Srinagar: The Federation of Chambers of Industries Kashmir (FCIK) has sought the intervention of Chief Minister Omar Abdullah to ensure “Ease of Living” for entrepreneurs in Jammu and Kashmir, stating that the much-touted “Ease of Doing Business” remains largely confined to policy documents and has little reflection on the ground.
In a statement issued on Tuesday, the apex industrial body said entrepreneurs in the Union Territory spend an inordinate amount of time navigating renewals, permissions and no-objection certificates (NOCs) across multiple government offices, instead of focusing on business operations. This, it said, is draining productivity, discouraging enterprise and weakening the local industrial ecosystem.
FCIK pointed out that business owners are required to obtain prior approvals for routine and legally permissible decisions such as induction of partners or directors, change in business constitution, diversification of activities or transfer of industrial units, including to legal heirs. Such actions, the chamber said, are treated as regulatory events in J&K, unlike in other regions where entrepreneurs are trusted unless activities fall under a prohibited category.
Highlighting ground realities, FCIK cited the example of micro units manufacturing wooden fruit boxes, a key seasonal industry supporting Kashmir’s horticulture sector. These units, it said, face prolonged delays in obtaining renewals from the Forest Department, which require multiple clearances, including consents from the Pollution Control Committee. In turn, the committee seeks NOCs from departments such as Fire Services and local bodies, creating a circular process that often takes months.
The chamber also raised concerns over inconsistent interpretation of industrial policy incentives, including stamp duty exemptions, by different directorates, saying such arbitrariness undermines investor confidence. It further flagged the cumbersome process involved in transferring industrial units to legal heirs, describing it as a bureaucratic ordeal that disrupts ongoing businesses and causes distress to families.
Questioning the rationale behind repeated renewals of licences and approvals, FCIK said such permissions should be valid indefinitely and cancelled only in cases of serious violations. It cited the recent move by pollution authorities to grant Consent to Operate with indefinite validity as a model for other departments to follow.
FCIK also criticised what it termed revenue-oriented practices by the Industries and Commerce Department and its allied PSUs, including the non-refundable ₹10,000 deposit for industrial plot applications and the demand for additional land premiums through supplementary lease deeds for routine changes.
Noting that several states have adopted time-bound single-window systems, self-certification and deemed approvals, FCIK urged Jammu and Kashmir to align with national best practices. The chamber said it had raised these concerns in a pre-budget meeting with the Chief Minister, seeking comprehensive reforms such as digital approvals, auto-renewals, a single umbrella NOC and rationalisation of fees.
Emphasising that excessive controls and repeated fees cannot drive industrial growth, FCIK called for a trust-based, facilitative and entrepreneur-friendly regulatory framework to enable MSMEs to survive, grow and generate employment in the region.
