SRINAGAR: With high expectations for Prime Minister Modi’s visit to Kashmir, the Federation of Chambers of Industries Kashmir (FCIK) has earnestly requested his attention towards the struggling industrial sector in Jammu and Kashmir, pleading for rejuvenation through a triple-therapy approach followed by additional measures. The triple-therapy proposed includes earmarking 25% of funds from the Central Industrial Scheme for existing industries, substantial procurement of identified industrial goods from local industries under the Public Procurement Policy, and the establishment of a structured mechanism for hassle-free credit flow and banking services to MSMEs.
While lauding Prime Minister Modi’s vision for industrial development in Jammu and Kashmir and his approval of an incentive scheme of 28400 Crores in 2021, the apex chamber noted that actual expenditure under the scheme would occur only after the establishment of new enterprises on the ground, which may take some time due to infrastructural constraints, despite the UT government’s diligent efforts in this regard.
FCIK has requested the Hon’ble Prime Minister’s approval to allocate 25% of CIDS-2021 funds for approximately 40000 existing industrial units towards their revival, rehabilitation, diversification, expansion, scaling up, modernization, and up-gradation. This allocated sum could be utilized for incentives provided under the CIS as well as for funding incentives provided under UT government schemes and policies, including the revival of sick units, turnover incentives, GST reimbursement, etc.
The FCIK is confident that upon rejuvenation, the existing units have the potential to bounce back with renewed vigor and contribute significantly to the economic development and employment generation of J&K, aligning with the vision and efforts of the Hon’ble Prime Minister. “The new initiative would pave the way for optimum capacity utilization of the existing units, which are currently not surpassing even the break-even point,” stated FCIK.
Addressing the issue of marketing, FCIK has urged the Hon’ble Prime Minister to reserve a substantial portion of industrial goods procured by UT/Central government departments/PSUs for local manufacturers and processors. FCIK highlighted that most local manufacturers and processors have become inactive after UT government directives mandated purchases through the GeM portal, where local units struggle to compete with counterparts from industrially advanced states. FCIK also advocates for incentives for units meeting demand outside the region.
FCIK has drawn the Prime Minister’s attention to the sluggish credit flow and banks’ reluctance to fund industrial units under approved schemes, including the Credit Guarantee Trust Scheme for Micro, Small, and Medium Enterprises (CGTMSE). They have demanded a foolproof structured mechanism to ensure and monitor smooth credit flow to MSMEs in Jammu and Kashmir under all available schemes.
Additionally, FCIK seeks the Prime Minister’s intervention to resolve NPAs, directing a uniform and non-discriminatory out-of-box OTS scheme for enterprises in Jammu and Kashmir.
FCIK appeals to PM Modi to rejuvenate ‘ailing’ industry in J&K with ‘triple-therapy’
