Post-370 Fiscal Policy Sparks Concern Over Potential Industrial Closures in J&K

FOIJ REQUEST FOR THE GRANT OF FISCAL INCENTIVES TO EXISTING WORKING INDUSTRIAL UNITS of J&K IN UNION BUDGET 2025-26

Jammu,22-01-2025: Sh. Lalit Mahjan Chairman Federation of Industries Jammu draw the kind attention of Sh. Narendra Modi, Hon’ble Prime Minister, towards the plight of  Existing working  Industrial Units who are suffering very badly due to Dilution of Fiscal Incentives after the Abrogation of Article 370 leaving them in Doldrums which may be resulting into clouser of thousands of Existing Industrial Units with the mass scale retrenchment of industrial workers in the future.

Sh. Lalit Mahajan draw the kind attention of Sh. Narendra Modi, Hon’ble Prime Minister, Sh. Amit Shah Hon’ble Union Home Minister, Smt. Nirmala Sitharaman Hon’ble Union Finance Minister, Sh. Manoj Sinha Hon’ble Lt. Governor, JKUT, Sh. Omar Abdullah Hon’ble Chief Minister JKUT and Sh. Surinder Kumar Choudhary Deputy Chief Minister JKUT that in post Article 370 Regime, the State/Central Fiscal Incentive has been reduced to Rs. Approx. 500 Crores from Rs. 1800 Crores per annum due to unrealistic projections has been given by  UT Administration towards the requirement of Fiscal Incentives by the Existing Working Industrial Units in the previous Budget Estimates since 5th August 2019 by ignoring the demand of Existing Working Units in Jammu & Kashmir established in J&K State since long and working in spite of all the Odds like Limited Market Avenues as we are surrounded by the hostile Neighbors like China and Pakistan, Locational Disadvantages resulting higher cost of Raw materials and the Stiff competition from the Units Located in the Neighboring States and providing Direct/Indirect Employment to around four Lac peoples of the State which is equivalent to State Govt. Employees in spite of all the Odds as without the Fiscal Incentives it is not possible for the Industrial Units to survive.

It is pertinent to mention here that  Central Package of Incentives 2021 of Govt. of India has been notified  as per NCSS-2021 Industrial Development Scheme with the grant of Rs. 28400 Crores Fiscal Incentive with the provision of Rs. 21441 as Gross GST Reimbursement to New Industrial Units set up after 01-04-2021 whereas no provision has been made for the Reimbursement of Gross GST to Existing working Units in-spite of the facts that all the previous packages of Govt. of India since 2002 all the Fiscal Incentives has been given at par to Existing Working Units who opt for Substantial Expension resulting great resentment amongst the Existing working Units mostly owned by Sons of the Soil.

We request the Sh. Narendra Modi, Hon’ble Prime Minister, Sh. Amit Shah, Hon’ble Union Home Minister, Smt. Nirmala Sitharaman Hon’ble Union Finance Minister, Sh. Manoj Sinha Hon’ble Lt. Governor, JKUT, Sh. Omar Abdullah Hon’ble Chief Minister JKUT and Sh. Surinder Kumar Choudhary, Deputy Chief Minister JKUT, to kindly intervene in the matter and save the existing working industrial units of J&K by the grant of state budgetary allocation for existing units as on 01-04-2021 and Units under Substantial Extension after 01-04-2021 as Fiscal Incentives for next 10 Years  for their survival as under:

1. 1. Turnover Incentive on the Actual Turnover basis without any capping.
   2. Reimbursement of Gross GST-Linked Incentive (IGST/CGST/SGST) to Working Industrial Units.
   3. Interest Subvention on Working Capital Loan on an actual basis.