SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has urged the Jammu & Kashmir government to introduce amnesty measures for micro, small, and medium enterprises (MSMEs), calling for a “clean slate” in power dues, tax liabilities, loan settlements, and regulatory matters. The demand, directed at Chief Minister Omar Abdullah and Deputy Chief Minister Surinder Kumar Chowdhary, aims to restore confidence in the industrial sector and facilitate sustainable growth.
FCIK President Shahid Kamili emphasised that such amnesties would serve as a crucial confidence-building measure (CBM), assuring industrialists that the government is committed to their revival. “The optimism generated by the new government must be swiftly translated into action to prevent further disillusionment among industrialists,” Kamili stated.
The Federation highlighted that industrial units have suffered from policy exclusions for years, leading to financial distress and declining trust in government initiatives. While recent policy announcements in the Legislative Assembly, including increased reservations in public procurement and stakeholder engagement, have generated optimism, FCIK stressed that tangible action must follow.
One of the primary concerns raised by the body is the accumulated power dues, worsened by disruptions caused by administrative reorganisation and the COVID-19 pandemic. Many units, despite minimal electricity usage during this period, are burdened with high demand charges and interest on unpaid bills. FCIK has proposed a full waiver of demand charges and interest, with outstanding dues payable in 24 monthly instalments alongside current bills.
Additionally, the Federation has called for relief on outstanding VAT liabilities, arguing that many businesses were previously exempt under the VAT remission mechanism. It has urged the government to uphold past commitments and ensure that MSMEs are not unfairly penalised during the transition to the GST regime.
FCIK has also demanded a resolution for longstanding land lease disputes affecting older industrial units, seeking a one-time regularisation scheme to provide legal stability. Furthermore, the body has called for a non-discretionary, non-discriminatory One-Time Settlement (OTS) Scheme through J&K Bank, requesting government intervention to devise a relief plan for struggling industrial borrowers.
