Excelsior Correspondent
JAMMU, Aug 30: A delegation of Federation of Industries Jammu (FOIJ) under the chairmanship of Lalit Mahajan along with SC Dutta Co-Chairman, Federation of Industries, Jammu met Balamurugan D, Joint Secretary, Department for Promotion of Industry & Internal Trade, Govt of India in presence of existing unit holders as well as new investors from Pharma, Packaging and Mineral based Industries at his office at New Delhi and submitted a detail representation to discuss the issues in respect of problem being faced by existing as well as new units set up in JKUT under NCSS -2021 Scheme notified by Ministry of Commerce & Industry, Govt of India.
In respect of problem being faced by existing working units prior to March 31, 2021, the main issue discussed was the denial of GST linked incentives to existing units under substantial expansion in spite of facts that the existing units under substantial expansion always provided the fiscal incentives at par with new units in all the previous Notifications of 2002,2013 and IDS 2017 packages granted by Govt of India.
In respect of working capital interest subvention to existing units under NCSS-2021 package, the ceiling of Rs 20 lakhs per annum has been done in the NCSS-2021 package for the grant of working capital and term loan interest subvention whereas no such ceiling has been done for new Investors resulting it is very difficult for the survival of existing units due to stiff competition being faced from the new units.
During the course of discussions about the grant of GST Linked Incentive to New Industrial Units the kind attention was drawn towards the Agenda Point No. 2 of the Steering Committee meeting held on August 2024 with the remarks for the dilution GST Linked Incentive from Gross GST to Net GST and Capping resulting uncertainty prevails in the mind of new units as it is not possible to run their units as in case of any dilution in the GST linked incentives, which will be resulting into unviable to run their units as the said Incentive shall be utilized to offset the additional cost of incoming freight on raw materials and logistic cost for the sale of their goods to other parts of the Country.
Mahajan also drew the attention of Balamurugan D and said that due to locational disadvantages, shallow market avenues in J&K , hostile borders with China and Pakistan, it is not viable for the Existing as well New Units to work in J & K without Fiscal Incentives and that’s why Government. of India and State Govternment has always provided hand holding support to Existing as well as New Units in all the previous Package of Incentives granted since 2002 to create the employment avenues for local youths.
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