Ziraat Times News Desk
SRINAGAR, Feb 3: The Federation of Chambers of Industries Kashmir (FCIK) has urged Chief Minister Omar Abdullah to intervene with concerned Central Ministries to seek relaxation of procurement and qualification norms under Centrally Sponsored Schemes and projects executed through Central Public Sector Enterprises (CPSEs), cautioning that large public investments in Jammu & Kashmir are increasingly bypassing local micro, small and medium enterprises (MSMEs).
In a statement issued at the conclusion of a two-day CPSE-level Vendor Development Programme at the Sher-i-Kashmir International Conference Centre (SKICC), Srinagar, FCIK said that without policy-level intervention, development projects would continue to benefit outside entities, undermining local employment generation, capacity building and economic empowerment.
The programme, organised by the Ministry of MSME, was attended by representatives of several CPSEs and agencies including IOCL, BPCL, NHPC, NSIC, GeM, FCI, HPCL, Power Grid Corporation, CPWD and NHAI. During the event, CPSE representatives made detailed presentations on their procurement and execution procedures.
While CPSEs reiterated adherence to the Central Public Procurement Policy mandating 25 per cent procurement from Micro and Small Enterprises, they clarified that no distinction is made between local and non-local MSEs. CPSE officials said they were unable to provide purchase or work preference to local enterprises unless enabled through special provisions or relaxations approved by their respective Ministries in consultation with the Union Territory government.
Expressing concern, FCIK said thousands of crores worth of Centrally Sponsored and Central Sector projects are being implemented in the Union Territory through CPSEs and, in some cases, UT-level public sector undertakings strictly governed by central procurement norms. It said high turnover thresholds, bundled works, large-volume supply conditions and stringent experience requirements were effectively excluding local manufacturers and contractors from the bidding process.
“This situation is both astonishing and deeply concerning,” the Federation said, adding that projects intended to spur development in Jammu and Kashmir are largely being executed by outside agencies, leaving local industrial capacity underutilised and depriving the region of employment, skill development and industrial growth.
FCIK maintained that even partial routing of such projects through local enterprises could significantly strengthen local capacities and create sustainable employment. Citing a past precedent, the Federation recalled that engagement by the then State Government with the Ministry of Railways had resulted in directions to IRCON to extend purchase preference to local enterprises, benefiting hundreds of units and generating substantial employment.
The concluding session of the vendor development programme was presided over by Director Industries and Commerce, Kashmir, Khalid Majid, who agreed to take up the matter with higher authorities and explore measures to ensure that local enterprises benefit from ongoing projects. He also said the Union Territory government’s revised Procurement Policy, currently under review, would focus on strengthening local enterprises in public procurement.
On the first day of the programme, Director Handicrafts and Handlooms Masarat-ul-Islam and Managing Director, KPDCL, Mehmood Ahmad Shah addressed participants and shared insights related to sectoral opportunities. Joint Director, MSME, Amit Kumar Tamaria delivered the keynote address and assured full support from the Ministry of MSME to local enterprises.
The welcome address was delivered by Assistant Director, MSME, Suhail Allaqaband, who said similar programmes would be organised regularly. A large number of industry leaders from across the Valley participated in the event under the banner of FCIK, led by Shahid Kamili, raising issues related to procurement practices and engaging in detailed discussions with Government e-Marketplace representatives on operational challenges.
