SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) on Friday outlined six key contours which, it said, should guide the forthcoming Industrial Policy for Jammu and Kashmir and shape the institutional mechanism for effective implementation of Ease of Doing Business reforms.
The proposals were presented by an FCIK delegation led by Shahid Kamili during a meeting with the government-constituted high-level Drafting Committee headed by Financial Commissioner (Additional Chief Secretary) Finance Shailender Kumar. Administrative Secretary Industries & Commerce Vikramjeet Singh and Managing Director and CEO of J&K Bank Amitava Chatterjee were also members of the committee.
At the outset, FCIK stressed that the revised industrial policy should focus on consolidation of the existing industrial base alongside promotion of new investment. The federation said the fastest and most employment-intensive path to industrial growth in Jammu and Kashmir lies in preserving and strengthening industrial capacity built over decades of private investment.
It urged the government to prioritize revival, rehabilitation, modernization, capacity utilization and consolidation of existing industrial units, while ensuring that fresh investment strengthens rather than bypasses the existing industrial base.
As the second major contour, FCIK highlighted the structural disadvantages faced by local industry, including logistical challenges, high energy costs, limited scale, financing constraints and restricted market access. To offset these disadvantages, it called for a stronger public procurement framework to ensure fair market access for local MSMEs through purchase preference, suitable tender conditions, segregation of supply contracts from works contracts, stronger local filters on the GeM portal, revival of procurement and marketing support through SICOP and timely payments.
The federation’s third contour focused on creating a more facilitative regulatory ecosystem. FCIK called for simplified compliances, rationalized fees, time-bound approvals, deemed clearances, transparent digital implementation and timely payments. It also sought region-sensitive credit delivery and relaxation, in deserving MSME cases, of norms relating to CIBIL scores, external credit ratings and rigid asset classification.
Under the fourth contour, FCIK emphasized balanced and infrastructure-led industrial growth, particularly in underserved regions. It sought focused support for sectors with strong local value-addition and employment potential, especially wood-based, mineral-based, agriculture-based and horticulture-based industries, besides upgradation of existing industrial estates and creation of new infrastructure.
As its fifth recommendation, the federation urged the government to move away from fragmented and registration-linked incentives and instead adopt a more uniform incentive structure for existing, revived, expanding and new units. It proposed linking incentives to actual investment, commencement of production, employment generation, labour welfare, green technologies and measurable value addition.
FCIK pointed out that more than 1,000 units registered under the New Central Sector Scheme (NCSS) before the September 2024 cut-off are still awaiting approval due to limited funds, while units already covered under the scheme continue to receive substantial fiscal benefits. It said this had created a policy imbalance and called for a comparable incentive framework in the revised industrial policy to maintain competitive parity.
The sixth contour focused on monitoring and implementation. FCIK said the success of any industrial policy depends not only on formulation but also on effective execution. It proposed measurable targets for investment, MSME support, employment and sectoral growth, revival of the Industrial Advisory Council under the Chief Minister, establishment of a dedicated grievance redressal mechanism and issuance of clear operational guidelines to ensure accountability and transparency.
During the meeting, FCIK also submitted a fresh copy of its earlier comprehensive policy paper prepared after consultations with constituent industrial associations across Kashmir. The federation said the document reflects grassroots perspectives and aims to address structural realities instead of offering fragmented short-term measures.
FCIK also stressed the need for institutional strengthening of the Industries and Commerce Department through improved coordination, staff augmentation, digitisation of service delivery and preservation of the distinct roles of SIDCO and SICOP in infrastructure development, procurement and marketing support.
According to the federation, the chairman and members of the Drafting Committee gave a patient hearing to the delegation, responded to several concerns and assured that the submissions would receive due consideration during the policy formulation process.
The meeting was also attended by Secretary Industries and Commerce Khalid Jehangir, Director Handicrafts and Handlooms Musarat-ul-Islam, Managing Director Trade Promotion Organisation Sudharshan Kumar, Director Industries and Commerce Khalid Majid, MD SIDCO/SICOP Shahid Saleem, Joint Directors Industries and Commerce Zahoor Magrey and Rayees Ahmad, General Managers of various districts and other stakeholders.
