valley, he will sit with the apex industrial organisation to chart out the required policy interventions in order to take these up with relevant quarters.

Director Handicrafts and I&C Mehmood Shah while hailing the seriousness of incumbent Commissioner said that within days of his joining the department, he had made it a point to initiate visits of industrial estates and other wings of the department to take stock of things from grassroots.

Earlier AD MSME Suhail Allaqaband gave an overview of the available schemes of ministry of MSME. Vice President AITHP Yasir Shams presented vote of thanks.