Industrial Crisis in J&K: BBIA Demands Equal Incentives for Existing Units and New Ventures

Jammu, 29-11-2024: An Executive Committee meeting of the Bari Brahmana Industries Association (Regd.) was held under the Presidentship of Sh. Lalit Mahajan in the presence of Sh. Taun Singla Sr. Vice President, Sh. Rajesh Jain Secretary, Sh. Rishi Kant Gupta Treasurer & other Executive Members of BBIA to discuss the plight of  Existing working  Industrial Units of Jammu and Kashmir suffering very badly and on the verge of closure due to dilution of Fiscal Incentives after the Abrogation of Article 370 which is mainly due to the Gross Negligence and Apathetic approach of the UT Government Departments related to the Industrial Sector towards the Existing Working Industrial Units and in spite of repeated Assurances and Commitments, the Government has failed to provide the necessary Fiscal  Incentives and support to sustain working  Local Industries, leaving them in a dire state which may be resulting into mass scale retrenchment of Industrial Workers in future.

Dilution of Fiscal Incentives Leaves J&K Industries Struggling; BBIA Seeks Urgent Remedies

During the course of discussions, the Members present in the meeting raised the serious concerns about the ailing Existing Working Units of  Jammu & Kashmir Neglected after the Abrogation of Article 370  due to the negative attitude of UT Administration with the dilution of State Fiscal Incentives in spite of the facts that facing locational disadvantage, militancy since 1990, Hostile  hostile Environment, Limited Marketing Avenues the Existing Industrial Units working since long and providing Direct/ Indirect Employment to Lakhs of Local People of Jammu & Kashmir.

We wish to draw the kind attention of Sh. Narendra Modi, Hon’ble Prime Minister, Sh. Amit Shah Hon’ble Union Home 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 Jammu & Kashmir remained Industrial Backward areas till 2002 and keeping in mind the Locational Disadvantages and other related facts, Govt. of India and State Govt. always  Extended Hand Holding Support to Existing Industrial Units and New Units with the grant of Central/State Fiscal Incentives to Existing Industrial Units and New Units from time to time since 2002 resulting rapid Industrial Growth has been reported.

It is pertinent to mention here 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 Negative Attitude of UT Administration and in respect of Central Package of Incentives 2021 Govt. of India has Notified Central Package of Incentive as per NCSS-2021 Industrial Development Scheme with the grant of Rs. 28400 Crores Fiscal Incentive out of which Rs. 582 Crores has been allocated for the Existing Units on the recommendation of UT Administration which is equivalent to mere  2% of the Central Package, which is totally unjustified whereas all the previous packages of Govt. of India all the Fiscal Incentives has been granted to Existing Units under Substantial Expension at par with New Units, resulting great resentment amongst the Existing Working Units, mostly owned by Sons of the Soil.

It is worthwhile to mention here that due to least consideration towards Existing Working Units of J & K  UT Administration, the payment of diluted Fiscal Incentives always released at the sweet will of the concerned  Departments as the turnover incentive payment of 2021-22 has been released in 2024 with the meager amount of 15% of the claim submitted, whereas the payment of claims for the period 2022-23 is still awaited for the reasons best known to the concerned departments.

We urge the Sh. Narendra Modi, Hon’ble Prime Minister, Sh. Amit Shah Hon’ble Union Home 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 with the allocation of Rs. 2840 Crores per annum package at par with the NCSS-2021 Scheme for the survival of Existing  Units as the present UT Government’s focus on promoting New Industries has delivered a fatal blow to the Established ones, leaving us to struggle into a miserable position that is yet to be taken seriously and request for  following Remedial  Measures to save the Existing working Units of J & K:-

1. 1. Provide meaningful and immediate fiscal incentives at par with new units to existing industries.
   2. Create a level playing field to enable established industries to compete.
   3. Ensure timely turnover incentives & GST reimbursements by UT Industries/ Finance Department.
   4. Address the long-standing issues of policy negligence and provide a conducive environment for industrial growth.