Bari Brahmana Industries Association Delegation Presents Concerns on Fiscal Incentives to New J&K Industries Director

Jammu, 09-11-2023 : A Delegation of Bari Brahmana Industries Association under the Presidentship of Sh. Lalit Mahajan in the presence of Sh. Tarun Singla Sr. Vice President,  Sh. Ajay Langer Vice President, Sh. Viraaj Malhotra General Secretary interacts with Sh. Arun Kumar Manhas, JKAS, Director, Industries and Commerce, Jammu today in his office chamber.

While welcoming Sh. Arun Kumar Manhas, JKAS, as Director, Industries and Commerce, Jammu, Sh. Lalit Mahajan highlighted the issues regarding the uncertainty that prevails in the mind of Existing working Industrial Units and units under Substantial Expansion due to non-availability nos. of State/Central Fiscal Incentives at par with the new Units under NCSS-2021.

During the discussion, Mr. Mahajan drew the kind attention of Sh. Arun Kumar Manhas, JKAS, Director, Industries & Commerce Department towards the notification No- 1(1/2020-SSS) dated 19-02-2021 issued by Govt. of India as New Central Sector Scheme for Industrial Development of Union Territory of Jammu & Kashmir by the virtue of which GST Linked Incentive of 300% on the Investment in Plant & Machinery has been granted to New Unit to be established on or after 01-04-2021 under the said Scheme whereas no Gross GST Reimbursement Incentive has been given to Existing Units who Opt for Substantial Expansion resulting stiff competition being faced by the Existing Units from New Units to be established on or after 01-04-2021 under NCSS-2021.

During discussions, Sh. Lalit Mahajan president & Sh. Tarun Singla Sr. Vice President, BBIA highlighted that in past prior to GST Regime, all the Fiscal Incentives at par with the New Units always granted to the Existing Units also Under Substantial Expension as per the previous Notification of Govt. of India/State Govt.  since 2002 onwards till IDS Scheme 2017 by the virtue of which all the Fiscal Incentives always applicable to Existing Units under Substantial Expension whereas under the NCSS 2021 the Fiscal Incentives in the shape of Reimbursement of Gross GST Reimbursement not applicable to Existing Units if they go for the Substantial Expension after 01-04-2021 resulting numbers of Existing Units already in the process of closing down their Units or shifting to other parts of the Country as it is not possible for them to compete with the New Units in near future due to locational disadvantages, limited local Market avenues, higher transportation cost of Raw Materials and Finished Goods which may be resulting into mass scale retrenchment of Industrial Workers resulting rapid increase in the Unemployment graph of JKUT.

The other issue highlighted during the meeting that are request for the Enhancement in Budgetary Allocation for the Reimbursement of Turnover Incentives to Existing as per Govt. order No- 127- Ind. of 2021 dated 21-05-2021. It is pertinent to mention here that the Fiscal Incentives announced by Govt. exist only on Paper as the Industries Department failed to release the pending Claims amounting to the app. Rs.210 Crores for the Financial Year 2021-22 in spite of repeated requests and reminders to enhance the Budgetary allocations from Rs. 50 Crores to Rs. 210 Crores, Removal of Edible Oil from the Negative List of SRO 63 dated 05-02-2018 extended up to 31-3-2031  vide SO 243 dated 16-07-2021 issued by Finance Department for the grant  Budgetary Support to Industrial Sector of J & K, Inclusion of Distribution Transformer as Electrical Component while computing the value of Plant & Machinery.

Sh. Arun Kumar Manhas, JKAS, Director, Industries and Commerce, Jammu gave a patient hearing to all the issues highlighted by Office Bearers of Bari Brahmana Industries Association & assured the Delegation that all the issues will be resolved for the survival of the Existing Industrial Sector.