Srinagar, May 8: The Kashmir Chamber of Commerce and Industry (KCCI) on Thursday submitted a detailed 12-point memorandum to the Jammu and Kashmir government, seeking wide-ranging reforms in industrial policy, ease of doing business, financial relief measures and infrastructure development for the business sector in the Union Territory.
The memorandum was presented during a high-level stakeholder consultation organised jointly by the Finance Department and Industries and Commerce Department in Srinagar.
The KCCI delegation, led by President Javid Ahmad Tenga, included Farooq Amin, Ashiq Hussain Shangloo and Gowhar Maqbool. The memorandum was submitted to Shailendra Kumar.
The meeting was also attended by Vikramjit Singh and Amitava Chatterjee.
In its submission, KCCI said that despite repeated claims of reform, businesses in Jammu and Kashmir continue to face procedural delays, weak infrastructure, policy uncertainty and excessive compliance burdens. The Chamber urged the government to incorporate practical and enforceable measures in the proposed Industrial Policy.
Among its key demands, KCCI called for complete digitisation of approvals and clearances, saying entrepreneurs still have to visit multiple departments physically despite the existence of online systems and single-window mechanisms. It sought integrated departmental clearances and time-bound deemed approvals.
The Chamber also highlighted infrastructure deficiencies in several industrial estates, stating that many continue to lack proper roads, electricity, water supply and internet connectivity. It specifically pointed to delays in handing over physical possession of industrial plots at Tulbal Sopore and Sempora Pampore, despite lease deeds having been executed nearly three years ago.
KCCI raised concerns regarding implementation of the New Central Sector Scheme (NCSS) 2021, alleging regional imbalance in distribution of incentives under the ₹28,400 crore scheme. It demanded extension of the scheme till 2035, enhancement of the financial outlay by ₹75,000 crore and reservation of 25 per cent benefits for local entrepreneurs.
The Chamber further demanded inclusion of existing industrial units undertaking substantial expansion under the incentive framework.
Referring to industrial policies in states such as Maharashtra, Telangana, Gujarat, Kerala and Tamil Nadu, KCCI said Jammu and Kashmir’s regulatory framework lagged behind national best practices. It proposed reforms including reduction in transfer fees, 30-day deemed approvals, abolition of FAR utilisation fees and adoption of a “same beneficial owner” principle.
The Chamber also called for introduction of a dedicated Sick Unit Revival Policy.
Seeking greater marketing support for local businesses, KCCI proposed creation of a dedicated MSME Marketing and Branding Mission for Jammu and Kashmir. It also demanded legal protection for a “Made in Kashmir” brand, assistance for participation in trade fairs, support for e-commerce onboarding and freight subsidies for exporters.
The Chamber noted that handicraft exports from Jammu and Kashmir exceed ₹733 crore annually.
On public procurement, KCCI said the mandatory 25 per cent procurement quota for MSMEs under the MSMED Act was not being implemented effectively in the Union Territory. It demanded that the reserved quota be sourced specifically from locally registered MSMEs and that procurement data be disclosed quarterly.
The memorandum also sought incentives for automation, energy efficiency, green technologies and industrial modernisation to improve productivity and competitiveness.
KCCI further demanded that industrial units established before formal notification of the new Industrial Policy should remain eligible for incentives through a clearly defined cut-off mechanism.
The Chamber criticised the existing industrial land allotment ranking system, alleging excessive emphasis on projected employment generation without proper verification. It sought transparent scoring criteria and post-allotment verification through EPFO and ESIC records.
Among other demands, KCCI sought extension of proposed 100 per cent stamp duty exemption to industrial units operating on private land, stating that nearly 60 per cent of industries in Jammu and Kashmir function outside government industrial estates.
Highlighting the high cost of insurance in the region, the Chamber demanded full premium subvention for industrial insurance and workmen compensation policies. It also proposed a 75 per cent capital subsidy for rooftop solar installations to reduce dependence on costly grid and diesel power.
KCCI additionally called for a one-time loan restructuring package for businesses affected by civil disturbances, natural disasters and policy disruptions, and urged banks including Jammu and Kashmir Bank to provide immediate relief to stressed units.
Speaking during the consultation, Javid Ahmad Tenga said the recommendations reflected the ground realities faced by businesses in Kashmir and stressed that the upcoming Industrial Policy should move beyond symbolic reforms.
According to KCCI, the committee assured participants that the memorandum and recommendations would be considered during finalisation of the revised Industrial Policy.
