INVESTORS AWAIT FISCAL CLARITY
The New Central Sector Scheme (NCSS-2021), once hailed as a transformative step for Jammu and Kashmir’s industrial future, now stands at a crossroads. Designed to promote equitable growth, attract fresh investment, and create employment opportunities, the scheme is currently burdened by exhausted fiscal allocations, pending registrations, and growing disillusionment among entrepreneurs who once believed in its promise.
At present, around 579 industrial units with investments exceeding ₹17,000 crore and potential employment for nearly 54,000 youth remain in limbo. Many investors have already purchased land, built infrastructure, or even begun production, yet their registrations and fiscal incentives are pending. The Industries Department’s request for an additional ₹40,000 crore remains under consideration by the DPIIT, leaving the future of these ventures uncertain and investor confidence shaken. A major concern lies in the uneven distribution of incentives. Reports suggest that nearly 67 percent of funds have gone to just 3 percent of large industries, leaving the remaining 97 percent mostly small and medium enterprises, with only a fraction of the support. This imbalance challenges the principle of inclusive development and alienates local entrepreneurs who have long sustained Jammu’s industrial ecosystem. The issue of land allotment adds to the distress. While large corporations secured expansive tracts exceeding 200 kanals, small and medium investors report stagnation, citing the absence of land allotment committee meetings in Jammu province during the past two fiscal years. Furthermore, discrepancies between proposed and actual investments of registered units indicate that real investments are often 20 to 25 percent lower than projected. Rationalizing these figures could potentially free ₹7,000 to ₹8,000 crore within the current allocation, allowing more pending applications to be cleared and sending a strong message of transparency and fairness. The uncertainty deepens with the absence of a notified industrial and warehousing policy at the UT level. Incentives like capital investment subsidies and interest subvention, which once sustained small enterprises, remain suspended. This lack of policy direction has stalled expansion projects and prevented Jammu and Kashmir from realizing emerging opportunities in the logistics and warehousing sectors. The consequences extend beyond financial setbacks. Investor confidence, once cautiously optimistic, is fading. For MSMEs and first-generation entrepreneurs, many of whom are deeply rooted in the region, the delays have become existential. With crores already invested and livelihoods on the line, the region risks losing the very momentum it sought to build under the new policy framework. Corrective measures are now essential. The Union Government must enhance the scheme’s financial allocation to accommodate pending applications and ensure parity in fund distribution. Rationalization of inflated project costs could unlock surplus resources, while land allotments for MSMEs should be expedited. Equally important is the prompt release of long-pending SGST refunds and turnover incentives, which have reportedly been delayed for four consecutive quarters, affecting liquidity and operations.
The timely notification of industrial and warehousing policies is crucial for providing clarity, stability, and long-term direction to investors. Industrial growth in Jammu and Kashmir is not merely an economic objective, it is a cornerstone of employment generation, social stability, and confidence-building in a region striving for renewal. Converting vision into verifiable progress will determine whether the promise of a fair, inclusive, and resilient industrial economy truly takes root in the Union Territory.
