Excelsior Correspondent
Srinagar, Aug 19: Federation Chamber of Industries Kashmir (FCIK) projected the crisis being faced by the existing industry in the region to the visiting Parliamentary Standing Committee (PSC) on Home Affairs to Kashmir and demanded immediate bailout.
The FCIK delegation led by its president, Shahid Kamili apprised about crisis like situation to the PSC during their interaction with them at SKICC.
President informed the Committee about the withdrawal of all concessions to the Kashmir industry; which was already inching towards closure due to situation over the years followed by the severe blow due to Covid lockdown.
“The marketing support which would give cushion to the Kashmir industry has been withdrawn. It is becoming increasingly unviable and difficult to continue operation of our units which are not able to compete in market after various concessions enjoyed by the industry in J&K were withdrawn. If the current business ecosystem persists, I am afraid J&K will see more closure of manufacturing units,” he told Parliamentarians.
FCIK president cited Toll Tax, Entry Tax, Vat remission, freight subsidy, price preference, purchase preferences as the major factors/ protections which were granted to J&K as special package under J&K Industrially Backward Status. “Since then industry has deteriorated and not progressed,” he added
“The Industry is facing open competition with the rest of country whose working condition, working hours are much better, availability of cheap raw material and business ecosystem is favorable,” he told delegation.
He also said that Industry since last decade has not revived after receiving major blows by floods of 2014, 2016 unrest, 2019 situation and suffered severe blows by COVID lock downs.
“The existing industry is in such a bad shape that every single account has been uploaded with four restructuring (one account is paying interest on four additional accounts)”, he said.
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