26-4-2023 : The exclusion of industrial stakeholders from the reconstituted Boards of Directors of Jammu and Kashmir Small Scale Industries Development Corporation (SICOP) and J&K State Industrial Development Corporation Ltd. (SIDCO) has been met with dismay by the Federation of Chambers of Industries Kashmir (FCIK). The two corporations were reconstituted under Government order No 109-(JK)IND of 2023 with 10 members each, all of whom were government officials. This marks a departure from the norm before 2019, when representatives from industrial stakeholders were included on these boards.
The FCIK expressed surprise that the orders were issued on the same day as the Chief Secretary called for closer cooperation between industry and the government to address the grievances of industries in the UT. The FCIK had previously been on the board of all industrial-related corporations and committees since their inception, which had yielded positive results in the development of the industrial sector. By being part of these boards, the FCIK could critically and objectively analyze proposed schemes and programs of these corporations and incorporate necessary amendments to make them industry-friendly.
The FCIK claimed that the exclusion of outside stakeholders from the boards would lead to the approval of unilateral anti-industry decisions without any opposition. The FCIK has observed that most of the decisions taken in the boards without any outside stakeholders have worked against the growth and development of the existing industry. For example, one decision was about collecting part premium with every change in the constitution of an industrial unit, which only aimed to fill the coffers of corporations, ignoring the fact that these corporations were incepted primarily for the growth and promotion of industry.
The FCIK regretted that the Industries and Commerce Department in the UT of Jammu and Kashmir had drastically changed its vision and strategic planning process. Most of its efforts and time were now being used to attract prospective enterprises, resulting in neglect of the existing industry with thousands of crores of investment already made in the sector.
The FCIK has urged the government for effective engagement with industrial stakeholders to translate their needs into industrialization goals and create the basis of strategy development for the industry under the ambitious Central Sector Scheme of 2021.