SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) on Friday urged the Parliamentary Standing Committee on Industry to recommend a single, comprehensive and adequately funded industrial policy framework for Jammu and Kashmir to ensure parity in incentives for all categories of industrial enterprises in the Union Territory.
The demand was raised during a high-level meeting of the Parliamentary Standing Committee on Industry held in Srinagar under the chairmanship of Tiruchi Siva.
The meeting was attended by 22 Members of Parliament from the Rajya Sabha, Chief Secretary Atal Dulloo, Additional Development Commissioner MSME Praveen Kumar, Managing Director and CEO of JK Bank Amitava Chatterjee, Commissioner Secretary Industries and Commerce Vikramjit Singh, senior representatives of SIDBI, Canara Bank, Punjab National Bank, Bank of Baroda, Bank of Maharashtra and other officials.
An FCIK delegation led by Shahid Kamili submitted a detailed memorandum highlighting structural, financial and policy challenges confronting industries and MSMEs in Jammu and Kashmir.
The Federation expressed concern over what it described as a growing imbalance after closure of registrations under the New Central Sector Scheme (NCSS-2021). It said industrial units already registered under the scheme would continue to receive incentives up to 2037, while existing units, revival cases and future investors outside the scheme had been left at a “severe competitive disadvantage” despite operating under similar regional and economic constraints.
FCIK urged the Committee to recommend adequate Central funding for the forthcoming Union Territory Industrial Policy so that incentives could be extended to existing, revived, expanding and prospective industrial units on “broadly comparable lines” with those available under NCSS.
The Federation said sustainable industrialisation could not be achieved by “creating two unequal classes of enterprises” in Jammu and Kashmir, asserting that all industrial units faced identical disadvantages relating to geography, logistics, instability and limited market access.
It also sought a comprehensive revival and rehabilitation package for sick and stressed industrial units and proposed creation of a dedicated revival corpus for modernization, rehabilitation and expansion of MSMEs across Jammu and Kashmir.
FCIK highlighted marketing and procurement challenges faced by local MSMEs following withdrawal of traditional procurement protections and increasing centralisation of procurement through the Government e-Marketplace (GeM). The Federation demanded restoration of institutional procurement support, particularly through Central PSUs and agencies, along with stronger implementation of local procurement mechanisms.
The issue of delayed payments to MSMEs by government departments and public agencies was also raised. FCIK sought strict enforcement of provisions of the MSMED Act and establishment of automatic and binding payment enforcement mechanisms.
On credit flow, the Federation urged banks and financial institutions to adopt a region-sensitive lending framework for Jammu and Kashmir and advocated collateral-free financing for entrepreneurs under CGTMSE and other Government of India schemes.
FCIK stated that despite government guarantee cover available under CGTMSE, banks continued to insist on heavy collateral security, discouraging first-generation entrepreneurs.
According to the Federation, members of the Parliamentary Standing Committee acknowledged the difficulties faced by MSMEs in Jammu and Kashmir and assured support for resolution of the issues raised.
The Committee also took note of the fact that the contribution of industry to Jammu and Kashmir’s Gross State Domestic Product remains around 19 percent, compared to nearly 30 percent contribution of industry to the national GDP, observing that the disparity warranted focused policy intervention and special measures for industrial growth in the Union Territory.
During the meeting, Chief Secretary Atal Dulloo informed the Committee that the new industrial policy for Jammu and Kashmir was expected to be finalised within the next two to three months after consultations with stakeholders.
Managing Director and CEO of JK Bank Amitava Chatterjee, assisted by senior bank officials, also made a presentation on credit flow and assured continued support to the industrial sector in Jammu and Kashmir.
Representatives of other banks also expressed willingness to enhance institutional credit flow for industrial development in the Union Territory.
The vote of thanks was presented by Commissioner Secretary Industries and Commerce Vikramjit Singh.
