Association of Industries Urges Govt. Support & Call for Purchase Preference and Timely Release of Pending Payments

08-06-2023: In a meeting presided over by its president, Sh. Rajesh Jain, the Association of Industries (Regd.) Gangyal pleaded with the Honourable Lt. Governor, Sh. Manoj Sinhaji, to protect J&K UT’s existing industry, which is reliant on government purchases.

AOI wishes to submit that a vast majority of existing local Micro/Small units have especially been established to cater to the requirements of the various Govt. Deptts./Agencies in their development programmes. All these local units have been supplying their products adhering to the prescribed standards duly certified to the entire satisfaction of their procuring consumers and a majority of these units are exclusively dependent upon these procuring Department for their very existence/survival due to locational disadvantages as we are sitting at the far end of the Country with very limited Market of our Products other than the Govt. Departments.   

 Your kind attention is invited that the J&K Govt. through its Industrial Policy of 1995, 2004, and 2016 has specially protected the genuine rights of the local units by providing  Purchase/Price preference as a Marketing Support and J&K Govt. through Industrial Policy of 2021-30 vide its clause No. 4.11.3 has protected the local manufacturers. However, the Finance Department has altered the procurement process for the financial year through the ‘GeM Portal’ resulting procurement process has adversely impacted the entire economic activity/viability of the local units resulting in their forced closure of units as these units are unable to sell their products to Govt. Departments such as PDD, PHE, Forest, Education departments, etc.  

 It is worthwhile to mention here that in spite of the GeM portal, Purchase preference is available to local manufacturers even in developed states like Punjab and Rajasthan whereas we are working in an underdeveloped UT having local disadvantages situated at the far end of the country bearing the high cost of production and higher input cost.   

 It is pertinent to mention here that we are unable to compete with the Manufacturers/Dealers of the developed states in the absence of Marketing Support from the Govt. Moreover, they have to sell their surplus production. Existing Industries are bound to close down their shutters if marketing support is not provided by Govt. resulting in the unemployment of thousands of workers along with entrepreneurs themselves.  

 We request your good self to save the Local Micro and Small Scale Industries by providing Marketing Support in the shape of Purchase Preference for the supply of Goods to the JKUT Govt. Departments. 

 AOI also requests the Govt. to release the payments pending with various departments against the supply of goods which are already delayed for a long period. The delay in payment adds to the woes of the entrepreneurs who are already in the phase of the crisis. Moreover, the delay also attracts unwanted litigations. 

 AOI requests Hon’ble Lt. Governor Sh. Manoj Sinhaji, Chief Secretary Dr. Arun Mehtaji, Commissioner Secretary Sh. Vikramjit Singhji to come to the rescue of the existing industry which otherwise will get perished. The meeting was also attended by S/Sh. S.B.Abrol, Sr.Vice President/ Balram Gupta, Vice President/Virendra Jain, General Secretary/ Vijay Kumar Sharma, Secretary, and Lavinder Singh Puri, Treasurer.