Over 579 Units Await Relief as Exhausted NCSS-2021 Funds Stall Registrations and Jeopardize ₹17,000-Crore Investments

• INDUSTRIAL INVESTMENT AT STAKE DUE TO NON-AVAILABILITY OF STATE/CENTRAL FISCAL INCENTIVES TO PROSPECTIVE INVESTORS—BBIA
• Fiscal Uncertainty Hits J&K Industry, Hundreds of Units Face Investment Deadlock

Jammu, 10-09-2025: Sh. Lalit Mahajan, President Bari Brahmana Industries Association and Co-Chairman Federation of Industries Jammu, draws the kind attention of Sh. Narendra Modi, Hon’ble Prime Minister, Sh. Amit Shah, Hon’ble Home Minister, Shri Piyush Goyal, Hon’ble Minister of Commerce and Industry, Sh. Manoj Sinha, Hon’ble Lieutenant Governor, Jenab Omar Abdullah, Hon’ble Chief Minister, towards the uncertainty prevailing in the minds of approximately 579 Prospective Investors, majority of MSME Units being managed by Sons of Soil, who have submitted their Application for the setting up of New Units and Existing Units under Substanital Expension to Industries Department under NCSS-2021 Industrial Development  Scheme for J & K notified by the Ministry of Industries and Commerce Govt. of India in 2021 awaiting grant of Registration as the Funds allocated under the Scheme stands exhausted and the request of Industries Department JKUT pending with DPIIT for the grant of additional funds of approx. Rs. 40000 Crores for their survival.

While highlighting the issue, Mr. Mahajan drew the kind attention of Sh. Narendra Modi, Hon’ble Prime Minister, Sh. Amit Shah, Hon’ble Home Minister, Shri Piyush Goyal, Hon’ble Minister of Commerce and Industry, Sh. Manoj Sinha, Hon’ble Lieutenant Governor, Jenab Omar Abdullah, Hon’ble Chief Minister that out of  Budgetary allocation of 28400 Crores,  67% allocation has been given to 3%  Large Scale Units with the  approval  Registration under NCSS-2021 Scheme whereas only 33% Budgetary allocation has been granted in favour of 97% MSME Units resulting great resentment amongst the Prospective Investors as it is unjustified to ignore MSME Sector while allotment of Land in the Developed Industrial Areas in which Land allotted to only Large Scale Units having the requirement of above 200 Kanal Land of Kathua District whereas no Land allotment Committee Meeting was held in 2023-24 and 2024-25 for the allotment of Land to MSME Units in Jammu Province.

It is pertinent to mention here that on the basis of actual permissible investment allowed by the JK UT Industries Department in the plant & machinery to those units who have already started the Production under the NCSS-2021 Scheme, the difference in the proposed investment and actual investment is approximately around 20 to 25% as a deviation for which the request is pending with the DPIIT and if approved a surplus amount of approx. Rs. 7000 to 8000 Crores will be utilized for the grant of registration to the majority of units that have applied online as on 30-09-2024, within the budgetary allocation of Rs. 28400 crores + 15%, equal to Rs. 32660 Crores.

It is worthwhile to mention here that uncertainty prevails in the mind of approximately. 579 Industrial Units of Prospective Investors with the majority of MSME Existing Units working since last 20 years and applied for the setting up of new Units or under Substantial Expension to meet the stiff competition with the New Units, and out of which 205 Units with majority of the Local Prospective Investors also includes the Units under Substantial Expansion, who has applied on the NCSS Portal well in time for the grant of Registration before 30-09-2024 under the Budgetary allocation of Rs. 28400 Crores with the provision of 115% of the approved Funds as per Notification and still awaiting for the grant of Registration under the NCSS-2021 Scheme to avail the benefits as they have invested thousand Crores of Rupees to create the Infrastructure and already purchased Plant & machinery and number of units already started the production awaiting grant of Registration under the NCSS-2021 Scheme by Directorate of Industries and Commerce Jammu/ Srinagar. In respect of balance 374 Units who also applied Off Line after 30-09-2024 and their Applications has been duly acknowledged by the Industries Department but not completed the Documents before 30-09-2024 due to certain reasons like non Registration of Lease Deed by J&K SIDCO and SICOP for the allotted land as Lease deed is not registered due to non availability of Developed Land in Notified Industrial Areas /Change of Land Use / pending grant of Consent to Establish by  JKPCC before 30-09-2024  also awaiting for the grant of Registration with the total amount of Investment in tune of Rs. 17336 Crores out of which 12117 Crores for the Investment in Plant & machinery and Employment to approx. 54000 Local Youths awaiting for the grant of Fiscal Incentives to 579  Units is pending with the Industries & Commerce Department, J&K UT  for which Sh. Manoj Sinha, Hon’ble Lt. Governor of JKUT already taken up the matter with the Govt. of India for the grant of an additional grant to accommodate the 579 Units.

Further, all is not well that, as on date no State Fiscal Incentives like Capital Investment Subsidy/Interest Subvention and other benefits available under the State Industrial Policy, for which the approval of the New State Industrial Policy and Warehousing Policy is pending with the State Government since long for the grant of approval by the Sh. Manoj Sinha, Hon’ble Lt. Governor of JKUT.

It is the need of the hour that with the grant of relief to leftover 579 units by the enhancement of budgetary allocation under the NCSS-2021 Scheme, it will create employment opportunities to lacs of local people, which was the main aim after the abrogation of Article 370, to generate employment in J&K for the local youth, which is a dream project of Hon’ble Prime Minister Sh. Narendra Modi.

We request Sh. Narendra Modi, Hon’ble Prime Minister, Sh. Amit Shah, Hon’ble Home Minister, Shri Piyush Goyal, Hon’ble Minister of Commerce and Industry, Sh. Manoj Sinha, Hon’ble Lieutenant Governor, Jenab Omar Abdullah, Hon’ble Chief Minister with the enhancement in the Budgetary allocation to provide Fiscal Incentives to 700 Units as per the following suggestions:-

1. 1. First preference should be given to the Local working Industries who already done substantial expansion or has created requisite infrastructure for the establishment of new unit, awaiting for approval to start production & applied for registration up to 30-09-2024 for the grant of Gross GST & other fiscal incentives.
   2. Second preference should be given to those existing units as on 2021 whose Package of incentives stands expired in 2026 under previous packages & now they are awaiting the grant of registration enabling them to start the activities under substantial expansion or to establish new Units with the grant of gross GST & other fiscal incentives & applied for registration up to 30-09-2024 under NCSS 2021 scheme.

3. Third preference should be given to existing units that have applied for the grant of registration to avail fiscal incentive under Substantial Expansion & New Offline after 30-09-2024.

We also request Sh. Manoj Sinha, Hon’ble Lieutenant Governor, for the issuance of the J&K UT Industrial Policy and Warehousing Policy as early as possible to provide relief to existing working units that opt for a change in the line of activity to a warehouse under the proposed warehousing policy.