SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has hailed the Jammu and Kashmir government’s unveiling of the Draft Procurement Preference Policy for Micro and Small Enterprises (MSEs), describing it as a transformative move for the region’s struggling industrial sector. Terming it the “first gift” from the new Omar Abdullah-led government, the FCIK sees this initiative as a significant step towards revitalising local industries.
In its statement, FCIK highlighted that the policy, coming after more than five years of exclusionary practices, has sparked renewed optimism among local industrialists. “We are extremely thankful to Chief Minister Omar Abdullah for his visionary leadership and steadfast commitment to empowering local enterprises,” said FCIK President Shahid Kamili, adding that the policy underscores the government’s recognition of local industries’ role in fostering economic growth and employment.
The chamber also expressed gratitude to Deputy Chief Minister Surinder Kumar Choudhary, Chief Minister’s Advisor Nasir Aslam Wani, and Chief Secretary Attal Dulloo for their contributions to the policy. Notably, the provision mandating 30 per cent of government procurement from registered local MSEs has been welcomed as a potential game-changer for the region’s economy.
FCIK noted with satisfaction several provisions in the draft policy aimed at easing participation for local enterprises, such as:
Price Preferences: To ensure competitive opportunities for local units.
Procurement Quotas: Reserved portions of government contracts for MSEs.
Waivers on EMDs and Application Fees: Removing financial barriers to participation.
Relaxation of Turnover Requirements: Enabling smaller enterprises to compete for government contracts.
“These measures will allow local businesses to play a more significant role in the tendering process and directly contribute to the region’s economic recovery,” said Kamili.
Despite the positive developments, FCIK stressed the need for further refinements in the policy. The chamber emphasised the importance of addressing specific challenges faced by local manufacturing units, which form the backbone of the region’s industrial ecosystem.
To strengthen the impact of the policy, FCIK has proposed: Reworking Composite Civil Contracts: Advocating for the separation of industrial goods from service components in such contracts or allowing MSEs to participate in both aspects.
Equitable Distribution of Orders: Ensuring a fair allocation among all local tenderers after awarding 30 per cent to the lowest bidder.
The FCIK commended the government’s focus on transparency and quality assurance. Initiatives like vendor development programmes, emphasis on quality standards, and the introduction of a digital procurement dashboard are seen as steps towards enhancing local manufacturers’ competitiveness and accountability.
While applauding the government’s proactive approach, FCIK emphasised the need for continued collaboration to further refine the draft policy. The chamber remains optimistic that these efforts will result in a framework that maximises benefits for local industries.
“Once implemented, the policy is poised to empower local MSEs, laying the foundation for sustainable industrial growth in Jammu and Kashmir. This marks the beginning of a new era of self-reliance and economic prosperity for the region,” said Kamili.
The chamber is also exploring additional avenues to provide marketing support to local units, ensuring long-term growth and resilience for the industrial sector in Jammu and Kashmir.
