FCIK, FOIJ for rejuvenating existing industry to reduce unemployment

Srinagar: The apex industrial Chambers, Federation of Chambers of Industries Kashmir (FCIK) and Federation of Industries Jammu (FOIJ) have demanded for rejuvenation of existing industrial enterprises for substantial reduction in the growing unemployment in Jammu and Kashmir. The existing industry was currently in deep distress but possessed the potential to provide employment to 500 thousand employees on rejuvenation.
According to a statement issued by FCIK, this was stated by members of the two organisations in their joint meeting with the Commissioner-Secretary Industries and Commerce department Vikramjit Singh. The heads and members of the two organisations who participated in the meeting included Shahid Kamili, Tejwant Singh Reen, Shakeel Qalander, Lalit Mahajan, Mohammad Ashraf Mir, Meraj Ahmad Qureshi and Zahoor Ahmad Bhat. This was the first meeting after the two organisations had signed MOU for mutual cooperation and coordination.
While hailing the vision behind formulation and approval of Industrial Development Scheme of 28400 Crores for Jammu and Kashmir with mainobjective to create jobs and develop skill, the delegation observed that theprocess of generating new employment opportunities was likely to take time till the industrialization proposals under the new scheme were implemented on ground.
However, the government required to put simultaneous emphasis on job creation through already existing enterprises having tremendous potential to generate employment in the short run, stated the delegation.
“The infrastructure valuing thousands of crores in the shape of buildings and Plant and Machinery existed on ground both in the organised and unorganised sector across Jammu and Kashmir which currently was being meagerly utilized owing to slew of problems faced by existing enterprises,” the delegation said, adding that all the existing infrastructure could be put to its optimum utility if measures to assess and address these problems were taken by concerned authorities in the government.
While assuring the Commissioner-Secretary of absorbing up to 500 thousand employees in the rejuvenated existing industrial units of the Union Territory within a shortest period of time, the delegation solicited his support and recommendation for protection, expansion, diversification, modernization, revival and rehabilitation suited to individual units for operationalizing the existing industrial sector to its optimum capacity and potential.
The delegation discussed shaken viability of existing industry in the aftermath of withdrawal of VAT exemption, abolishing of toll and entry tax, withdrawal of price and purchase preference coupled with post COVID market volatility which had forced the enterprises to make retrenchments over past few years.
While explaining the plight of local units which had been hit hard by the changed procurement policy by the government, the delegation demanded a suitable mechanism for protecting and incentivizing local industrial units in competition with their counterparts on Government e-Marketplace (GeM).
“How can an enterprise of J&K compete with its counterparts from industrially advanced states when the later enjoyed a bunch of advantages like zero inventory maintaining, cheap labour, multiple working shifts, smooth communication, huge market etc. over them” observed the members.
The delegation also demanded for arrangement of funds for disbursement of committed 3% “turnover incentive” under the policy and as per the claims submitted. Any curtailment of funds on this account would not auger well with the industrial community and was likely to shake the confidence of entrepreneurs further on Government policies and commitments, the delegation conveyed.
The delegation also sought clarification on disbursement of SGST refund by Commercial Taxes in respect of units having undertaken substantial expansion and additional line of activity.
The Commissioner-Secretary while giving positive response to all the points put forth in the meeting for discussion asked the delegation for submission of a comprehensive paper substantiating their suggestions and demands for rejuvenation of existing industrial sector. He said such a paper could be examined and deliberated further at his level before making recommendations to the concerned authorities. He assured that government was keen to nurture the existing industry along with new industry for overall economic development and employment generation in the region.

Leave a Reply

Your email address will not be published.