Jammu, 13-04-2026: FOIJ is very disturbed on the casual attitude of the Govt. towards the existing industry. The existing industry of J&K is running under stress due to the non-availability of appropriate and urgent incentives. Sh. Virendra Jain, Chairman, FOIJ, urges the Govt to consider the issues being faced by the industry of J&K so as to save the existing industry from total collapse.
KEY DEMANDS & CONCERNS:
1. Restoration of Fiscal Incentives: FOIJ noted that prior to GST implementation, industrial units received substantial benefits through VAT remission, CST exemption, Toll Tax Exemption and Excise refunds amounting to approximately Rs. 2000 crore annually. Post GST, these benefits have significantly reduced to around Rs. 300 to 350 crores, adversely impacting industrial viability. The Federation has urged the Govt. to provide budgetary support through reimbursement of SGST,CGST,IGST, working capital interest subvention and turnover incentives.
2. Extension of Turnover Incentive period: The existing turnover incentive scheme effective from April, 2021 and which expired on March, 2026 provided limited relief. FOIJ requested an extension of this incentive for an additional five years to prevent industrial closures.
3. SGST Reimbursement Expansion: The Federation has demanded extension of SGST reimbursement benefits under SRO 63 to units undertaking expansion/ diversification/additional line of activity without restrictive conditions.
4. Interest Subvention Support: With the central interest subvention scheme expired in March, 2026, FOIJ request the J&K Govt. to provide 5% interest subvention on working capital loans for existing industries for another five years.
5. Marketing Support and Procurement Policy Reforms: FOIJ raised concerns over reduced procurement opportunities due to changes in the Govt. e-Market place (GeM) system. It emphasized the need to retore purchase preference policies for local industries which are crucial for their survival given geographical disadvantages and high costs of production.
6. Power Amnesty and Tariff Relief: The Federation has requested a one-time power amnesty for industrial units and demanded freezing of existing power tariffs for at least five years. It also urged the rollback of recent tariff hikes affecting power-intensive industries.
7. Conversion to Freehold Land Rights: FOIJ highlighted the long pending demand for conversion of leasehold industrial land to freehold which would improve access to finance and support industrial expansion.
FOIJ cautioned that without timely intervention, many industrial units may be forced to shut down, leading to large-scale unemployment and economic distress in the region.
The Federation of Industries, Jammu expressed confidence that with timely and adequate fiscal support, the MSME sector can significantly contribute to the region’s economic development. It noted that proper implementation of incentives could generate more employment opportunities and strengthen the socio-economic fabric of Jammu & Kashmir.
FOIJ requested Hon’ble Lt. Governor Sh. Manoj Sinha, Hon’ble Chief Minister Jenab Omar Abdullah, Hon’ble Dy Chief Minister Sh. Surinder Kumar Chowdhary In charge Minister Industries & Commerce to personally take interest and come to the rescue of existing industrial sector of J&K.