The recent executive committee meeting of the Bari Brahmana Industries Association brought to light a significant issue that threatens the industrial landscape of J&K. The partial disbursement of turnover incentives for the financial year 2021-22 by the Industries Department has caused considerable discontent among the industrial units in the region, as merely 8 to 10 percent have been released against the claims of Rs 176 crore. This disparity is alarming and demands immediate rectification. The BBIA members have highlighted a critical concern: only around Rs 14 crores have been disbursed out of the allocated Rs 50 crores, leaving a significant Rs 36 crores either unallocated or diverted elsewhere by the Industries Department. This alleged diversion not only undermines the financial health of the industrial units but also raises questions about the transparency and efficiency of the incentive disbursement process.
Industrial units at J&K already operate under challenging conditions. Limited market avenues, locational disadvantages, higher costs of raw materials, and fierce competition from neighbouring states create an environment where sustaining operations is difficult. The withdrawal of budgetary support under SRO No. 431 for turnover incentives, as stipulated in the Industrial Policy 2021, exacerbates these difficulties. The impact is profound, with an estimated setback of approximately Rs 150 crore to existing units, many of which have been pillars of the local economy for decades. These units provide direct and indirect employment to around four lakh people, making their survival crucial for the socio-economic stability of the region. This matter has been pending for quite some time. The delay and partial disbursement of turnover incentives undermine the confidence of industrialists and entrepreneurs. It sends the wrong message to potential investors. For a state striving to attract investment and boost industrial growth, such actions are counterproductive. Transparency in the disbursement process and a clear timeline for releasing the remaining funds are essential to restoring faith among industrial units. UT’s industrial sector is at a critical juncture. Ensuring equitable and timely support from the Government is vital for its sustenance and growth.
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