Srinagar: Pinning high hopes on the Prime Minister’s visit to Kashmir, the Federation of Chambers of Industries Kashmir (FCIK) has invited his august attention towards the “ailing industrial sector in Jammu and Kashmir pleading for rejuvenation by administering triple-therapy followed by other treatments.”
The triple-therapy demanded include earmarking of 25% funds from Central Industrial Scheme for existing industry, substantial procurement of identified industrial goods from local industry under Public Procurement Policy and structured mechanism for hassle-free credit flow / banking services to MSMEs.
While hailing the vision of PM Modi for industrial development in Jammu and Kashmir with his approval for an incentive scheme of Rs 28400 Crores in 2021, the apex chamber observed that booking of expenditure under the scheme would take place only after setting up of new enterprises on ground which was likely to take some time owing infrastructural constraints though the UT government was putting in hard efforts for the same.
FCIK has solicited approval of Prime Minister for earmarking 25% of CIDS-2021 for around 40000 existing industrial units towards their revival, rehabilitation, diversification, expansion, scaling up, modernization and up-gradation. The sum earmarked could be utilized for incentives provided under the CIS besides funding the incentives provided under UT government schemes and policies including those of revival of sick units, turnover incentive, GST reimbursement etc.
The FCIK expressed confidence that upon their rejuvenation, the existing units had the potential to bounce back with renewed vigor and energy to contribute in the economic development and employment generation of J&K in consonance with the vision and efforts of Hon’ble Prime Minister.
“The new initiative would pave way for optimum capacity utilization of the existing units which doesn’t surpass even the break-even point presently” stated FCIK.
While flagging the issue of marketing, FCIK has sought intervention of the Prime Minister for his directions to reserve substantial portion of industrial goods being procured by the UT/ Central government departments/ PSUs for local manufacturers and processors. FCIK invited the attention of Prime Minister that most of the local manufacturers and processors had been rendered workless after the UT government directed its subordinate departments and Public Sector Undertakings for making their purchases through GeM portal where the local units were unable to compete with their counterparts from industrially advanced states for many reasons. FCIK has also advocated encouragement and incentives for the units that sought to meet demand outside the region.
Inviting the kind attention of Prime Minister towards the “sluggish credit flow and reluctance of banks in funding industrial units under approved schemes including Credit Guarantee Trust Scheme for Micro, Small and Medium Enterprises (CGTMSE)”, the industrial body has demanded a foolproof structured mechanism for ensuring and monitoring smooth credit flow to MSMEs of Jammu and Kashmir under all available schemes.
Besides, FCIK has also sought intervention of the Prime Minister to resolve NPAs with a direction for a uniform and non-discriminatory out-of-box OTS scheme for enterprises of Jammu and Kashmir.
