FCIK Urges For Removal Of Bottlenecks In Industrial Policy

SRINAGAR: The Federation of Chambers of Industries Kashmir has urged upon the Industries and Commerce Department to remove all bottlenecks that come in the way of implementation of industrial policy of 2021, which has been launched with an aim at creating conducive ecosystem for sustainable, equitable and balanced industrial development in Jammu and Kashmir.

In a statement, the apex industrial body regretted that procedural guidelines issued for applicability of many of the provisions of industrial policy were too complex and loaded with lots of unnecessary and time consuming formalities. The Industries and Commerce department, by asking for completion of such cumbersome formalities before affording any relief or incentive, was going reverse to its own claim of acting as ‘facilitator rather than regulator’ in the promotion of industries besides violating the policy of ‘Ease of Doing Business’, reads the statement.

The FCIK said that one such provision of the industrial policy related to change of constitution of units which has been made complex by a specific circular No. DI&C/Dev/Circular/2021/3050-64 dated 25th of November 2021 issued by Director of Industries and Commerce Kashmir in gross contravention to the industrial policy of 2021 and its approved guidelines. The said Circular directed the General Managers of all DICs in Kashmir valley to follow a sequence of multiple formalities before processing any case to the directorate for change in constitution of any unit. Ironically the said circular was claimed to have been issued for streamlining the process of change of constitution of industrial units which resulted in nobody being able to obtain approval  for desired change in constitution of his/her unit during past one year, reads the statement.

The statement further reads that immediately after issuance of the said circular, FCIK brought the matter to the notice of relevant authorities stressing for its withdrawal. The Chief Secretary, in a meeting with FCIK held on 16th of February, 2022, issued categorical and written directions to the Industries and Commerce department for allowing change in the constitution of industrial units strictly as per the existing industrial policy and norms.

“However, despite Chief Secretary’s directions 10 months back , the said circular has not been withdrawn till date resulting in great inconvenience to the industrial units. Even change of constitution within family members without addition of any outside partner has become cumbersome. In several cases, the legal heirs of deceased proprietors are being pushed from pillar to post for want of change in the constitution of their units” informed FCIK.

The FCIK has reiterated its demand for withdrawal of the controversial circular and in this connection has written to the Principal Secretary, who has recently taken charge of Industries and Commerce department requesting him to allow changes in constitution of the units after fulfillment of minimal entrepreneur-friendly formalities in consonance with the existing industrial policy and its guidelines.

“It is not out of place to mention here that no such circular has been issued by the Directorate of Industries and Commerce Jammu which makes it all the more necessary to be withdrawn in order to bring parity and equity in the matter between the two provinces of J&K,” concludes the statement.


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