SRINAGAR: Ahead of Prime Minister Narendra Modi’s forthcoming visit to Kashmir, the Federation of Chambers of Industries Kashmir (FCIK) has appealed for his focus on the struggling industrial sector in Jammu and Kashmir.
In a statement, the FCIK advocated for rejuvenation through a comprehensive approach, starting with what they term as triple-therapy, followed by additional measures. The triple-therapy entails allocating 25 percent of funds from the Central Industrial Scheme to support existing industries, significant procurement of specific industrial goods from local industries as per the Public Procurement Policy, and the establishment of a well-structured mechanism to facilitate hassle-free credit flow and banking services to MSMEs.
While praising PM Modi’s vision for industrial development in Jammu and Kashmir, with his approval for an incentive scheme of 28400 Crores in 2021, the chamber observed that expenditure under the scheme would occur only after the establishment of new enterprises on the ground.
“FCIK solicits the approval of the Hon’ble Prime Minister for earmarking 25% of CIDS-2021 for around 40000 existing industrial units towards their revival, rehabilitation, diversification, expansion, scaling up, modernization, and up-gradation. The allocated sum could be utilised for incentives provided under the CIS, besides funding the incentives provided under UT government schemes and policies, including those for the revival of sick units, turnover incentives, GST reimbursement,” reads the statement.
The FCIK expressed confidence that upon rejuvenation, the existing units have the potential to bounce back with renewed vigour and energy, contributing to the economic development and employment generation of JK in line with the vision and efforts of the Prime Minister Modi.
“The new initiative would pave the way for optimum capacity utilisation of the existing units, which presently do not even surpass the break-even point,” stated FCIK.
FCIK invited the Prime Minister’s attention to the fact that most local manufacturers and processors have been rendered jobless after the UT government directed its subordinate departments and Public Sector Undertakings to make purchases through the GeM portal. “Here, local units are unable to compete with counterparts from industrially advanced states for various reasons. FCIK also advocates encouragement and incentives for units seeking to meet demand outside the region.”
Inviting the attention of the Prime Minister towards sluggish credit flow and the reluctance of banks to fund industrial units under approved schemes, including the Credit Guarantee Trust Scheme for Micro, Small, and Medium Enterprises (CGTMSE), the industrial body urged for a foolproof structured mechanism for ensuring and monitoring smooth credit flow to MSMEs of Jammu and Kashmir under all available schemes.
