SRINAGAR: Leaders of the industrial fraternity expressed their belief that the existing industry in Jammu and Kashmir has the potential to address 50 percent of unemployment and improve economic parameters, including GDP contribution, within just one year. They emphasized the need for concrete policy interventions by the government to address the industry’s current challenges.
The statements were made during an interactive session on the “Status and Potential of Existing Industry” organized by the Association of Integrated Textile and Handicrafts Park Zakura (AITHP). The event saw the participation of Commissioner cum Secretary I&C Vikramjeet Singh, Director Handicrafts and I&C Kashmir Mehmood Shah, General Manager DIC Srinagar Hamida Akhter, General Manager SICOP Waseem Ahmad, AD MSME Suhail Allaqaband, officers from J&K Trade Promotion Organisation, I&C, SICOP, as well as industry leaders from FCIK, including Shahid Kamili, Shakeel Qalander, M. Ashraf Mir, Afaq Qadiri, Syed Fazal Illahi, Mohammad Rafique, Yasir Shams, and members of AITHP.
During the session, concerns were raised about the poor state of the existing industry, with approximately 80 percent of the units either closed or operating at minimal capacities with revenues below the break-even point.
Former President of FCIK, Mohammad Ashraf Mir, highlighted the challenges faced by the units due to drastic changes in the industrial policy since 2019, which adversely affected their viability. He mentioned the withdrawal of government marketing support and incentives granted under the 2016 industrial policy, which aimed to compensate local manufacturers for additional costs incurred due to factors like their location, communication challenges, harsh weather conditions, and high labor costs.
He also warned about the rising bad loans, projecting that if the current trend continues, 90% of the industrial units’ bank accounts will become non-performing assets (NPAs) within the next year. However, he expressed optimism that with suitable policy interventions, adherence to the provisions of the 2016 policy, and extension of the Central Incentive Scheme of 2021 to the existing industry, the situation could be turned around, leading to improvements in all economic parameters and GDP. He further stated that the rejuvenated industry could absorb 50% of the unemployed youth by leveraging existing infrastructure to meet new challenges.
President of AITHP, Syed Afaq Qadiri, supported Ashraf Mir’s views and presented an overview of infrastructure deficiencies in the estate, including the need for compound walling, drainage systems, effluent treatment plants, and road macadamization. He requested that the entire estate be declared a Green estate and exempted from certifications by the Pollution Control Board. He also called for the conversion of leasehold plots into freehold industrial plots.
Commissioner cum Secretary Vikramjeet Singh assured the unit holders of resolving their genuine issues. He issued on-the-spot instructions to I&C and SICOP officers to address incomplete works and maintain the estate. Singh mentioned his plan to visit various industrial estates in the valley and work with the apex industrial organization to develop necessary policy interventions for further discussion with relevant authorities.
Director Handicrafts and I&C Mehmood Shah commended the commitment of the incumbent Commissioner and highlighted his prompt initiative to visit industrial estates and other departmental wings to assess the ground situation.
AD MSME Suhail Allaqaband provided an overview of the schemes available from the Ministry of MSME, and Vice President of AITHP Yasir Shams delivered the vote of thanks.
