Srinagar, May 22: Federation of Chambers of Industries Kashmir has urged the Parliamentary Standing Committee on Industry to recommend a comprehensive and adequately funded industrial policy framework for Jammu and Kashmir to ensure parity in incentives for all categories of industrial units.
The demand was raised during a high-level meeting of the Parliamentary Standing Committee on Industry held in Srinagar under the chairmanship of Tiruchi Siva.
The meeting was attended by members of Parliament, Chief Secretary Atal Dulloo, Additional Development Commissioner MSME Praveen Kumar, MD and CEO of Jammu and Kashmir Bank Amitava Chatterjee, Commissioner Secretary Industries and Commerce Vikramjit Singh and representatives of various financial institutions and banks.
An FCIK delegation led by Shahid Kamili submitted a detailed memorandum highlighting structural, financial and policy challenges confronting industries and MSMEs in Jammu and Kashmir.
FCIK expressed concern over what it termed an imbalance created after closure of registrations under the New Central Sector Scheme (NCSS-2021), under which registered units would continue receiving incentives up to 2037, while existing units, revival cases and future investors outside the scheme were allegedly left at a disadvantage.
The federation urged the committee to recommend adequate central funding for the upcoming UT Industrial Policy so that incentives could be extended to existing, revived, expanding and prospective units on comparable lines.
FCIK stated that sustainable industrialisation cannot be achieved by creating “two unequal classes of enterprises” operating under the same geographical and economic constraints.
The federation also stressed the need for a comprehensive revival and rehabilitation package for sick and stressed industrial units and proposed creation of a dedicated revival corpus for modernization and expansion of MSMEs across Jammu and Kashmir.
Issues related to market access and delayed payments to MSMEs were also highlighted during the meeting. FCIK sought restoration of institutional procurement support and stricter enforcement of the MSMED Act to ensure timely payments.
The federation additionally called for a region-sensitive lending framework and collateral-free financing for entrepreneurs under CGTMSE and other government schemes, alleging that banks continue to insist on heavy collateral despite government-backed guarantee cover.
Members of the Parliamentary Standing Committee acknowledged the challenges faced by MSMEs in Jammu and Kashmir and assured support for addressing the issues projected by the federation.
The committee also noted that the contribution of industry to Jammu and Kashmir’s Gross State Domestic Product remains around 19 percent compared to nearly 30 percent contribution of industry to the national GDP, observing that the disparity warranted focused policy intervention.
During the meeting, Chief Secretary Atal Dulloo made a presentation on measures being undertaken for industrial growth and informed the committee that the new industrial policy for Jammu and Kashmir is expected to be finalised within the next two to three months after consultations with stakeholders.
MD and CEO J&K Bank Amitava Chatterjee, assisted by senior bank officials, also made a presentation on credit flow and assured continued support to the industrial sector in Jammu and Kashmir.
