Expecting big announcement by Modi soon: president KCC&I
Fayaz Bukhari
SRINAGAR, Apr 5: In a significant development, a traders’ delegation from Kashmir today called on Prime Minister Narendra Modi to seek support for revival of the economy of the Valley that has been ravaged by three decades of conflict.
The traders’ delegation led by Kashmir Chamber of Commerce and Industries (KCCI) president Sheikh Ashiq submitted a 14-page memorandum, seeking support for revival of the economy of Kashmir.
“We discussed the business scenario of Kashmir which has been hit hard for last 3 decades. The issues pertaining to trade, commerce and industry were discussed at length,” Ashiq told Excelsior.
He said that they also raised the banking issues of the traders including restructuring of accounts as the majority of the businessmen have suffered huge losses since the 1990s.
He said the delegation raised various issues pertaining to the revival of local business, economic reforms and the need for improved road connectivity to the Valley, more international direct flights between Srinagar and Sharjah, Dubai and Jeddah.
Ashiq said that PM told the delegation that “I am here to build and not to destroy”.
“We are expecting some big announcement from Prime Minister soon on revival of economy and direct flights to Jeddah. We were assured of necessary efforts for the development of business in Kashmir”, he added.
The Chamber president said that they raised the issue of early establishment of the already announced model carpet village. The village is proposed to be built in Sonawari area of Bandipora where there will be all inbuilt facilities.
“The issue of Houseboat industry was also raised with the PM for its revival. We called for a special package for tourist taxi operators, house-boat owners and industries”, he added.
He said that the issues faced by the hotel industry were also raised. This included a demand for three-year GST waiver and extension of land lease at the famous hill resorts of Pahalgam and Gulmarg to the owners who have suffered huge losses due to “unavoidable circumstances”.
“The Prime Minister assured the delegation that necessary efforts will be made for the development of business in Kashmir and we are expecting some good announcement soon,” Ashiq said.
The delegation which met the PM included Hotelier Club president Mushtaq Chaya, JKHARA president Showkat Choudry and PHD Chamber of Commerce and Industry, Kashmir chapter, president Baldev Singh Rana. The meeting was coordinated by Jammu and Kashmir Waqf chairperson Darakhshan Andrabi.
The KCCI in its memorandum submitted to the PM read that the overall losses incurred in Kashmir over the years have resulted in an unprecedented level of stress on the working capital and finances of local business establishments.
“Though there have been several interventions by the Government for extending support, the continuous cycle of disruptions has failed their objectives. For accounts, which are NPA post 2014 and need revival package,” the memorandum read.
It demanded soft loans for five years for the business sector for revival and rehabilitation. “GST penalties for the period of COVID should be waived so that they can work properly and engage more people for work,” the memorandum stated.
The memorandum advocated freight subsidies to help increase export and make local products competitive in the international market. It demanded declaration of Kashmir handicrafts as a Special Economic Zone.
It also called for attractive schemes for the youth inclined towards export industry, exemption of taxes on all handmade items like pashmina shawls, carpets, papier mache, crewel, chain stitch and wood carving.
“Due to slow down in the global market since 2014 the Jammu and Kashmir Government should take up this matter vigorously with the Reserve Bank of India so that our exporters and manufacturers are relieved as their exports collection is very slow. They should be allowed to get back their goods so that a lot of complaints are taken care of,” it said.
The KCCI said the handicraft sector of Kashmir could receive a huge boost if the Central Government would reserve a minor percentage of Central purchases as well as urge States to purchase Kashmiri handicrafts products including shawls and silk handmade carpets.
This would also greatly support the liquidation of a huge pile up of inventory in this sector for which the KCCI has also pushed for special funding to the tune of Rs 500 crores.
It also demanded a three-year full GST waiver for travel and tour operators, interest free or soft loans for survival and revival of the tourism industry.
“The lack of budgetary assistance and abolition of toll tax without formulation of any substituting protective mechanism has severely impacted the local industries…measures like providing of working capital at concessional interest rates and waiver of interest for the period of lockdown are urgently required to provide sustenance to the local industries,” the KCCI said.
The memorandum also highlighted the need for adopting the Himachal Pradesh model for the welfare of the farming community and a relook of the MSME scheme, claiming that it was not being followed by the financial institutions.
The Jammu and Kashmir known as “Hoteliers Club” also submitted memorandum during the meeting. They demanded identification of genuine cases land transfer under Roshni Act for regularization.
They demanded permission for upgradations, refurbishment and renovation of hotels at Gulmarg whose lease of the land has expired.
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