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Jammu Industries Express Resentment Over Budget Cuts in Turnover Incentives: BBIA Calls for Full Payment of Turnover Incentives

BBIA Resent Release of Part Payment of Turnover Incentive to Industrial Units by Industries Department for the Financial Year 2021-22 

Jammu, 07-06-2024 : An Executive Committee meeting of the Bari Brahmana Industries Association (Regd.) was held under the Presidentship of Sh. Lalit Mahajan to discuss the part payment of Turnover Incentives Claims for the F.Y. 2021-22 released by the Industries Department

Resentment Mounts Over Budget Cuts: Bari Brahmana Industries Association Demands Complete Turnover Incentive Disbursement

During the course of discussions the member present in the meeting draw the  kind attention of Hon’ble Lt. Governor Sh. Manoj Sinha towards the release of part payment  of 8 to 10% of the Budget allocation of Rs. 50 Crores to some Industrial Units of Jammu province in the Month of May 2024 against the Claims of Rs. 176 Crores of  Turnover Incentives submitted for the Financial Year 2021-22 resulting great Resentment amongst the working Industrial Units as the allocated amount of Rs. 50 Crores has been reduced to 8 to 10% of the Claimed amount which mean the  Approx. Rs. 14 Crores has been released against the Budget Allocation of Rs. 50 Crores which means that the balance amount of Rs. 36 Crores earmarked for Turnover Incentive has been diverted for some other work by Industries Department.

It is pertinent to mention here that in the Month of May 2024 some of the Turnover Incentive Claims of the Industrial Units has been cleared against the Budgetary Allocation for the Financial year 2024-25 resulting the reduction of Allocation funds of Turnover Incentive for the Financial year 2024-25 which we termed as BETRYAL by the Govt. with the Existing Units working in J&K in-spite of all the Odds and already passed off the benefit of Turnover Incentive to the Purchasers of Finished Goods  to run their units for their survival and due to which the Working Capital of the Units has been eroded.

It is unjustified that Govt. has withdraw the Budgetary Support to Industrial Units under SRO No. 431 by the virtue of which saved Approx. Rs. 200 Per Annum and replace the same with the allocation of Rs. 50 Crores Per Annum as Turnover Incentives as per Industrial Policy 2021 resulting a setback of approx. 150 Crores to Existing working Units established in J&K

It is worthwhile to mention here that in 2018, Interstate Turnover Incentives as Budgetary Support to Industrial Units was notified by the Finance Department vide SRO No.431 of 2018 of Finance Department dated 25-09-2018   valid up to 31-3-2026 by the virtue of which approx. Rs.200 Crores Per Annum was disbursed to Industrial Units till 31-3-2021 but said SRO has been withdrawn by the Finance Department w.e.f. 01-04-2021 and Industries Department has notified Industrial Policy 2021-30 with the initial Budget under Turnover Incentives to Industrial Units of Rs. 50 Crores Per Annum. w.e.f 01-04-2021 with the assurance that the Budgetary allocation shall be increased on the basis of Actual Turnover Incentives Claims of the each Financial Year and accordingly Turnover Incentive Claims of Existing Units of J & K amounting to Rs. 207 Crores has been received and processed by the Industries Department for the Financial Year 2021-22 but till date against only 8 to 10% amount of the Turnover Incentives Claims of some of the Industrial Units of Jammu Province  has been released whereas nos. of Industrial Units registered with District Ind. Centre Jammu not yet get any amount due to non availability of funds with the Industries Department in the  current Financial year.

It is unjustified that Govt. has withdraw the Budgetary Support to Industrial Units under SRO No. 431 by the virtue of which saved Approx. Rs. 200 Per Annum and replace the same with the allocation of Rs. 50 Crores Per Annum as Turnover Incentives as per Industrial Policy 2021 resulting a setback of approx. 150 Crores to Existing working Units established in J&K State since long and working in spite of all the Odds like Limited Market Avenues as we are surrounded by the hostile Neighbors like China and Pakistan, Locational Disadvantages resulting higher cost of Raw materials and the Stiff competition from the Units Located in the Neighboring States and providing Direct/Indirect Employment to around four Lac peoples of the State which is equivalent  to State Govt. Employees.

We request Hon’ble Lt. Governor Sh. Manoj Sinha for immediate intervention in to the matter for the release of amount allocated for the Turnover Incentive to Industries Department to clear all the pending Turnover Incentive Claims for the Financial year 2021-22 and 2022-23.