Urges probe into regional disparities
Srinagar: The Federation of Chambers of Industries Kashmir (FCIK), the Valley’s apex industrial chamber, on Sunday said it will shortly submit a white paper to Prime Minister Narendra Modi on the implementation of the New Central Sector Scheme (NCSS). The Chamber said that while the scheme was conceived to promote balanced block-level industrial growth across Jammu and Kashmir, its implementation has resulted in lopsided growth that largely reinforces pre-existing industrial geography.
Copies of the white paper will also be submitted to Union Home Minister Amit Shah, Lieutenant Governor Manoj Sinha, and Chief Minister Omar Abdullah, FCIK said in a statement issued here. The decision was taken at a meeting of FCIK’s Advisory Committee, chaired by Shahid Kamili and attended by presidents of industrial estate associations, district representatives, and sectoral bodies from across the Kashmir Valley.
The Chamber stated that the Government of India approved an incentive package of ₹28,400 crore with a clear objective: to attract investment in a balanced manner, extend industrialisation to underserved districts, and create employment opportunities at the block level. While acknowledging that the scheme has generated substantial investor interest, FCIK stressed that the issue is not the quantum of investment proposals but the manner of implementation and distribution of benefits.
According to the live dashboard of the Department for Promotion of Industry and Internal Trade (DPIIT), of 2,346 applications received up to September 30, 2024, only 918 registrations were granted while 1,204 applications remain pending. On claims, 6,203 claims were received and 3,338 approved, but only 1,886 have been disbursed—indicating that the scheme’s translation into timely industrial activity on the ground remains limited.
The district-wise pattern reveals that visible momentum remains concentrated in already established industrial corridors of Kathua, Samba, and Jammu in the Jammu division, and Pulwama, Srinagar, and Budgam in the Kashmir division. In contrast, districts including Doda, Kishtwar, Ramban, Rajouri, Poonch, Udhampur, Reasi, Kupwara, Baramulla, Bandipora, Ganderbal, Kulgam, Anantnag, and Shopian remain marginal or nearly invisible in the implementation trail.
The regional imbalance is stark: Jammu accounts for nearly 65 percent of registrations and 62 percent of claims, while Kashmir accounts for only 35 percent of registrations and 38 percent of claims. Kashmir has also faced a disproportionately high rejection rate of 15.4 percent, compared to 6 percent in Jammu—a disparity the Chamber termed “too significant to be dismissed as incidental.”
The Chamber expressed serious concern over the concentration of incentives, noting that 18 units alone account for incentive approvals of about ₹20,098.40 crore, with most concentrated in one region. The Advisory Committee questioned why such large investments were not strategically distributed across different districts to ensure wider employment generation.
The members further sought full public disclosure of the ₹2,513 crore already disbursed, including beneficiary identities, quantum received by each unit, and how much incentive support has gone to existing enterprises versus new entrants.
FCIK has urged the Government of Jammu and Kashmir to constitute an independent high-level committee to examine whether the implementation of NCSS has adhered to the original objective of balanced block-level development as envisaged by the Government of India.
The Advisory Committee observed that the Department’s emphasis on rising Udyam Registration numbers and improved BRAP rankings does not address core concerns. “A surge in Udyam registrations reflects formalisation, not necessarily functional viability, while a high BRAP ranking may indicate compliance with reform checklists but cannot by itself negate the operational stress and institutional bottlenecks faced by enterprises on the ground,” the Chamber stated.