FCIK Demands For Consolidation Of Existing Industrial Base

SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has urged the central government to consolidate the existing industrial base in Jammu and Kashmir and its ambitious expansion plans for industrial development under the “New Central Sector Scheme” (NCSS) launched in 2021 with an outlay of 28400 Crores over a period of time.

This was conveyed by FCIK representatives to the Director of the Department for Promotion of Industry and Internal Trade (DPIIT), Dr Kajal, and her team of officers in a meeting held at Sanat Ghar Srinagar. The FCIK was led by members of the Advisory Committee, Shakeel Qalander and Mohammad Ashraf Mir, with the participation of presidents of various industrial estates, including Lassipora, Khunmoh, Rangreth, Zainakote, Shalteng, Sanat Nagar, Baghi Ali Mardan Khan, Zakura, Ganderbal, Silk Park Zakura, and other constituents.

FCIK representatives conveyed that the desired transformation in industrial development could only take place by following the principles of natural growth, which envisages the consolidation of the existing industrial base before spreading out for expansion. While hailing the NCSS for enhanced industrial development, they said that the plan also required a change in the working atmosphere and system to facilitate existing and prospective entrepreneurs with flawless services.

Recalling the central industrial scheme of 2002 launched by the then Prime Minister, Atal Bihari Vajpayee, the FCIK representatives regretted that the scheme could not bring any substantial change owing to inherent deficiencies. They said that the whole scheme, spread over more than a decade, could only attract investment of about 3000 crores, mostly in two districts of 22 districts of the erstwhile state of J&K. They said that NCSS-2021 may, God forbid, meet the same fate if the problems of existing enterprises were not addressed to boost existing and prospective investor’s confidence. They informed the visiting team that a whole lot of existing units were presently in complete distress and working on meager capacities much below their break-even, apart from a large number of units that had already turned sick.

FCIK suggested DPIIT to earmark a sum of 10000 Crores out of 28400 Crores under NCSS, which could be utilized for incentivizing existing industrial units on revival and rehabilitation of sick units, diversification, modernization, and expansion programs. This initiative could not only save thousands of crores of investment made in existing infrastructure but could also establish a strong foundation for desired expansion plans, said FCIK members, adding that re-enforcing of existing units had the potential of generating one million jobs in a short run.

FCIK members expressed their dismay over the non-seriousness of the local administration towards the plight of existing industry and said that the role and functionaries of the industries department required complete reformation and revamp.

FCIK also complained to DPIIT of withholding a corpus fund of 100 Crores along with some other grants approved in 1999 by the then Prime Minister on the recommendations of Task Force on MSMEs. The FCIK representatives said that J&K badly needed such a corpus with appropriate enhancement.

The Presidents and other members also registered their complaints regarding the difficulties faced by enterprises in availing incentives under NCSS-2021 and suggested changes in rules and regulations.

Dr Kajal in her response assured FCIK team to revisit provisions of guidelines for the incentive scheme in order to benefit unit holders. She said that the team was dumbfounded to know about the ground realities about existing industry. She assured to take up the matter with her high ups in the department and in turn with relevant quarters for finding a resolution to the problems brought in her notice. She asked FCIK to furnish a detailed note on all these issues with suggestions thereof. She also assured of having regular and frequent interaction with the stakeholders in future.