Srinagar, May 2: The Federation of Chambers of Industries Kashmir (FCIK) has announced that it will soon submit a comprehensive white paper to Prime Minister Narendra Modi highlighting concerns over the implementation of the New Central Sector Scheme (NCSS) in Jammu and Kashmir, alleging significant regional and district-level imbalances.
Copies of the white paper will also be sent to Union Home Minister Amit Shah, Lieutenant Governor Manoj Sinha, and Chief Minister Omar Abdullah.
The decision was taken during a meeting of FCIK’s Advisory Committee chaired by Shahid Kamili, which was attended by presidents of industrial estate associations, district representatives, and sectoral bodies from across the Kashmir Valley. The meeting reviewed a recent rejoinder issued by the Industries and Commerce Department responding to media reports that questioned the ease of doing business in the Union Territory and highlighted distress among existing industries.
In its statement, the chamber said the Government of India had approved an incentive package of ₹28,400 crore under NCSS with the objective of ensuring balanced industrial growth at the block level, expanding industrialisation to underserved districts, and generating employment. The scheme offers capital incentives, interest support, and fiscal assistance aimed at transforming the region’s industrial landscape.
While acknowledging that the scheme has attracted substantial investor interest, FCIK said the concern lies not in the volume of investment proposals but in the manner in which benefits have been distributed and implemented.
Citing data from the Department for Promotion of Industry and Internal Trade (DPIIT), the chamber noted that of 2,346 applications received until September 30, 2024, only 918 registrations were approved, while 1,204 remain pending. On the claims side, 6,203 claims were submitted, 3,338 approved, but only 1,886 disbursed, indicating delays in translating approvals into actual industrial activity on the ground.
The chamber highlighted stark district-level disparities in implementation. Industrial activity remains concentrated in established corridors such as Kathua, Samba, and Jammu in the Jammu division, and Pulwama, Srinagar, and Budgam in the Kashmir division. In contrast, districts including Doda, Kishtwar, Ramban, Rajouri, Poonch, Udhampur, Reasi, Kupwara, Baramulla, Bandipora, Ganderbal, Kulgam, Anantnag, and Shopian have seen minimal or negligible benefits.
Regional disparities were also flagged, with Jammu accounting for nearly 65 percent of registrations and 62 percent of claims, compared to Kashmir’s 35 percent share of registrations and 38 percent of claims. The chamber further pointed out that Kashmir has faced a significantly higher rejection rate of 15.4 percent, compared to 6 percent in Jammu.
FCIK also raised concerns about the concentration of incentives among a small number of units. According to the chamber, 18 units alone account for approvals worth approximately ₹20,098.40 crore, with most of these investments located in a single region. The Advisory Committee questioned why such large-scale investments were not geographically distributed to ensure wider employment generation and equitable industrial growth.
The chamber has sought full public disclosure of the ₹2,513 crore already disbursed under the scheme, including details of beneficiaries, amounts received by each unit, and the proportion of funds allocated to existing enterprises versus new entrants.
Calling for corrective measures, FCIK urged the Jammu and Kashmir government to constitute an independent high-level committee to examine whether the implementation of NCSS aligns with its original objective of balanced, block-level development.
The Advisory Committee also endorsed recent media reports highlighting industrial distress, policy bottlenecks, and a widening gap between official claims and ground realities. It observed that the government’s emphasis on rising Udyam Registration numbers and improved Business Reform Action Plan (BRAP) rankings does not adequately address the operational challenges faced by industries.
“A surge in Udyam registrations reflects formalisation, not necessarily functional viability,” the chamber noted, adding that high BRAP rankings indicate compliance with reform benchmarks but do not negate the institutional and operational hurdles confronting enterprises.
FCIK said the forthcoming white paper would present a detailed analysis of these issues and propose policy interventions aimed at ensuring more equitable and effective implementation of the NCSS across Jammu and Kashmir.
