‘Neglect of J&K industry by Union Govt’
Excelsior Correspondent
JAMMU, July 29: Alleging neglect of J&K Industry, Bari Brahmana Industries Association has demanded equitable budget for the Union Territory of Jammu and Kashmir.
A brainstorming session was held at the BBIA Bhawan under the leadership of Tarun Singla, senior vice president of BBIA, where the 2024 Budget for the existing industry was discussed in detail. The outcome of the discussion was not satisfactory for the survival of existing industries. The attitude of the Government towards these industries reflects a lack of seriousness and commitment. Despite their significant contributions, these industries are being sidelined in favor of new investments, creating a stark disparity in support and resources.
The members alleged that the Government of India’s allocation of only Rs 48 crore for existing industries is a glaring example of this neglect. The existing industries in Jammu and Kashmir, with investments totaling approximately Rs 30,000 crore and current valuations exceeding Rs 50,000 crore, are facing a severe crisis due to inadequate budget allocations. The Government’s lack of serious commitment to these industries is jeopardizing their growth and sustainability.
The BBIA pointed out that for an industrial base valued at Rs. 50,000 crore, the existing industries are receiving a package of Rs 450 crore as SGST refunds and a meager Rs 25 crore as turnover incentives. This allocation is grossly insufficient to support the growth and sustainability of these industries.
In contrast, the new Industrial Policy is significantly more generous. The Government is providing approximately Rs 2,840 crore per year for new industries, targeting an investment of Rs 20,000 crore. This creates a disparity that is not only unjust but also detrimental to the existing industries that have weathered the region’s most challenging economic conditions.
The members said the inadequate support for existing industries will have far-reaching consequences including financial strain, job losses, economic instability and unfair competition.
The Government must recognize the critical role that existing industries play in the economic fabric of Jammu and Kashmir. Providing only Rs. 48 crore in budget allocations for these industries is not only insufficient but also a signal of neglect. It must substantially increase the financial incentives and support packages for existing industries, aligning them more closely with those provided to new industries.
Prominent members- SK Bansal, Annil Suri, Davinder Mahajan, Ravneesh Gulati, Raj Dua also spoke on the occasion.
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