Srinagar, Nov 3 – A team from the Kashmir Chamber of Commerce & Industry (KCCI) met with the Departmental Parliamentary Standing Committee on Industry on November 3, 2023, in Srinagar. The KCCI team was led by Senior Vice President Ashaq Hussain Shangloo and included Secretary General Faiz Bakshi, Joint Secretary General Umar Nazir Tibetbaqal, EC Member Dr. Touseef Ahmad, and Bilal Ahmad Bhat. The Chief Secretary Dr. Arun Kumar Mehta, Commissioner/Secretary Industries & Commerce Vikramjit Singh, Director Industries Mehmood Shah, Joint Director MSME, and other senior officials were also present.
The KCCI made a presentation to the committee and made recommendations on the following topics:
- Infrastructure challenges: The lack of infrastructure hinders industrial expansion in Jammu and Kashmir. The KCCI recommended that industrial estates be developed before land is allotted, that the time to start operation of the unit be extended from 3 to 5 years, and that NOCs/clearances be issued within fixed deadlines.
- Geographical challenges: The adverse geographical location, the difficult terrain, inclement weather conditions, limited working season, short working hours, and unreliable Srinagar-Jammu National Highway make transportation of raw material and finished goods a complex task. The KCCI recommended that the Kashmir Valley be given special treatment for incentives.
- Multiple industrial policies: Jammu and Kashmir currently has 3 industrial policies on paper. The change of industrial policies, rules and regulations, and incentive schemes midway causes confusion and tremendous hardship to entrepreneurs. The KCCI recommended that new industrial policies should be in continuation with and not in suppression of existing policies.
- Skill development: The region faces a shortage of skilled labour/technicians. The KCCI recommended that skill development centres be established for specific industries within various industrial estates/clusters.
- Revival of sick units: Many units are sick due to various controllable or uncontrollable factors. The KCCI recommended that a survey of sick units be made and that a corpus be approved for revival and rehabilitation.
- Access to finance: Access to capital is limited and hampers the growth of MSMEs. The KCCI recommended that the government provide some incentive for this type of finance.
- Sector specific policy: The industrial policy needs to be sector specific. The KCCI recommended that the policy have small sub-sets for various sectors to take care of sector-specific issues.
- Reduction in negative list: The list of negative items included in the industrial policy need to be reduced. The KCCI recommended that items like marble and granite be removed from the negative list.
- Hospitality and protocol sector: The KCCI recommended that the hospitality and protocol sector be incorporated under National Index Code (NIC) and that tourism be included in the organised sector on demand basis.
- Condonation of delay of time barred incentive cases: The KCCI recommended that the delay of time barred incentive cases of IDS & CSS be condoned.
- Land use criteria: The KCCI recommended that units that have come into production and granted formal registration be exempted from change in land use since the Act was not in force at the time of allotment.
- Incentive eligibility criteria: The KCCI recommended that the date of formal registration be treated as eligibility criteria for the purpose of claim of incentives instead of the 1-4-2019 cut off date fixed under the new policy.
- Under PMEGP scheme: The KCCI recommended that all three incentives (CIS, CII, GSTLI) be offered under the PMEGP scheme.
- IDS – 2017: The KCCI recommended that clarification be provided regarding Clause 9.1 of IDS – 2017.
- Identification of local items: The KCCI recommended that products and works procured or executed by government departments and PSUs be identified and reserved for local manufacturers for at least 10 years.
- Single line activity estates: The KCCI recommended that the possibility of developing high potential single line of activity based industrial estates be explored.
- Information technology sector: The KCCI recommended that the following specific attention be given to the information technology sector in the industrial policy:
- Infrastructure development: Investment in infrastructure development is needed to support the growth of the information technology sector.
- Human capital development: The government should invest in human capital development to create a pool of skilled workers for the information technology sector.
- Policy support: The government should provide policy support to the information technology sector, such as tax breaks and subsidies.
The KCCI team also discussed other issues with the committee, such as the need for a more supportive business environment and the need to improve connectivity. The committee members listened to the KCCI team’s concerns and promised to take them with the concerned authorities.
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