Independent , Honest and Dignified Journalism

BBIA’s Plea to Lt. Governor for the Establishment of a High-Level Committee to Expedite Resolution of Pending Industrial Issues and Ensure Survival of Existing Working Units

BBIA REQUEST HON'BLE LT. GOVERNOR TO RESOLVE PENDING ISSUES RELATED TO STATE FISCAL INCENTIVES FOR EXISTING WORKING INDUSTRIAL UNITS FOR THEIR SURVIVAL

Jammu,09-05-2024: A meeting of Bari Brahmana Industries Association (BBIA) was held 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, Sh. Rajesh Jain Secretary and Sh. Vivek Singhal Treasurer BBIA to discuss the plight of Existing Working Industrial Units who are suffering very badly due as number of issues related to the Existing working Industrial Units pending with the Industries and Finance Department since long but in spite of repeated requests and reminders nothing has been done so far.

In this regard, we wish to draw the kind attention of the Hon’ble Lt. Governor that the Fiscal Incentives for the working Industrial Units as on 31-3-2021 has been diluted to 50% in post-GST Regime as per the details available with us as the total amount as Fiscal Incentives was granted to Industrial Units by State Govt. prior to 08-07-2017 was in the tune of Rs. 1000 Crores which includes Rs. 600 Crores as VAT Remission, Rs. 200 Crores as Turnover Incentives on Interstate Sale and Rs. 200 Crores as Toll Tax Exemption whereas the Fiscal Incentives in 2021 has been diluted to Approx. Rs. 500 Crores which includes Rs. 450 Crores as GST Reimbursement and Rs. 50 Crores as Turnover Incentive resulting a major Setback to Existing Working Industrial Units after 31-03-2021 as they were not able to compete with the outside Suppliers due to Locational Disadvantages, non-availability of Raw Material in J&K resulting in higher cost of production after the  removal of Toll Tax w.e.f. 01-01-2020.

It is worthwhile to mention here that even the release of funds is the least priority of the Finance and Industries Department for the reimbursement of Fiscal Incentives resulting the GST Reimbursement Claims amounting to Rs. 36.20 Crores and Turnover Incentives Claims against the approved Budget of Rs. 50 Crores for the Financial Year 2021-22 has been returned Unpaid by Treasury due to reason best known resulting in the Budget amount allocated for the same has been lapsed and it has been brought to our notice that the Claims shall be adjusted in the Budget allocation of 2024-25 resulting further dilution in the Budget Allocation for the current Financial Year which is unjustified as per our opinion.

We also wish to draw the kind attention of Hon’ble Lt. Governor the number of Industrial items being manufactured by the Registered Industrial Units classified under the Negative List by the Finance Department under SRO 63 of 2018  for availing Fiscal Incentives which also includes Edible Oil and Roasted Groundnut being consumed by local people of State resulting great resentment amongst the Unit Holders as they are not able to compete with the Units being setup under the NCSS-2021 Scheme of Govt. of India in which no such items classified under Negative List.

We request  Hon’ble Lt. Governor Sh. Manoj Sinha to constitute a High Level Committee under the Chairmanship of Chief Secretary  for the early Resolution of pending issues of Existing working Industrial Units related to Fiscal Incentives for their Survival.