*Timeframe for new Industrial Policy extended for 4th time
Mohinder Verma
JAMMU, Oct 19: Creating an embarrassment for PDP-BJP Coalition Government, the Industries and Commerce Department has failed to honour the key announcement of 2015-16 Budget regarding formulation of new Industrial Policy for the State. Because of the slackness of those at the helm of affairs in this department, the State Cabinet was today compelled to extend the timeline for preparation of this document till March 2016.
With the extension in time-line for the 4th time, the Policy, which was scheduled to be made effective from the current year, is unlikely to become reality before the presentation of Budget for the financial year 2016-17 as the Finance Minister, Dr Haseeb Drabu has already announced that Budget for next financial year would be presented in the month of January 2016.
The existing Industrial Policy was announced on January 27, 2004 for a period of 10 years—up to March 31, 2015. The State Finance Minister, while presenting Budget for 2015-16 in the Legislative Assembly on March 22, 2015 had announced that Government would come up with new Industrial Policy on July 1, 2015 and he will link tax rates and exemptions with the new Policy. Till announcement of the new Policy, the Finance Minister had said that existing incentives and remissions will continue unless specified otherwise.
Keeping in view the announcement of the Finance Minister, the State Government on April 1, 2015 extended the Industrial Policy of 2004 for a period of three months beyond March 31, 2015 or till Industrial Policy-2015 is notified. However, the Industries and Commerce Department failed to meet the deadline fixed by the Government as a result of which the time-frame for formulation of new policy had to be extended by two months from June 30 till August 31.
At that time, it was stated that the new Industrial Policy has almost been finalized and is being submitted to the Planning and Development Department and Finance Department for their concurrence before the submission to the State Cabinet for approval.
As no major headway could be made, the State Cabinet had on August 21, 2015, on the request of the Industries Minister Chander Parkash Ganga, further extended the time-frame for formulation of new Industrial Policy till October 31, 2015. “The State Government faced embarrassment once again when the Industries Minister placed a memorandum before the Cabinet today seeking more time for completion of exercise”, official sources told EXCELSIOR.
Expressing serious concern over the dilly-dallying approach of the Industries and Commerce Department in translating major announcement of Budget 2015-16 into reality, the Chief Minister, Mufti Mohammad Sayeed asked the Industries Minister to explicitly state the time-frame required for formulation of new Industry Policy on the ground that repeated extension was putting question mark on the seriousness of the Government and sending wrong signal to the industrialists across the State, sources further said.
“Instead of granting two or three months time, the Cabinet in one voice granted time till March 31, 2016 to the Industries and Commerce Department for formulation of new Industrial Policy”, sources said, adding “the Cabinet approved extension of J&K Industrial Policy-2004 notified vide Government Order No.21-IND of 2004 dated January 27, 2004 till March 31, 2016 or till the new Industrial Policy-2015 is notified”.
“Though the Industries Minister cited vacant post of Secretary Industries and Commerce as the main reason behind delay in formulation of new policy, the same was not found as plausible reason as Khursheed Ahmed Ganai remained Financial Commissioner Industries and Commerce till last month before his transfer as Chairman, Bureau of Public Enterprises”, sources informed.
With this development, the Industries and Commerce Department is unlikely to translate key announcement of Budget 2015-16 into reality before the presentation of Budget for next financial year as the Finance Minister will present Budget in January 2016 and Industries and Commerce Department has yet not given final shape to the new Industrial Policy, sources said.
After the finalization of the policy, the same would be submitted to the Finance and Planning Departments for their concurrence and this process would also take time. Finally, the policy would have to be submitted to the Cabinet and Industries and Commerce Department has been left with only two and half months time to go through this lengthy process, sources said.
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