Srinagar, May 9: The Federation of Chambers of Industries Kashmir (FCIK) on Friday outlined six key contours for the forthcoming Industrial Policy in Jammu and Kashmir during an interaction with the government-constituted Drafting Committee on Ease of Doing Business and industrial reforms.
The FCIK delegation, led by Shahid Kamili, made a detailed presentation before the high-level committee headed by Shailender Kumar.
The meeting was also attended by Vikramjeet Singh and Amitava Chatterji, who are members of the committee.
In its submission, FCIK stressed that the revised Industrial Policy should focus not only on attracting new investment but also on consolidating and strengthening the existing industrial base in Jammu and Kashmir.
The federation said the most employment-intensive and cost-effective route to industrial growth in the Union Territory lay in preserving, reviving and modernising industries built over decades of private investment. It urged the government to prioritise revival, rehabilitation, modernisation and capacity utilisation of existing units while ensuring that new investment complements rather than bypasses local industry.
As part of its second key proposal, FCIK highlighted structural disadvantages faced by local industries, including geographical constraints, high logistics and energy costs, limited scale and restricted market access.
The federation called for a stronger public procurement framework to ensure fair market access for local MSMEs. It demanded purchase preference for local units, suitable tender conditions, segregation of supply and works contracts, stronger local filters on the Government e-Marketplace (GeM) portal, revival of procurement and marketing support through SICOP and timely payments to MSMEs.
On regulatory reforms, FCIK called for creation of a genuinely facilitative business environment through simplified compliance systems, rationalised fees, time-bound approvals, deemed clearances and transparent digital implementation.
The federation also urged region-sensitive credit delivery and relaxation of norms relating to CIBIL scores, external credit ratings and rigid asset classification in deserving MSME cases.
Highlighting the need for balanced industrial growth, FCIK stressed that the new policy should support sectors with strong local value addition and employment potential, particularly wood-based, mineral-based, agriculture-based and horticulture-based industries.
It also demanded upgradation of existing industrial estates and creation of new industrial infrastructure in underserved regions.
As part of its fifth major recommendation, FCIK urged the government to move away from fragmented and registration-linked incentives and instead adopt a broadly uniform incentive framework for existing, revived, expanding and new industrial units.
The federation proposed that incentives should be linked to actual investment, commencement of production, employment generation, labour welfare, green technologies and measurable value addition.
FCIK also flagged concerns over implementation of the New Central Sector Scheme (NCSS), stating that over 1,000 units registered under the scheme before the September 2024 cut-off were still awaiting approval because of limited funds, while already approved units continued to enjoy substantial fiscal benefits.
According to FCIK, this had created a policy imbalance, making it necessary for the revised Industrial Policy to provide a comparable incentive structure on the lines of NCSS to maintain competitive parity.
On implementation and monitoring, the federation said the success of any Industrial Policy would depend on effective execution rather than policy announcements alone.
It proposed measurable targets for investment, MSME support, employment and sectoral growth, along with multi-level oversight mechanisms, revival of the Industrial Advisory Council under the Chief Minister and creation of a dedicated grievance redressal mechanism.
FCIK also submitted a copy of its earlier comprehensive policy paper prepared after consultations with constituent industrial associations across Kashmir, saying the document reflected grassroots industrial concerns and structural realities faced by businesses in the region.
The federation further stressed the need for institutional strengthening of the Industries and Commerce Department through better coordination, staff augmentation and digitisation of service delivery.
It also called for preservation of the distinct functional roles of SIDCO in infrastructure development and SICOP in procurement and marketing support.
According to FCIK, the chairman and members of the Drafting Committee gave a patient hearing to the delegation, responded to several issues raised and assured that the recommendations would receive due consideration during formulation of the revised Industrial Policy.
Among those present at the meeting were Khalid Jehangir, Musarat-ul-Islam, Sudharshan Kumar, Khalid Majid and Shahid Saleem, besides senior officials and industry stakeholders.
