Calls for policy revisions to ensure equitable access to dev contracts, promote economic growth
SRINAGAR: The Federation of Chambers of Industries of Kashmir (FCIK) has expressed renewed optimism that the newly formed government in Jammu and Kashmir will take decisive steps to foster a more inclusive and equitable economic environment for the region. The Federation is particularly hopeful that the government will address longstanding concerns over the awarding of development contracts predominantly to non-local entities, a practice that has marginalized local businesses and hindered economic growth within the region.
In a series of high-level meetings with key government officials, FCIK’s leadership raised these issues directly with Chief Minister Omar Abdullah, Deputy Chief Minister Surinder Kumar Choudhary, Advisor Nasir Aslam Sogami and Chief Secretary Atal Dulloo, the Chamber said in a statement issue here. The discussions focused on the challenges faced by local businesses, particularly in securing large government contracts. FCIK officials received firm assurances that the government is committed to reviewing and revising policies that have, according to them, sidelined local enterprises for far too long.
Shahid Kamili, President of FCIK, highlighted that large-scale infrastructure projects in Jammu and Kashmir have predominantly been awarded to non-local contractors, largely due to stringent qualification requirements and inflated project volumes. These criteria, Kamili argued, have disproportionately disadvantaged local businesses, many of which possess the capability and expertise to manage such projects.
“Over the years, exclusionary policies have stifled the potential of our local businesses and harmed the region’s economic fabric. Increasing project volumes and raising qualification thresholds have pushed local enterprises out of the competitive process, resulting in lost opportunities for our youth and undermining our local economy,” Kamili said.
The Federation has long advocated for policies that would allow local micro, small, and medium enterprises (MSMEs) to compete fairly for government contracts. Kamili expressed confidence that the new administration offers a significant opportunity for change. With a policy shift, he believes local businesses could thrive, creating jobs and promoting long-term economic self-sufficiency in the region.
“We are hopeful that this government will prioritize policies that enable local enterprises to thrive, which will not only contribute to the region’s economic growth but also support the livelihoods of local workers,” Kamili added.
In addition to their broader concerns, FCIK has raised specific issues regarding the Revamped Distribution Sector Scheme (RDSS), a key initiative launched by the Government of India to revamp the power sector. Under the RDSS, 13 project packages for the installation of 7,000 distribution transformers and 1.5 lakh steel tubular poles in the Kashmir Valley have been awarded or are in the process of being awarded to non-local contractors by the Kashmir Power Distribution Corporation Limited (KPDCL).
FCIK has formally addressed this issue with top government officials, urging that certain components of the RDSS, particularly those related to the supply of distribution transformers and steel poles, be reserved for local manufacturers in Kashmir. A similar provision for Jammu’s manufacturers has also been requested under the Jammu portion of the scheme.
“We believe it is imperative to ensure that local businesses have a fair chance to participate in these important development projects. Our call is for a policy revision that will keep the economic benefits within the region, empower the local workforce, and promote sustainable growth,” Kamili said.
The Federation’s call for a policy overhaul is focused on creating a more equitable business environment that provides local enterprises with the opportunity to contribute to the region’s growth. FCIK believes that, if implemented, such changes could significantly enhance the region’s economic development by fostering local entrepreneurship, creating jobs, and strengthening the economic foundation of Jammu and Kashmir.
As the Federation awaits a formal response from the government, it remains hopeful that the new leadership will act swiftly to bring about the necessary policy changes. FCIK is confident that, with the right support, local businesses can play a critical role in the region’s growth, helping build a more self-sustaining and prosperous Jammu and Kashmir.