SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) is seeking Chief Minister Omar Abdullah’s intervention to address the exclusion of local electrical equipment manufacturers from critical power sector projects in Jammu and Kashmir. In a recent meeting, former FCIK President Mukhtar Yousuf highlighted the dire situation faced by over 150 local manufacturers, who have encountered significant operational challenges following recent procurement policy changes by the Power Development Department (PDD).
These changes have rendered local units nearly without work, threatening their survival. The Union Power Ministry has allocated Rs 5,200 crore to the region under the Revamped Distribution Sector Scheme (RDSS), aimed at enhancing power infrastructure, including new 33KV and 11KV stations to improve supply reliability and reduce losses. However, the shift from a central store procurement process to a turn-key project model has severely limited access for local manufacturers, creating obstacles in securing contracts.
Secretary Finance FCIK Mohammad Altaf explained that the previous system ensured rigorous third-party testing before procurement, while the new model combines supply and installation, undermining quality standards and sidelining local producers. The PDD has also combined project requirements across large areas, leading to cost estimates beyond the financial capacities of individual manufacturers.
During the meeting, Yousuf presented the Chief Minister with three recent high-value tender notices from the Kashmir Power Development Corporation Limited (KPDCL), totaling Rs 64.89 crore. These tenders, which include projects for electrifying unconnected households and establishing substations, impose stringent financial and turnover requirements that local firms cannot meet.
FCIK President Shahid Kamili urged the Chief Minister to consider breaking these large tenders into smaller segments or relaxing the qualification criteria to allow local manufacturers a fair chance to participate. Alternatively, he suggested empowering the Small Scale Industries Development Corporation (SICOP) to bid on behalf of local units, ensuring equitable contract distribution.
Kamili expressed concern over a growing trend to exclude local enterprises from developmental projects, which has undermined the confidence of local entrepreneurs. In response, the Chief Minister assured FCIK that efforts would be made to ensure local industrial units receive equitable access to public procurement opportunities.
