FCIK says government policies victimising Industrial sector

Srinagar: Federation Chamber of Industries (FCIK) has taken strong note of the government policies which has pushed the Industrial sector to the wall.
According to satemsnt issued here it said that The policies, orders & guidelines issued from last one year has proved fatal to the industrial sector and has hampered the growth of industry rather they are pushing it to closure. The commitments made in Industrial policy of 2016-26 has been withdrawn during the currency of the policy and new policy 2021-30 has been issued which is flawed, ambiguius and has created hurdles to the industry.
The Federation Chamber of Industries Kashmir (FCIK) has urged upon the government to look inwards for saving the reminiscent of local industry from extinction before wooing the investors from outside to venture into the sector.
FCIK is of opinion that these policies, orders & guidelines should be redrafted & reviewed so the existing industry can be saved before it will vanish. FCIK has demanded that the measures should be taken immediately to save the industry. Some of the burning issues which needs immediate redressal/
Regarding the marketing policy, FCIK has demanded that the Marketing Commitments made in the previous Industrial policy 2016-26 has been withdrawn during its currency of operation. Federation Chamber of Industries Kashmir (FCIK) has strongly resented that the Finance department has directed all Administrative Secretaries to send procurement of good & services with Governmnent e-Marketplace (GeM) with the reference to the DO No. 200/CEO-GeM/2020 Dated: 23.10.2020 issued from Ministry of Commerce & Industries, GeM. The Local Industrial units are not registered with the GeM Portal yet and will be left out from the Govt procurement. FCIK has demanded that the GeM Portal needs to be amended as per demands of the Industrial Sector either the Local purchase policy must be introduced.
The Industrial sector has been provided with the Industrial Policy 2016-26 which is pillar for the Industrial Sector and the same policy is protecting the Industrial Sector with Price preference of 20% against their supplies made to government departments. But the government is not endorsing the same and are floating the tenders. The procurement agency of government i.e. SICOP is also kept apart from procurement of goods to be supplied to the departments.
The previous order with regard to the distribution that the Lowest tenderer i.e. L1 will be given the 1/3rd share to the tune of its capacity and rest to be divided among the other tender participants. Now, the government has floated the tenders and the supply orders has been allotted to outside J&K without accommodating other unit holders.
The industrial Sector has already faced a jolt after the implication of GST, Toll Tax withdrawal, Entry Tax etc. The previous Tax regime was providing protection to the Industry but the new laws has made the goods & commodities noncompetitive as the cost equalizing measures has been withdrawn.Further, the unit holder Faith & confidence has shacked as the govt is not supporting the sector.
FCIK has demanded that government should come up with revised Industrial policy particularly with regard to Procurement & Marketing as from last two years the contradictive orders have been issued by government. Marketing is a basic fundamental governing the industrial development and growth of the industries in the valley.
The important incentives which have been excluded from the current industrial policy of 2021 which was acting as stimulus are like Price preference, Purchase Preference, Cost of tender document, earnest money and security deposit, freight subsidy, Income Tax holiday, exemption of stamp duty and court fee & Tax remission as in previous VAT regime.
About the Industrial Land Allotment Policy, FCIK has strongly condemned against the land allotment policy and the multiple amendment made in past few months regarding the Land allotment.
FCIK in a statement said that the portal of www.jkinvest.in was launched and the investment guide lines were issued on 22.4.2021 for inviting the applications. Since then the portal was opened and approximately 2500 applications were uploaded, out of which appraisal of nearly 90% applications are already conducted. In the meantime High Level Committee meetings were also held and designated committee has also allotted some huge chunk of land to few Unit holders in Jammu and in Kashmir too. In addition, the Government comes up with the change in committees, i.e. abolishing all Divisional level committees and constitution of a single high level committee for allotment upto 200 kanals of land. Further, Frames guide lines in terms of score points for investment, these guidelines have been made applicable to all applications received on portal and already apprised by the designated District level committee headed by Joint Director Industries. We fail to understand as to why yard stick has been changed, when it comes to the local entrepreneurs. Government must be aware that after guidelines were leaked by some WhatsApp group approximately 800 applications have been uploaded on portal within a shortest period of only 10 days, which becomes very suspicious, but the general applicants were kept in dark and the applicants who have applied post issuance of guide lines by way of points were already in know of these guide lines. Approximately 2500 applications were received in seven months all over Kashmir Zone and 800 applications received within only 10 days. It is worth to mention here that guidelines for allocation of points in investment are different in Kashmir and with the special features for Jammu Division. Whereas Jammu investment points include working capital also, so as to give more points than Kashmir. Taking working capital as part of investment needs introspection as working capital has never been a part of investment globally.
FCIK in a statement said that entrepreneurs who have applied for land without any defined parameters are unnecessarily been put to valuation method of newly introduced investment points. Whereas major chunk of land has been allotted to few blue eyed entrepreneurs in J&K on the same previous system of first come first service basis alongwith appraisal basis surprisingly parameters now devised for rest of the applicants, which means the large industrial units are getting preference and small prospective unit holders are not given any weightage in land allotment as they could setup more numbers of industrial units by providing them small plot size of land. The department has called for second and third preferences of industrial estates from the applicants now after seven months by calling for preferences, the department is dropping out entrepreneurs in as estate, who had applied there. It seems that committee wants to pool estates and call for preference/choice of estates when it has not been envisaged by the industrial policy and was not made known to the applicants during submission of applications. FCIK queries that how the parameters are devised now, when 90% appraisal has been completed without the marking system in place now, then what’s the role of recommendations of Appraisal Committee.
Further, Prospective Unit holders recommended by the District Industries Centre to the SIDCO have paid 10% of land premium since 2016. These applicants are awaiting for land allotments and the guidelines to be adopted for such cases are pending.
The amendments in the Land allotment policy continues as the High Level Land Allotment Committee in its meeting held on 30.12.2021 reserved the maximum of 05 marks for the category of women entrepreneur/ Foreign Direct investment/ SC/ ST Ex-servicemen with different breakup of marks for each category. Further, the Government Order No 261-JK (IND) of 2021 dated 22.12.2021 IE Sempora was declared as Medicity and separate merit list for the applications/ projects appraised for the same. What will be the fate of unit holders who have applied in General category& as they were not knowing that it will be declared as Medicity.
FCIK demands that the government should madel and allotment to all those bonafide prospective unitholders, who have applied with their proper applications on the same parameters by way of which the Government has earlier allotted huge chunk of l and at J&K.
FCIK also demands revocation for cancellation and eviction process of the Industrial Land

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