Mass Labour migration, production losses cripple J&K industry; FOIJ demands immediate relief or warns of shutdowns

Jammu, 15-05-2025: A meeting of the Federation of Industries Jammu was held today under the chairmanship of Sh. Lalit Mahajan, chairman of FOIJ, in the presence of Sh. Virendra Jain, Sh. Jitender Aul, Sh. S.C. Dutta, Sh. Ajit Bawa, Sh. Raman Jolly, co-chairman, Sh. Sanjay Langer, secretary general, Sh. Viraaj Malhotra, convener, and other executive committee members of the Federation of Industries Jammu, to discuss the uncertainty that prevails in the minds of working industrial units of Jammu & Kashmir due to the ongoing current situation of since last few days, resulting in huge financial losses to working industrial units of Jammu & Kashmir.

It is worthwhile to mention here that industrial units in Jammu & Kashmir UT are suffering very badly due to the current conflict between India and Pakistan, resulting in massive production losses due to the Mass Migration of skilled/semi-skilled and unskilled industrial workers. Steep increase in the transportation cost of raw materials and finished goods, unscheduled power cuts, sharp decline in the demand of Finished Goods  Resulting huge burden of bank interest on working capital and term loans, and it is the need of the hour to come to the rescue of the existing industrial sector of J&K with the following Fiscal measures  immediately as instant relief to compensate for the losses due to the current situation:

1. Grant of financial support to industrial units as a special relief package with the enhancement of a 20% working capital limit for one year within the existing collateral security of all the working banks in J&K.
2. Waive off interest for the term loan and working capital loan up to 30-09-2025 or till the situation improves.
3. Restructure the term loan with the extended tenure, reducing the interest rate, and changing the repayment schedule.
4. Relax the NPA guidelines for the Industrial Sector.
5. Insurance cover for Industrial Units to cover the Losses due to War.
6. Release of pending payments of Industrial Sector Including Fiscal Incentives Claims pending with government treasuries, immediately.
7. Waive off the Minimum Demand charges of industrial power bills for the next six months.
8. Defer the proposed power tariff hike.
9. Extension of Power Amnesty for Industrial Sector.

We request Hon’ble Lt. Governor Sh. Manoj Sinha, Hon’ble Chief Minister Jenab Omar Abdullah, and Hon’ble Deputy Chief Minister Sh. Surinder Kumar Choudhary to consider our request for the grant of instant financial relief to the Industrial Sector of Jammu & Kashmir and save them from closure.