Chamber presents comprehensive two-part economic revival plan
SRINAGAR: A delegation of the Kashmir Chamber of Commerce and Industry (KCCI), led by President Javid Ahmad Tenga, met with Chief Minister Omar Abdullah at the Civil Secretariat here on Monday to deliberate on the urgent economic challenges facing Kashmir following the tragic Pahalgam attack on April 22.
The KCCI team included Senior Vice President Ashiq Hussain Shangloo, Junior Vice President Fayaz Ahmad Punjabi, Secretary General Faiz Ahmad Bakshi, Treasurer Zubair Mahajan, along with past presidents and executive committee members. On the government side, the meeting was attended by Chief Secretary Atal Dulloo, Additional Chief Secretary Dheeraj Gupta, Principal Secretary Agriculture & Finance Shailendra Kumar, Commissioner Secretary Industries and Commerce Vikramjit Singh, Commissioner Secretary Youth Services and Sports Sarmad Hafeez, Director Tourism Kashmir Raja Yaqoub, and other senior officials.
During the discussions, the KCCI presented a comprehensive two-part economic revival plan aimed at addressing the severe setbacks caused by the attack and subsequent developments. The first part outlined urgent measures to stabilize the economy, while the second offered sector-specific recommendations for long-term revival and sustainability, the KCCI said in a statement issued here,.
Chief Minister Omar Abdullah listened attentively and acknowledged the gravity of the situation. He remarked, “The tragic events of April 22 have deeply impacted Kashmir’s economic fabric. The government will take all necessary steps to address these challenges, including formulating a dedicated economic relief package tailored to the consequences of this incident. This package will be submitted to the Central Government for approval.”
He further emphasized that the Pahalgam attack had disrupted daily economic activities, particularly affecting daily wagers, transporters involved in tourism, and small tourism operators. The government remains committed to supporting tourism revival and mitigating the crisis faced by businesses and families dependent on this sector. “We will soon initiate tourism promotion activities, with the Chief Minister himself participating and reviewing restrictions on tourist destinations,” he assured.
The KCCI delegation’s memorandum focused on immediate economic stabilization measures and sector-specific strategies, including:
Urgent Economic Stabilization Measures:
– Interest Subvention Scheme: 5% interest subvention on all business loans to ease financial strain.
– One-Time Loan Moratorium: Temporary deferment of loan repayments and protection from NPA classification.
– Collateral-Free Working Capital Credit Line: A regional Guaranteed Emergency Credit Line offering up to 20% working capital with a one-year moratorium.
– Tax Relief: Suspension of municipal and property taxes in affected areas (e.g., Badami Bagh Cantonment) and waiver of transport taxes on passenger and commercial vehicles.
– Soft Loans for Non-Loanee Enterprises: Low-interest, collateral-free loans to support liquidity.
Sector-Specific Recommendations:
– Tourism: Reopening of destinations, promotion of eco-tourism and adventure activities, easing licensing procedures, incentivizing government employee travel, and resolving hotel lease issues.
– Horticulture & Agriculture: Expansion of high-density apple plantations, cultivation of cherries, walnuts, almonds, peaches, strawberries; establishing quality control centers; implementing crop insurance schemes.
– Handicrafts & Exports: Reducing GST to 5%, resuming national and international handicrafts expos, providing air freight subsidies.
– Youth & Community Development: Initiatives to combat youth drug addiction, develop sports facilities, and promote community engagement through fairs and centers.
– Natural Resources & Environment: Allocating funds for the maintenance and revival of water bodies and wetlands.
– Power & Industry: Power amnesty schemes for consumers, reintroducing schemes like NCSS for industrial growth, establishing modern industrial estates, and seeking OTS schemes for NPAs.
– Trade & Logistics: Addressing warehousing deficits.
– Youth-Led Initiatives: Creating recreational spaces and addressing youth issues like addiction.
– Private Education: Resolving issues related to NOCs, land leases, and affiliations.
Chief Minister Omar Abdullah assured the delegation of the government’s full support to implement practical measures for economic recovery and proposed working closely with KCCI to refine and present the revival plan to the Central Government.
The KCCI team expressed gratitude for the support and reaffirmed their commitment to working collaboratively with the government to restore Kashmir’s economic vitality. They remain optimistic that continued constructive engagement will help overcome the current crisis and pave the way for sustainable growth.