Srinagar: The Federation of Chambers of Industries Kashmir (FCIK), the Valley’s apex industrial chamber, on Tuesday presented a substantive pre-budget memorandum to the Chief Minister Omar Abdullah, flagging deep regional and sub-regional imbalances in industrial infrastructure and seeking urgent interventions to revive MSMEs, entrepreneurship, and employment in Jammu & Kashmir.
During the interaction, FCIK stressed that the ongoing review of the Industrial Policy must address ground-level distortions that have led to the stress and idleness in existing enterprises, besides persistent inequalities, to promote industrial activity in limited pockets. The chamber flagged 12 critical policy intervention areas, considered crucial for rejuvenation, up-scaling and industrial activity.
FCIK placed detailed data before the Chief Minister showing that the Kashmir region has only about 21,900 kanals of industrial land in existing and upcoming estates compared to nearly 29,700 kanals in the Jammu region, resulting in a shortfall of over 7,800 kanals. Within Kashmir, industrial infrastructure is overwhelmingly concentrated in South and Central Kashmir, while North Kashmir—despite its geographical spread and population—has just 498 kanals of developed industrial land, with 1,828 kanals under development, severely constraining investment and employment generation. In the Jammu region, industrial growth remains largely plains-centric, with the Chenab Valley having less than 100 kanals and no upcoming industrial estates, and the Pir Panjal districts together accounting for barely 647 kanals. FCIK said this skewed spatial distribution reflects gross regional and sub-regional inequalities and a persistent policy bias, and called for a decisive shift towards large, contiguous industrial estates in North Kashmir and hilly regions, complemented by activity-based industrial clusters to ensure balanced and inclusive industrial growth.
The delegation also urged a fundamental overhaul of the public procurement policy, emphasizing that local MSMEs are willing to compete on price with outside suppliers, provided their inherent cost disadvantages are offset through supportive measures. FCIK stressed that industry is no longer seeking symbolic, on-paper price preference, but real market access via GST reimbursement on value addition, interest subvention, and exemptions from regulatory charges. To implement this effectively, the chamber proposed a three-pronged framework which include revival of SICOP for aggregation and distribution of reserved items; MSME-friendly e-tendering with structured purchase preference; and, enhancing local filters on the GeM portal to ensure real market access, value addition, and employment opportunities for local enterprises.
FCIK proposed a three-track solution to revive sick MSMEs which includes revival under GO 47-IND/RBI framework with loan restructuring and government support; a dedicated MSME Asset Reconstruction Company for chronic NPAs; and a government-led initiative for one-time settlement to provide stressed units a clean exit from legacy debts.
Welcoming the Holistic Agriculture Development Programme (HADP), FCIK urged its implementation in mission mode with adequate budgetary backing, describing the 29-project programme as a potential game changer for Agripreneurship and rural industrialization in coming times.
FCIK also pressed for immediate relief measures to arrest MSME distress, including a one-time Power Amnesty with waiver of surcharge, interest, and penalties, and a statutory clean slate for pending VAT arrears from the pre-GST regime, citing policy assurances given at the time of GST transition.
FCIK also made several suggestions for enhancing revenue generation by the government, proposing a multi-pronged approach that includes non-intrusive levies such as road tolls, green cess, and progressive vehicle taxes; rationalization of water usage charges on hydropower; monetization of natural resources through responsible mining; PPP-led infrastructure development including industrial estates, tourism, healthcare, and education; aggressive convergence with central schemes for MSMEs and infrastructure; and strict accountability in fund utilization.
