Srinagar: The Federation of Chambers of Industries Kashmir (FCIK) has called on Jammu & Kashmir’s Chief Minister Omar Abdullah and Deputy Chief Minister Surinder Kumar Chowdhary to take decisive and immediate action to provide a ‘clean slate’ to the industrial community, offering relief from previous defaults in areas such as power, taxes, loans, and regulatory matters.
FCIK emphasized that this call is a critical confidence-building measure (CBM), aimed at restoring faith in the region’s industrial future and advancing a cohesive industrialization agenda.
FCIK stated that over the years, MSMEs have felt excluded from policies designed to support growth, leading to a gradual erosion of trust and confidence in the government.
While acknowledging the hope sparked by the new government, especially with the Chief Minister’s reiteration of his commitment to rejuvenating the industrial setup and attracting prospective investments, the Federation also noted that the recent budget presented in the Legislative Assembly has further fueled optimism.
Measures such as policy reviews, increased reservation in public procurement, and a renewed commitment to involving stakeholders in decision-making have raised hopes among local MSMEs. However, FCIK stressed that these initiatives must be followed by concrete actions to provide immediate relief and address long-standing grievances.
“The optimism created by the new government must be swiftly transformed into tangible action before any doubts or frustrations can take root,” said Shahid Kamili, President of FCIK.
He emphasized the need for launching an amnesty scheme to address the long-standing arrears in power bills, outstanding VAT tax demands, and other regulatory hurdles, as these steps are essential for revitalizing the industrial sector and regaining the trust of local businesses.
The President further explained that the Federation had outlined these concerns in a marathon meeting with the Chief Minister shortly after his assumption of office, proposing several key measures to alleviate the financial burdens on local industries and foster sustainable growth.
“The CM’s prompt acknowledgment of the industrial community’s challenges and his assurance for an early resolution has inspired optimism, with a clear commitment to addressing the issues facing MSMEs,” Kamili added.
A major issue that FCIK continues to highlight is the substantial arrears owed by industrial units for power bills, exacerbated by disruptions due to the reorganization process and the COVID-19 pandemic. Despite minimal or no use of electricity during this period, businesses are grappling with high demand charges and accumulated interest on overdue payments.
FCIK has recommended a full waiver of demand charges and interest, with the remaining arrears on actual consumption basis to be paid over 24 installments alongside current monthly bills.
Additionally, many industrial units are burdened with VAT arrears despite prior exemptions and the transition to GST.
FCIK has urged the government to honor these previous exemptions under the VAT remission mechanism and provide a clean slate for all outstanding VAT demands, which would ease the financial pressure on these businesses.
FCIK has also requested one-time relief for older industrial units facing challenges with land lease deeds or those that have changed ownership. This would enable the regularization of these agreements, providing legal certainty and operational stability to these businesses.
Furthermore, the Federation has reiterated its demand for a non-discretionary, non-discriminatory One-Time Settlement (OTS) Scheme through J&K Bank. FCIK has called for deliberations between the government, the lead bank, and relevant stakeholders to devise a viable scheme that offers relief to industrial units struggling with outstanding loans.
FCIK believes that these initiatives can help the government rebuild trust within the industrial community and foster a sustainable industrial ecosystem in Jammu & Kashmir. The Federation remains hopeful that the new government will prioritize these measures to support the region’s industrial growth and economic contribution.
