PHDCCI recommends MSME relief, infrastructure upgrades in pre-budget meet with CM Omar

Srinagar: The PHD Chamber of Commerce & Industry Kashmir (PHDCCI-K) presented a detailed set of pre-budget recommendations to the Hon’ble Chief Minister of Jammu and Kashmir during a high-level consultation held at the Civil Secretariat on Tuesday.

The delegation, led by General Convenor Bilal Kawoosa and including members Haleem Bhat and Iqbal Fayaz Jan, outlined policy and fiscal interventions aimed at accelerating economic recovery and sustainable growth across the Union Territory. The Chief Minister affirmed the government’s commitment to fostering a business-friendly environment, engaging closely with the proposals. Key recommendations emphasized during the discussion include:

1. MSME Rescue and Revival

• Immediate Bailout Package: Financial assistance, tax relief, and debt restructuring for micro, small, and medium enterprises (MSMEs) excluded from existing credit-linked schemes.

• Rehabilitation of Struggling Units: Operationalizing Government Order No. 203-IND (2021) to provide soft loans and dedicated funds for reviving non-performing units.

• Structured Exit Framework: Support for distressed businesses to ensure orderly closures without damaging credit ratings.

2. Infrastructure Modernization

• Cluster Development: Proposals to establish a SFRUTI Cluster in Bandipora (focusing on handicrafts) and a Textile Park in Ganderbal under the Micro and Small Enterprises-Cluster Development Programme (MSE-CDP).

• GI Promotion: Creation of Geographical Indication (GI) Marts in Srinagar and tourist hubs to promote authentic local products like Pashmina and walnut wood carvings.

• Industrial Estate Upgrades: Modernization of facilities, including the Integrated Textile & Handicraft Park in Zakura, to enhance productivity.

3. Fiscal Reforms and Policy Shifts

• Protectionist Measures: Reintroduction of entry tax at Lakhanpur to safeguard local industries from external competition.

• Public Sector Disinvestment: Strategic divestment of non-functional public sector units (PSUs) to mobilize resources.

• Scheme Acceleration: Expedited implementation of SAMAGRA-2, wool development initiatives, and handicraft programs to address sectoral delays.

4. Public-Private Partnerships (PPP) A proposal to revitalize defunct government assets—including JKI Silk/Wool units, Kashmir Haat, and SICOP/SIDCO estates—through special purpose vehicles (SPVs) to generate employment and optimize underutilized infrastructure.

5. Sector-Specific Interventions

• Wool Sector Support: Establishment of a revolving fund under the Holistic Agriculture Development Programme (HADP) for raw wool procurement to stabilize supply chains.

• Tourism Boost: Meghalaya-inspired subsidies for homestay ventures to diversify lodging options and promote rural tourism.

• Waste-to-Energy Project: Funding for a sustainable waste management facility at Achan, Srinagar, to address urban pollution. Additional Proposals

• Staff Rationalization: Resolution of pending mergers between the Handicraft and Handloom Directorates to streamline operations.

• Exhibition Support: Waiver of rental fees for MSMEs participating in national and international trade fairs.

• Livestock Initiatives: Budgetary support for breed multiplication farms following the discontinuation of central schemes.

Bilal Kawoosa, General Convenor of PHDCCI-K, highlighted the urgency of the proposals: “Our recommendations address systemic bottlenecks hindering J&K’s economic potential. From MSME revival to infrastructure modernization, these steps will create a resilient ecosystem for businesses. We appreciate the Chief Minister’s proactive engagement and trust these measures will be prioritized.”