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Existing Working Industrial Units on the Verge of Closure in Post UT Regime-FOIJ

02-10-2022: An urgent Meeting of the Federation of Industries, Jammu was held today under the Chairmanship of Sh. Lalit Mahajan, Chairman FOIJ, in the presence of  Sh. Rajesh Jain, Sh. Deepak Dhawan, Sh. Jatinder Aul Co-Chairman, Sh. Virendra Jain Secretary General, Sh. Viraaj Malhotra Convenor and other Executive Committee Members to discuss the callous attitude of the  JK UT Administration towards the Local Working Existing Units with the majority of Micro, Small & Medium Enterprises.

While appreciating the efforts of Govt. of India working under the able guidance of Hon’ble Prime Minister Sh. Narendra Modi, Hon’ble Union Home Minister Sh. Amit Shah with the grant of Rs.28400 Crores Package of Incentives for the setting up of New Industrial Units in J & K  which will improve the Economic Health of the peoples of J & K UT but it is worthwhile to mention that only the Survival, Revival and Good Health of Existing working Industrial Units with the majority of Micro/Small industry will give a good signal to the Prospactive  Investors from outside the Union Territory of J & K. 

 During the course of discussions, the Members present in the meeting raised serious concerns that the Existing Industrial Sector is facing hardship and about to collapse due to withdrawal of Price/Purchase Preference in Govt. purchases in post-UT Regime  /Non-availability of Fiscal Incentives at par with the New Industrial Units as per the Package of Incentives 2021 as the ratio of quantum of Incentives for Existing Industry with the majority of Micro/ Small sector in relation to employment is much lower v/s package of incentive for the new industry as notified by Ministry of Industries & Commerce Govt. of India.  if the problems of the Existing industry are not resolved on a priority basis, they will be forced to close down, thereby rendering lakhs of workers jobless which neither the Govt. nor the entrepreneurs can afford.

It is worthwhile to mention here that the  JK UT Administration seems to be having a casual approach towards the Existing as well as New Industrial Units being established under the Central Package of Incentives as it has been observed that  Administrative Secretaries have been frequently transferred or given additional charge in a span of last two years resulting little attention has been given to resolve the pending issues of the Existing Industrial Units as well as in respect of Development of New Industrial Estates for providing Land in time bound manner to the prospective Investors and we fear that the Prospactive Investors may delay in the setting up of their Units or abandoned their projects due to non-availability of Developed Land in the proposed  Notified Industrial Areas as no developed Land except in Ghati Ind. Areas) in Jammu Region is available for setting up of the Units and if the problem of Existing Units not solved on priority basis the Existing Unit Holders also opt for the clouser of their Units resulting a serious setback to the Govt. of India  Industrialization program of Union Territory of Jammu & Kashmir.

It is pertinent to mention here that the Representation of Stake Holders has been withdrawn while constituting the Boards of the different Corporations relating to the Industries Department in post-UT Regime resulting it is not possible for the Stakeholders to highlight the various issues related to the Industrial Sector in the Board Meetings.

We humbly request  Hon’ble Union Home Minister Sh. Amit Shah and Hon’ble  Lt. Governor   Sh. Manoj Sinha and Sh. Arun Mehta Chief Secretary of JK UT for their kind intervention to resolve the matter on an urgent basis which will provide great relief to the Existing Unit Holders as well as to prospective Investors.