SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has urged the Jammu and Kashmir government to roll out the proposed new Industrial Policy at the earliest and complement it with a revival package for stressed industrial units, including power amnesty, relief on government dues and resolution of legacy bank debt.
In a statement, the industry body welcomed the government’s efforts to frame and finalise a new industrial policy, saying the initiative was timely as a large section of the micro, small and medium enterprises (MSME) sector continues to face financial stress due to years of disruptions, natural disasters and prolonged shutdowns.
FCIK said the success of the new policy would depend not only on attracting fresh investment but also on addressing the concerns of existing industries and facilitating the revival of stressed enterprises.
The Federation appreciated the ongoing consultations on the policy and expressed hope that it would be finalised and implemented without delay.
It, however, said certain relief measures could be announced even before the formal notification of the policy. Among these, FCIK sought a power amnesty for stressed industrial units, including waiver of accumulated interest, surcharges and penal charges on electricity dues, while allowing recovery of actual consumption charges through reasonable instalments.
The Federation also called for relief from accumulated demand charges, particularly for units that remained closed or operated at reduced capacity due to circumstances beyond their control.
FCIK further urged the government to consider similar amnesties on interest, penalties and late-payment charges owed to government departments, industrial development corporations and other government-controlled agencies. It argued that recovery of penal charges from units proposed for revival could undermine rehabilitation efforts.
The industry body said revival of the sector would remain incomplete without addressing legacy bank debt. It reiterated its demand for a special One-Time Settlement (OTS) scheme by Jammu and Kashmir Bank, modelled on the State Bank of India’s OTS-20 framework.
According to FCIK, such a scheme would provide stressed borrowers with an opportunity to settle long-pending liabilities, restore banking relationships and regain access to working capital.
The Federation urged J&K Bank to align any special OTS scheme with the government’s industrial revival initiative, saying the two measures should operate in tandem to facilitate meaningful recovery of distressed enterprises.
FCIK said the government had an opportunity to adopt a coordinated approach that combines a new industrial policy, power and government-dues amnesties, resolution of legacy bank debt, fresh financing for viable units and improvements in the ease of doing business environment.
The Federation said such measures could help safeguard existing enterprises and jobs while strengthening investor confidence in Jammu and Kashmir’s industrial sector.
