Refusal of Turnover Incentive reimbursement Claims By Finance Department a Set Back to J&K’s Working industrial Units-FOIJ

Jammu, 01-04-2025: An urgent meeting of the Federation of Industries, Jammu, was held under the chairmanship of Sh. Lalit Mahajan, Chairman FOIJ, in the presence of Co-Chairmen Sh. Virendra Jain, Sh. S.C. Dutta, Sh. Jatinder Aul, Sh. Ajit Bawa, and Sh. Raman Jolly, with the participation of a large number of members of the Federation, to discuss the issue regarding the refusal of the 1st Installment of 10% Turnover Incentive Reimbursement Bills by the Finance Department for the Financial Year 2022-23 of Existing Working  Industrial Units of Jammu & Kashmir.

The members expressed their agony over the attitude of the government toward the existing industrial units, as the Govt failed to release the payment of the Budgetary allocation of Rs. 50 Crores as per the Industrial Policy 2021 in spite of the facts that assurances has been given by the Present Popular Govt. that 2 to 3% Turnover Incentive is being granted to working Industrial Units as per the Industrial Policy 2021.

It is pertinent to mention here that while Working Industrial Sector of J&K expecting the announcement of more incentives by the popular Govt. but the present Incentive of Turnover already announced/declared and promised, only 14 to 15% has been approximately given in respect of Claims filed for 2020-21 whereas during the current Financial Year of 2024-25, the 1st Installment of Turnover Incentives Bills pertaining to FY 2022-23 has been refused by the Finance Department due to reason best known to them resulting the lapse of Funds meant for the Turnover Incentives for the Financial Year 2022-23 which we termed as Betrayal with the Existing working Units of Jammu & Kashmir majority of the same being run by the Sons of the Soil in spite of all the odds since long.

It is worthwhile to mention here that while finalizing the Budget Proposals for the Financial Year 2025-26, the Industries Department made a provision of mare Rs. 130 Crores which include Turnover Incentive Claims for the Financial Year 2022-23, 2023-24, and other subsidies like DG Set/Pollution Control Equipments and we fear the majority of the same shall be claimed by the New Units being set Up under the NCSS-2021 Scheme for the purchase of DG Set/Pollution Control Equipments which may be further reducing the Budgetary Allocation for the Turnover Incentives Claims for the Financial Year 2022-23 and 2023-24  Cores resulting in to clouser of Industrial working Units in near future.

The Federation of Industries, Jammu, requests the Hon’ble Lt. Governor Sh. Manoj Sinha, Hon’ble Chief Minister Jenab Omar Abdullah, and Hon’ble Deputy Chief Minister Sh. Surinder Kumar Choudhary to come to the rescue of the existing industrial sector of J&K by revalidating the funds allocated in the financial year 2024-25 for the release of turnover incentives claims of the financial year 2022-23  and also enhancing the budgetary allocation for the industrial incentives from Rs. 130 crores to approx. Rs. 500 crores for the settlement of turnover incentives and other subsidies for the industrial sector of J&K.