SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has expressed strong concern over what it sees as continued discrimination against local enterprises in the implementation of the New Central Sector Scheme (NCSS).
During an interaction with the Department-Related Parliamentary Standing Committee on Commerce, chaired by Dola Sen, FCIK said nearly 300 industrial units that had started production over the past two to three years were being denied incentives on the grounds of fund exhaustion. The Chamber argued that the practice of keeping funds reserved for projects still on paper, while operational units struggle without support, was both unfair and discouraging for local entrepreneurs.
FCIK suggested that incentives under NCSS be granted strictly on a first-come, first-serve basis to restore confidence among existing enterprises and to counter what it described as a growing perception that the scheme favoured outside investors and big players at the cost of local industry.
The Chamber also pressed for policy measures requiring Central Public Sector Undertakings executing projects in Jammu and Kashmir to procure at least 25 per cent of their requirements from local micro, small and medium enterprises. According to FCIK, such a step would generate employment, strengthen local capacities and ensure that public investments made in the Union Territory translated into tangible regional benefits.
Concerns over the revival of sick industrial units were also raised, with FCIK pointing out the absence of a dedicated policy or financial framework for distressed enterprises. It demanded the creation of a corpus fund and a comprehensive One Time Settlement scheme to allow sick units a fair chance of recovery.
The Chamber further highlighted the issue of low credit flow to industry, noting that apart from Jammu and Kashmir Bank, other financial institutions were falling short in supporting entrepreneurs.
Despite repeated government assurances of “Ease of Doing Business,” FCIK maintained that entrepreneurs continued to face hurdles at almost every stage, including registrations, approvals, taxation, financing and changes in ownership. Standing orders intended to simplify processes were rarely implemented in practice, creating delays, uncertainty and additional costs that undermined business confidence.
The body stressed the need for a robust industrial policy tailored to both existing and upcoming units, saying that a comprehensive framework was essential for balanced and sustainable industrialisation in the region.
The Parliamentary Standing Committee on Commerce is currently on a three-day study visit to Jammu and Kashmir. Its members include Renuka Chowdhary, Sadanand Mahalu Shet Tanavade, Rosey Sailo Damodaran, Sunil Tripathi, Vijay S. Raja Shekhar, Prasun Banerjee, Yousuf Pathan, Prashant Yadaorao, Ramesh Awasti, Santosh Panday and Shiv Pal Singh, among others.
