KCCI team meets and apprises Commr Secty Industries of key economic issues

8 May 2024

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Srinagar: A Kashmir Chamber of Commerce & Industry (KCCI) team, led by President Javid Ahmad Tenga, held an interactive meeting with Commissioner of Industries & Commerce Vikramjit Singh on June 7 in Srinagar. The KCCI team included Senior Vice President Ashaq Hussain Shangloo, Secretary General Faiz Bakshi, EC member Mohammad Lateef Bhat, Bilal Ahmad Bhat, and the Director SICOP. Also present were the Director of Industries and Commerce, the Managing Director of JKTPO, and other officers of I & C and Handicrafts.

According to a press statement issued to Ziraat Times, the following issues were discussed comprehensively during the meeting:

1. Upgrading of GI Tagging Infrastructure:

The KCCI reiterated the urgent need for upgrading the GI tagging infrastructure due to increasing demand for GI tagged Pashmina and related items worldwide. Presently, due to limited infrastructure and manpower shortages in CDI, the tagging activity is progressing slowly. This results in significant delays in certification, affecting exportation timelines and causing concerns for international buyers. The Commissioner was briefed on the cancellation of numerous orders and the expiration of Letters of Credit due to delays in GI Certification. Consequently, the Commissioner promptly prioritized the GI Certification process for exportable shipments under Letter of Credit.

2. HSN CODE OF SHAWLS:

The KCCI raised concerns regarding the HSN Code for Pashmina and other value-added shawls. Currently, the drawback cap under the HSN Code is insufficient to cover Pashmina and other value-added shawls produced in Kashmir. The Commissioner was informed of KCCI’s efforts to address this issue with the Union Ministry of Commerce. He assured that his department would also pursue the matter at the appropriate level.

3. INDUSTRY:

(A) The KCCI discussed expanding the industrial base by establishing robust infrastructure in newly identified estates, including power supply, road connectivity, and land development. They proposed changing the land allotment policy to ensure that allotments are made after infrastructure development, with operations starting within five years instead of the current three. Additionally, they emphasized the need for timely issuance of NOCs/Clearances under a Single Window System to avoid delays in unit commencement.

(B) The KCCI urged the Commissioner to modify the Ranking Policy for Land Allotment to Employability, which they deemed lopsided and unrealistic.

(C) INDUSTRIAL POLICY: The KCCI advocated for continuing the incentives provided under the 2016 Industrial Policy rather than adopting a suppression policy, suggesting the merger of all industrial policies.

(D) REHABILITATION OF SICK UNITS: The KCCI proposed forming a joint Appraisal Committee to identify sick units on a case-by-case basis for appropriate rehabilitation. They also called for a policy change to allow unit holders to change activities without undergoing cumbersome processes.

(E) EXPANSION SCHEME: The KCCI discussed allowing new units to change viable activities in vacant spaces and not restricting them to complementary activities only.

(F) Existing units that have not availed incentives should be allowed to do so when changing activities.

(G) Green Energy Option: The KCCI proposed incentives for the installation of solar energy systems similar to DG sets.

(H) The KCCI suggested increasing CII Incentives under NESS Scheme and simplifying the process for availing CIS in comparison to MIDH.

(I) PMEGP units seeking incentives should receive direct formal registration and be eligible for CIS and GSTLI components under NCSS.

(J) Reservation For Start-ups: The KCCI recommended significant reservations for start-ups in industrial estates.

(K) Hotels should be permitted in existing estates if more than 30% of existing units desire to shift to the hospitality sector.

(L) DIC should have an operational office in every estate for easy accessibility.

The Commissioner of Industries & Commerce briefed the KCCI team on government initiatives to support industrial growth, including the Raising and Accelerating MSME Productivity (RAMP) program—a World Bank-supported initiative aimed at enhancing productivity and competitiveness of MSMEs. He assured that the government was actively considering providing marketing assistance to industrial units to expand their market reach and revenue streams. Additionally, he emphasized the importance of partnerships with NBFCs to diversify financial support available to industrial units. The ongoing dialogue between industrial stakeholders and the government aims to ensure effective implementation of government schemes, contributing to the economic development of Jammu and Kashmir. The KCCI President commended the Commissioner for his efforts to benefit the industry and handicrafts sector.