FOIJ Highlights Challenges of Existing Industries Post-370, Seeks CM’s Intervention for Survival

Jammu, 03-12-2024: A delegation of the Federation of Industries Jammu under the Chairmanship of Sh. Lalit Mahajan, along with Sh. S.C. Dutta, Sh. Ajit Bawa, and Sh. Raman Jolly, Co-Chairman, FOIJ met with Sh. Omar Abdullah, Hon’ble Chief Minister at Jammu, to highlight the urgent issues related to existing working industrial units of Jammu and Kashmir & submitted a detailed representation regarding the problems being faced by local working industrial Units.

During the course of the discussion, Sh. Lalit Mahajan draws the kind attention of Hon’ble Chief Minister Sh. Omar Abdullah towards the plight of local working industrial units of J&K, which suffered very badly due to the dilution of fiscal incentives after the abrogation of Article 370, resulting in great resentment amongst the working industrial units providing employment to lakhs of local people of J&K.

FOIJ Delegation Flags Fiscal Challenges, CM Omar Abdullah Promises Support for Local Industries

FOIJ DELEGATION INTERACTS WITH SH. OMAR ABDULLAH HON’BLE CHIEF MINISTER OF JKUT TO SAVE LOCAL EXISTING WORKING UNITS OF J&K FROM CLOUSER

The Existing Micro, Small, and Medium Working Industries in Jammu and Kashmir having an approximate investment of Rs. 30000 crores prior to 31-3-2021 mostly owned by “Sons of the Soil”, the current financial support in the shape of fiscal incentives provided under the current policy framework is grossly inadequate, which is equal to Rs. 450 Crores per year as SGST refund and a paltry Rs. 20-25 Crores per annum as turnover incentives. In stark contrast, New Industries under the New Central Industrial Package got the whooping allocation of Approx Rs. 3266 crores per annum, resulting in stiff competition from New Industrial Units setup under NCSS 2021, due to which great resentment amongst the working Micro, Small, and Medium Enterprises working in spite of all the odds since long, i.e. facing Militancy since 1990, Shallow Market Avenues due to Land Lock State, Limited access to domestic as well as international markets due to additional transportation costs of raw materials and dispatch of finished goods.

Sh. Lalit Mahajan requested the Hon’ble Chief Minister to provide adequate funds to Existing Working Industrial Units  at par with the Central Package of Incentives for new units which includes the Enhancement of Budgetary Allocation for the Reimbursement of Turnover Incentives to Existing Industries  as per Govt. order No- 127- Ind. of 2021 dated 21-05-2021, GST Linked Incentives for Existing Units and Units under Substantial Expansion after 01-04-2021, State Budgetary Allocation for the Reimbursement of Working Capital  Interest Subvention, Marketing Support in the shape of Price/ Purchase Preference & also Request for the Conversion of Lease Holder Rights into Free Hold Rights for Existing Industrial Units working in Union Territory of Jammu & Kashmir, Removal of Negative List for Edible Oil & Roasted

Groundnuts, Allocation of funds to J&KSIDCO/SICOP for the upgrade of existing industrial estate, & other issues for immediate redressal for the survival of the existing working industrial units of J&K.

 Sh. Omar Abdullah, the Hon’ble Chief Minister, listened to the current scenario of the existing working industrial units of J&K patiently & assured that his government will provide all sought of Hand Holding Support for the revival of the existing working industrial units of the UT.

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