Srinagar: The Federation of Chambers of Industries Kashmir (FCIK), the Valley’s apex industrial body, has decided to submit a detailed white paper to Prime Minister Narendra Modi on the implementation of the New Central Sector Scheme (NCSS) in Jammu & Kashmir, highlighting what it termed as “lopsided and uneven industrial growth.”
Copies of the white paper will also be submitted to Union Home Minister Amit Shah, Lieutenant Governor Manoj Sinha, and Chief Minister Omar Abdullah.
The decision was taken at a meeting of FCIK’s Advisory Committee chaired by Shahid Kamili, which was attended by presidents of industrial estate associations, district representatives, and sectoral bodies from across the Kashmir Valley.
FCIK stated that while the Government of India conceived NCSS to promote balanced, block-level industrial development across Jammu & Kashmir, its implementation by the Industries and Commerce Department and the Department for Promotion of Industry and Internal Trade (DPIIT) has largely reinforced pre-existing industrial geography.
The Chamber noted that the ₹28,400 crore incentive package was designed to attract investment in underserved districts and generate employment at the grassroots level. The scheme offers capital incentives, interest support, and fiscal assistance aimed at transforming the region’s industrial landscape.
While acknowledging that the scheme has generated significant investor interest, FCIK stressed that the issue lies not in the volume of proposals but in their distribution and execution.
Citing official dashboard figures, FCIK said that out of 2,346 applications received till September 30, 2024, only 918 registrations were granted, while 1,204 remain pending.
On the claims side, 6,203 claims were filed, 3,338 approved, but only 1,886 disbursed, indicating a gap between approvals and actual on-ground industrial activity.
The Chamber flagged a clear concentration of industrial momentum in already developed districts—Kathua, Samba, and Jammu in the Jammu division, and Pulwama, Srinagar, and Budgam in Kashmir.
In contrast, districts such as Doda, Kishtwar, Ramban, Rajouri, Poonch, Udhampur, Reasi, Kupwara, Baramulla, Bandipora, Ganderbal, Kulgam, Anantnag, and Shopian remain largely marginal in the scheme’s implementation.
Regionally, Jammu accounts for nearly 65% of registrations and 62% of claims, compared to Kashmir’s 35% registrations and 38% claims. The rejection rate in Kashmir stands significantly higher at 15.4%, against 6% in Jammu.
FCIK also raised concerns over the concentration of benefits, noting that just 18 units account for incentive approvals worth approximately ₹20,098.40 crore, most of them located in a single region.
The Advisory Committee questioned why such large investments were not distributed more equitably to ensure wider employment generation and balanced industrial growth.
The Chamber has sought full public disclosure of the ₹2,513 crore already disbursed, including details of beneficiaries, the amount received by each unit, and the share of incentives going to existing versus new enterprises.
It has also urged the J&K Government to constitute an independent high-level committee to assess whether the implementation of NCSS aligns with its original objective of balanced development.
FCIK endorsed recent media reports highlighting industrial distress and policy gaps, stating they reflect ground realities.
The Chamber noted that the government’s emphasis on rising Udyam registrations and improved Business Reform Action Plan (BRAP) rankings does not adequately address core concerns.
“A rise in Udyam registrations indicates formalisation, not necessarily functional viability, while a high BRAP ranking reflects compliance with reform checklists but does not negate operational stress and institutional bottlenecks faced by industries,” the Chamber observed.
