Srinagar: The Federation of Chambers of Industries Kashmir (FCIK) has welcomed the government’s decision to constitute a three-member committee to draft a comprehensive Industrial Policy aimed at addressing the needs of the industrial sector and supporting both existing and new industrial units in Jammu and Kashmir.
The committee will be headed by Financial Commissioner (Additional Chief Secretary) Finance Shailender Kumar and will include Commissioner/Secretary Industries and Commerce Vikramjeet Singh and Managing Director and CEO of J&K Bank Amitava Chatterjee as members.
The decision was announced by Chief Secretary Atal Dulloo at the conclusion of a stakeholders’ conference held under his chairmanship in Jammu. The meeting was attended by senior administrative officials, the Managing Director of J&K Bank, Director General Fire and Emergency Services, Chairman of the Pollution Control Committee, and other departmental heads, along with presidents of various business chambers from across Jammu and Kashmir.
During the meeting, the Chief Secretary directed the committee to prioritise finalisation of key policies requiring urgent attention, including the Public Procurement Policy and the Revival and Rehabilitation Policy for sick industrial units.
The conference began with a presentation by Commissioner/Secretary Industries and Commerce outlining initiatives undertaken under the first phase of Ease of Doing Business reforms and proposed measures for the second phase. Proposed amendments to the Industrial Policy 2021–30 were also presented. Several administrative heads supplemented the presentation by highlighting steps taken by their respective departments to facilitate ease of doing business.
During the interaction, FCIK raised concerns about what it described as a lack of coordination between the Industries and Commerce Department and other regulatory departments, which it said continues to create operational difficulties for industrial units. The Federation said that even routine clarifications often take months, resulting in delays and uncertainty for businesses.
FCIK also urged the government to remove what it termed unnecessary conditionalities imposed on routine approvals, suggesting that most approvals should be granted on the basis of self-certification to genuinely promote ease of doing business.
The Federation emphasised the importance of strengthening District Industries Centres (DICs) and called for restoration of their powers as envisaged under the MSMED Act so they can function as effective single-point facilitators for industrial units.
It also stressed that the upcoming Industrial Policy should first ensure “ease of living” for industry before focusing on ease of doing business, noting that persistent regulatory and administrative bottlenecks have made it difficult for many units to survive.
FCIK informed the meeting that over the past five to six years, local industry had largely been excluded from public procurements despite the government undertaking capital purchases worth more than ₹1 lakh crore. It therefore called for the early implementation of the Public Procurement Policy, whose draft has been pending for more than a year.
The Federation reiterated its proposal for procurement of identified items through SICOP, purchase preference for local industry in government tenders, and strengthening the local filter on the GeM portal.
Raising concerns over the growing number of distressed industrial units, FCIK highlighted the need for effective implementation of revival and rehabilitation mechanisms. It said that despite provisions in the Industrial Policy, sick units have not received adequate support, while banks have continued to publicly name and shame MSME defaulters.
The Federation also suggested that financial incentives under the new Industrial Policy should focus on cost equalisers rather than complicated incentive structures. It proposed that government support be used first to neutralise regulatory fees and charges imposed by various departments, thereby reducing the cost burden on industry.
According to FCIK, the remaining support could be structured in the form of interest subvention, GST-linked reimbursements based on value addition, labour-linked EPF and ESI contributions, and incentives for green technologies such as solarisation.
The Federation further proposed that such incentives be delivered through automated mechanisms, with financial support released directly to banks or relevant departments to ensure transparency and minimise human interface.
FCIK also called for restructuring of viable industrial units and demanded the launch of a Special One-Time Settlement (OTS) scheme to provide an honourable exit from legacy debt for distressed enterprises. Until such a scheme is introduced, it urged the government to impose a moratorium on bank actions against industrial units under the SARFAESI Act.
