Srinagar, Feb 10: The Federation of Chambers of Industries Kashmir (FCIK) has urged the Government of Jammu and Kashmir to approve and announce long-pending power and VAT amnesty schemes for industrial enterprises during the ongoing budget session, citing severe financial stress faced by units across the Union Territory.
In a statement issued on Monday, FCIK said the proposed amnesties are critical for the survival and revival of existing industrial units that continue to struggle due to the combined impact of the COVID-19 pandemic, disruptions following the reorganisation of the erstwhile state, and changes in public procurement policy that have affected industrial activity.
The industry body pointed out that a large number of industrial units in Jammu and Kashmir have either turned sick or are on the verge of closure after prolonged periods of low or no production. According to FCIK, changes in procurement policy in 2019 led to a sharp decline in public procurement orders, resulting in underutilisation of sanctioned electricity loads by many units.
Due to financial constraints, several industrial units have defaulted on regular electricity payments to the Kashmir Power Distribution Corporation Limited (KPDCL). FCIK said electricity bills issued to these units include high demand charges and compounded interest, making repayment unviable for already distressed enterprises.
The chamber noted that over the past three years, the government had announced two amnesty schemes for domestic consumers, providing full waiver of interest and allowing payment based on actual electricity consumption through instalments. On similar lines, FCIK has demanded a power amnesty for industrial consumers, including waiver of demand charges, interest and surcharges, billing based on actual consumption, and the facility to clear arrears in 12 monthly instalments.
FCIK said the issue has been repeatedly taken up with the Chief Minister and the Chief Secretary, who had acknowledged the difficulties faced by the industrial sector and assured that the demand would be considered. However, the absence of any announcement in the budget proposals has caused disappointment among industrial stakeholders.
Despite this, FCIK expressed confidence in the in-principle agreement conveyed by the Chief Minister and said it hopes the power amnesty will be announced during the current budget session to provide much-needed relief to distressed industrial units.
The federation also raised serious concern over VAT-related notices being issued to industrial units for the pre-GST period, calling for urgent intervention to address the issue.
