Excelsior Correspondent
SRINAGAR, Aug 6: Chief Minister, Omar Abdullah today directed for early formulation of new industrial policy and its notification, so that it comes into force form the begining of the year 2015. He said that package for industrial backward areas should be incorporated as part of the new industrial policy and directed for early refund of VAT to the industrialists.
Omar Abdullah underlined the need for encouraging young local entrepreneurs to invest in the feasible industrial and handicrafts sectors promising greater economic prospects for them and huge employment opportunities for youth.
Chairing the 5th State Industrial Advisory Committee (SIAC) meeting here today, the Chief Minister said that incentives as provided under the State and the Central Industrial Policies should easily accrue to the local industrialists and budding entrepreneurs so that they could expand their industries and launch new ones. He said holistic industrial development is imperative for all round development of the State and generation of wide-ranging economic activities for both skilled and unskilled human resource.
The Chief Minister was given detailed account of the functioning of Industries and Commerce Department and the policy it is pursing to strengthen the sectors of industries and handicrafts in the State which are responsible for providing livelihood to more than five lakh people.
The meeting was attended by Minister of State for Industries and Commerce, Sajjad Ahmad Kitchloo, Chief Secretary, Mohammad Iqbal Khandey, Economic Advisor to Govt, Jaleel Ahmad Khan, Financial Commissioner Industries and Commerce, Khursheed Ahmad Ganai, Principal Secretaries, B. R. Sharma and B. B. Vyas, various Commissioner Secretaries, Administrative Secretaries, senior officers and representatives of trade and industries.
In a PowerPoint elaborative presentation the Financial Commissioner Industries and Commerce Khursheed Ahmad Ganai stated that a new Draft Industrial Policy has been formulated by the Committee constituted for the purpose taking care of all aspects of the growth and welfare of industries and handicrafts. He said the Draft Policy has been referred to Planning, Finance, Law and Parliamentary Affairs Department for observations and comments. He said that package for industrial backward areas would be considered as a part of the main package.
Mr. Ganai presented salient features of the current Industrial Policy and identified the areas where further improvement is required. He also gave brief about the strategy being followed to give fillip to the industrial and entrepreneurship development in the State. He said incentives under the State Policy include land and power at concessional rates, 3 percent interest subsidy on working capital, 100 percent subsidy on purchase of new diesel generators, 100 percent subsidy on project report and quality testing equipment, 5 percent rebate on interest on term loan for technocrats, 75 percent subsidy on research and development, special incentive for brand promotion and modernization, toll tax exemption, CST exemption, VAT remission, etc.
The meeting discussed issues relating to Trade Policy, Labour Development, Local Employment, Subsidy, Brand Promotion, Extension of GOI package incentives, VAT Refund, Removal of Negative List, Reduction in the rate of Electricity Duty, one time debt relief to MSME, power infrastructure improvement, setting up of eco-sensitive zones around National Parks and Wild Life Centuries, marketing support, grievance redressal, raw material for Pashmina, promotion of local industry through cluster approach, uniform lease, online registration, etc.
The representatives of Kashmir Chamber of Commerce (KCCI), Federation Chamber of Industries, Kashmir (FCIK) and Jammu Chamber of Commerce and Industries (JCCI) raised various issues relating to transport subsidy, import of plant machinery, decrease in gestation period, excise duty, inclusion of all items under LOC Trade, sanctioning of Exit Polity, waiver of electricity dues of MSME, Pashmina Raw Material Bank, VAT Refund, Green Category Units, Revolving Fund, Exemption of Entry Tax on Import of goods by Hotel Industry, Levy of tax on purchase of paddy, etc.
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