Excelsior Correspondent
JAMMU, Sept 24: Bari Brahmana Industries Association (BBIA), president Lalit Mahajan has urged the Union Government as well as the UT Administration to take prompt and effective steps for the survival of existing Industry in the Jammu and Kashmir.
While drawing attention of the Lt Governor Manoj Sinha towards the crisis being faced by the Industry in J&K, BBIA president in a press statement said that to provide employment opportunities to local youths, a process was started in 1960 with the establishment of Small Industrial Estates in Jammu and Kashmir Divisions and subsequently Industrial Estates was established in Gangyal, Bari Brahmana, Samba, Kathua and Udhampur and also in Kashmir Division by providing the land on 90 years lease hold rights to local as well as to outside investors. The unit holders were granted fiscal incentives for new units and existing units under substantial expansion by State/ Central Government from time to time.
He said at present around 4 to 5 lakhs local people are employed directly and indirectly in Industrial Sector and they were running smoothly till July 2019 with the price and purchase preference for local MSME Units for the supply of goods to State Govt departments. After the abrogation of Article 370 from 2019, they hoped that the all the Fiscal incentives shall be continued. But after Aug 5, 2019 it has been made mandatory for the State Govt Departments purchase goods through GeM Portal, resulting in the serious threat of closure being faced by the local MEME Units supplying the goods to State Govt Departments as the price and purchase preference has been withdrawn which was applicable to MSME sector previously resulting in drastic decline in the sale graph of local MSME Units who supply the goods to State Govt Departments and also through SICOP for the items reserved for the SSI Sector.
Mahajan said in 2021, Industries Department notified the Turnover Incentive as handholding support to existing unit working as on 31-3-2021 with the initial Budget of Rs 50 crores p.a. against which the claims have been received for the Financial Year 2021-22 from existing units amounting to Rs 206 crores but the Industries Department has declined to enhance the Budget to meet the additional requirement of Rs 156 crores, resulting great resentment amongst the working Micro, Small and Medium Enterprises of Jammu Division.
He said Govt has notified New Central Sector Scheme 2021 with the grant of Fiscal Incentives in the shape of reimbursement of 300 % Gross GST equivalent to the value of Investment in the Plant and Machinery but the said Incentive is not applicable to existing units as on 31-3-2021 on the Substantial Expansion/ additional items/change in the line of activity. With such harsh steps, the existing units may close down their units due to uncertainty prevailing in the mind of the unit holders which may be resulting into the mass scale retrenchment of workers in near future, he added.
BBIA president said that for the survival of the existing MSME Sector of the Jammu & Kashmir, it is the need of the hour to provide the Fiscal Incentives to existing units and Units under substantial expansion
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