Excelsior Correspondent
JAMMU, Jan 21: While lauding the initiative of the Government to hold Curtain Raiser Investors Meet at New Delhi on January 20, Bari Brahmana Industries Association (BBIA) regretted ignoring the local industrialists from J&K UT.
A meeting of members of the BBIA was held today under the chairmanship of Lalit Mahajan in the presence of Tarun Singla, senior vice president, Ajay Langer vice president, Viraaj Malhotra general secretary and others, the members discussed the issues pertaining to Investors’ Meet. They regretted the rejection of the local unit holders from J&K and hoped that in next meet they will also be considered.
While welcoming the initiative taken by Industry Department for holding the first ever Curtain Raiser Investor Meet at New Delhi on Monday, the BBIA termed it as a step toward to hold an Investor’s Meet in the month of April 2020, a vision of Prime Minister Narenda Modi for rapid Industrialization in Union Territory of Jammu & Kashmir.
They said J&K is a landlocked region with the limited marketing avenues, hostile conditions since last 30 years, surrounded by China & Pakistan and keeping it in mind the above facts Govt of India supported Jammu and Kashmir to accelerate Industrial development and created an environment for Industrial development by improving availability of capital and increase market access to provide a fillip to the private investment and accordingly to Jammu & Kashmir New Industrial Policy granted Package of Incentives in 2002 which was further extended for the period 15-06-2012 to 14-06-2017 and 15-06-2017 to 31-03-2022 due to which Jammu and Kashmir divisions have together added (registered) more than 25804 units with a total initial investment of above Rs 3936 crores. The employment generation is close to 1,65,688, direct employment with the addition of indirect employment, the total figure touched approximately 4 lakhs in private sector, which is equivalent to State Govt employees till the adoption of GST by the J & K.
BBIA pointed out that during 2017-18 209 new units came into existence, during 2018-19 just 141 while during 2019-20 up to Oct 2019, 92 new units were made operational in J&K. This shows the sharp fall in investment in industrial sector. The employment also fell from 2641 to 1439 during last three years.
Presently number of units working on the basis of interstate sale are in the process of closing down in near future due to dilution of Package post GST Regime and Sunset Clause to avail the Incentives and if the immediate relief was not provided in the shape of Fiscal Incentives by State/Central Govt, they may vanish.
Further it was resolved that while endorsing the decision taken by Govt of India under the leadership of Narendra Modi in the Interest of nation under “One Nation One Tax” slogan on removal of Toll Posts across the J&K, the attention of Lt. Governor is invited that after abolishing the Toll Tax, it is need of the hour to provide additional Fiscal Incentive to existing industry which is suffering very badly due to flooding of goods from outside the State after the removal of Toll Post across the State, resulting sharp decline in the production of the Industrial goods being manufactured by the local units as the major sufferers are the manufacturers of steel products, cement, packaging materials, flour mills and other products and it is the need of the hour to provide financial supports to Industrial units suffered due to abolition of Toll Tax.
They demanded reimbursement of 100% CGST/SGST to existing units, units under substantial expansion & new units; 2% on the Intra-State sale value of goods to existing units, unit under substantial expansion and new ones; 100% reimbursement of freight by road on the import of raw materials by units and marketing support with the 2% reimbursement of invoice value in lieu of CST prior to GST for Interstate sale to all the existing units besides comprehensive Central package of fiscal incentives.
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