* KCCI, JCCI term it as welcome step for growth of industry
Excelsior Correspondent
JAMMU, Dec 22: Reacting sharply over the Central Industrial Package announced for the J&K state on Friday, Bari Brahmana Industries Association (BBIA) and Association of Industries, Gangyal (Jammu) have termed it as just an eye-wash while the Kashmir Chamber of Commerce and Industry (KCCI) and Jammu Chamber have described it as welcome step for the further growth of the Industry in the State.
Bari Brahmana Industries Association led by Lalit Mahajan while appreciating the sincere efforts of the Governor’s Administration for taking up the issue on the request of the BBIA and other organizations with the Centre, but regretted that this package was merely for the new units and no relief has been provided to the old units and the units under substantial expansion.
While going through the validity of the incentives under package, BBIA members in an emergency meeting held here today pointed out that the Scheme is valid up to March 31, 2020. Now, hardly 15 months are left for this package and normally it takes at least one year or even more to raise a new unit and start production.
The members alleged that Department of Industrial Policy and Promotion, Govt of India, has betrayed the Industrial sector of J&K for not granting the fiscal incentives like Income Tax re-imbursement, GST re-imbursement and other incentives to the existing units and the units under substantial expansion, resulting unhealthy competition amongst the units working prior to June 15, 2017 and the units to be established under the new scheme.
Referring to fright subsidy incentives, BBIA mentioned that there is very limited scope for the dispatch of goods by rail due to non- availability of Inland Container Depot and requisite infrastructure with the Railways to send the material by rail and non- availability of transport of finished goods to other parts of the country by water ways. They urged upon the Governor to take up the matter urgently with the Prime Minister and Union Finance Minister.
Executive Committee of Association of Industries, Gangyal, Jammu while reacting to the Central Industrial package termed the entire proposed package just an eye-wash and joke with the Industrial sector of the State. Rattan Dogra, president of the Association and other members expressed that the entire package as projected in the media appears to be `promotional package’ to attract new industry from outside the State which may or may not prefer to establish their new units in the State, considering the lack of fiscal incentives from State Government, geographical disadvantages and lack of proper developed infrastructure conducive for establishment for new industry.
They said similar type of incentives as envisaged in the media reporting providing various fiscal incentives equivalent to capital investments are provided even by highly industrially developed states including Gujarat, Maharashtra, Karnataka, Tamil Nadu, Haryana etc. from their own State resources.
The proposed package limits the provisions of Central fiscal incentives only for five years as if to limit their total physical contribution within 05 years and that too, within the limits of their capital investments which we think will not attract any fresh investment from outside the State. The proposed package primarily envisages the availability of package till 31-03-2020 only. Entrepreneurs taking into consideration past experience, feel that even the highly organized and efficient entrepreneurs may find it difficult to conceive, finalize and materialize their units within this shorter span of time thus forcing the prospective entrepreneurs to desist from making huge investments in the State.
Moreover, the package does not contain any attraction for existing local Small / Micro units who are already suffering due to denial of State fiscal incentives which AOI has continuously been demanding. It has no apparent attraction for prospective new units. Entrepreneurs felt that package is neither beneficial for survival of existing industry nor attractive for new industries. Hence, package as announced cannot be useful for development of industrial sector in the State. AoI sought Governor’s intervention into the matter.
Meanwhile, Kashmir Chamber of Commerce and Industry (KCCI) welcomed the extension of Central Industrial Package to the State and said that the announcement was an important step for attracting investment in the Industrial sector and boosting local industrial growth.
Sheikh Ashiq Ahmed, president KCCI said that they had been demanding extension of this package to the State, coupled with other meaningful interventions by the Govt so that local industry would have some advantages of marketing and promotion of their products. He extended gratitude to the Governor, his Advisor KK Sharma and the Chief Secretary BVR Subramanyam for their sustained efforts.
Jammu Chamber of Commerce and Industry (JCCI), led by Rakesh Gupta while extending thanks to the Governor’s Administration and the Union Government for extending Industrial package to the J&K state, hoped that it will help in attracting industry from out side the State. Gupta said excluding old existing units from the package is not a good move and the Central Government must reconsider its decision. He said that JCCI will go into the detailed notification and come out with some more suggestions in a day or two.
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