In terms of industrial growth, our State is behind many other States. Physical geography of this Himalayan State coupled with poor planning has contributed to hampering of industrial growth. This notwithstanding, State leadership has usually spoken about the need of fuller industrialization of the state as the viable means of providing employment to the educated unemployed and non-skilled workers and labourers.
By and large, the Central Government has been showing good understanding of the constraints of our State in the area of industrialization and has been extending necessary and possible support and concessions to our industrialists. The Centre takes a holistic view of many problems of hilly states. As such J&K, Himachal and Uttarakhand are clubbed together for becoming entitled to receive Special Package under Transport Subsidy Scheme.
However, despite the congenial atmosphere that has prevailed at the level of the Centre in regard to Transport Subsidy Scheme, the package for the three hilly states under Transport Subsidy Scheme. now called by the renewed name of Freight Subsidy Scheme – 2013 have slumped from rupees 1,135 crore in 2015-16 to just rupees 70 crores for the year 2016-17 in respect of three hilly States of J&K, Himachal and Uttarakhand. What is the purport of transport subsidy scheme, let u s try to understand? This scheme is applicable to three hilly States mentioned above. Road accessibility and transport in these hilly states are not smooth. Transportation charges of the raw material as well as the finished product from and to the rail head in Jammu are heavy which the small industrialists are usually unable to pay. This part of their commercial activity used to be subsidized by the Government and the subsidy was to the tune of 90 per cent of the actual expenditures incurred. The benefit of this policy did not reach only the industrialists but mostly to the consumers because it meant enabling the industrialists to face the fierce competition with other producers and suppliers. There was also the special package besides the Transport Subsidy Scheme that went to the benefit of the three hilly states including Jammu and Kashmir.
Now the situation is that with drastically reduced subsidy in transportation, serious challenge is to be met by the industrialists. They will not be able to compete with other industrialists to whom transportation of goods is much less expensive. We are apprehensive that the existing industrialists who were the beneficiaries of the scheme may not be able to sustain their business. This is how industry in the State is going to receive a big shock. This decision of the Government is going to adversely affect thousands of families in the State.
We can suggest that the industrialist have a genuine case and they should plead their case carefully and with right persons at right quarters. They should meet with State authorities and also concerned ministry in New Delhi and put forth their case in national perspective. The Government has to play positive role and should throw its weight behind the demands of the industrialist. Significantly the Parliamentary Standing Committee, headed by Chandan Mitra, too has taken a serious note of the decision of the Government to reduce subsidy drastically and has highlighted the undesirable impact it will have on the industrial climate in these States. This is a case which ought to be taken up with the Finance and other Ministries at the Centre. There is good deal of official propaganda for youth to begin small scale entrepreneurship by way of self employment. We expect the Government to continue support to them and not starve them half-way.
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