SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has urged Chief Secretary Atal Dulloo to seek a review of the recent electricity tariff order issued by the Joint Electricity Regulatory Commission (JERC) for Jammu and Kashmir, besides seeking interim relief for industrial consumers until the matter is reconsidered.
A delegation of FCIK, led by Advisory Committee Head Shahid Kamili, met the Chief Secretary and raised concerns over the impact of higher electricity tariffs on an industrial sector already facing weak markets, industrial sickness, delayed payments and rising regulatory costs.
FCIK said the DISCOMs had sought an increase of around 5 per cent, but the tariff increase ultimately approved for industry was substantially higher and, according to the federation, was effected without adequate stakeholder consultation.
The federation argued that the additional power burden had come at a particularly difficult time for existing enterprises, which were already struggling with prolonged disruptions and adverse business conditions. It urged the government to consider the cumulative impact of these challenges before imposing further costs on industry.
The meeting was held on the advice of Chief Minister Omar Abdullah and followed FCIK’s recent interaction with him over the immediate problems confronting existing industrial units pending finalisation of the Revised Industrial Policy.
Besides electricity tariffs, the delegation discussed four other priority issues with the Chief Secretary: ease of doing business, public procurement, revival of sick and stressed industrial units, and availability of raw materials for mineral-based industries.
On ease of doing business, FCIK sought a trust-based regulatory framework built around self-certification, automatic renewals, deemed approvals, single-window clearances and greater digitisation. It also called for rationalisation of recurring permissions, fees and charges, arguing that routine regulatory processes should facilitate legitimate businesses rather than consume their time and resources.
On government procurement, the federation said several local manufacturing units established to supply government departments were facing a shortage of orders even as substantial procurement continued from outside Jammu and Kashmir.
FCIK maintained that local industry was not seeking higher prices or any relaxation in quality standards, but purchase preference at competitively discovered L1 rates. It proposed strengthening SICOP for identified locally manufactured products, introducing MSME-friendly tendering and separating industrial supplies from works contracts.
The federation also offered to provide examples of GeM tenders containing conditions that, it said, effectively disadvantaged otherwise capable local manufacturers.
The issue of industrial sickness was also discussed, with FCIK seeking the early announcement of power and other amnesties to help stressed units clear legacy liabilities.
The federation presented the Chief Secretary with a copy of the State Bank of India’s One-Time Settlement (OTS) Scheme of 2020 and sought a similar transparent and uniform settlement mechanism from banks operating in Jammu and Kashmir, particularly J&K Bank.
FCIK argued that J&K enterprises should be able to access relief at least comparable to that provided under the SBI scheme to borrowers elsewhere in the country, given the exceptionally difficult business conditions they have faced for more than three decades.
The federation also highlighted the acute shortage of raw materials affecting mineral-based industries, particularly Plaster of Paris processing and stone-crushing units. It attributed the problem to delays in finalising or renewing extraction arrangements and sought an immediate lawful interim mechanism for regulated supply.
FCIK cautioned that continued disruption in raw-material supplies could force industrial units to shut down, affecting employment as well as developmental works, particularly given Kashmir’s limited working season.
The discussions were held in a constructive atmosphere, according to FCIK. The Chief Secretary acknowledged the practical difficulties highlighted by the delegation and assured the federation that the issues would be examined on priority with the concerned departments and authorities.
He also assured FCIK of his support and facilitation in addressing the immediate problems confronting existing industrial units.
