Excelsior Correspondent
JAMMU, Mar 4: Chairman Federation of Industries Jammu (FoIJ), Rattan Dogra, Co-chairmen Jatinder Aul and Deepak Dhawan have expressed their deep resentment over the utter neglect of existing local micro/small industrial sector by the concerned authorities to address any of their genuine grievances to find mutually beneficial solutions.
With the formation of Union Territory local small/micro sector had very high hope that with the direct involvement of Govt of India their plight shall considerably and progressively improve to enable them to continue to provide jobs to local populace, second largest after the state Govt, however, FoIJ regrets to elaborate that all the factors aimed at restoring competitive edge including VAT remission/Toll Tax/Entry tax for import of finished goods in J&K have not suitably compensated for in favour of local micro/small sector despite repeated assurances. This sector has reached at the verge of closure.
FoIJ has further elaborated that J&K Govt has suddenly shifted its procurement process through Gem portal for all Govt Departments/ Agencies/PSU’s including PHE, I&FC, PDD, Forest, Education etc. which is contrary to the provisions of existing Industrial Policy that protects the local units through price/purchase preferences. FoIJ considers it pertinent to add that near total majority of local units comprise of very small/Micro units which are either not equipped and/or ill-equipped to face the miseries that are likely to erupt as a direct consequence of shift in the procurement process.
Previously State Govt had identified various items of regular/common use for procurement through PSU’s like SICOP which were floating tenders and finalizing the rates thereof for supply to Govt Departments/ agencies. As another consequence such PSU’s shall have crippling effect upon their revenue earnings. The shift in the procurement process has already started to impact the financial/economic viability of vast majority of local micro/small units which will only add to the increasing NPA’s. All the purchasing Departments/ Agencies are reluctant to place orders even for those products which have already been finalized to be procured from local Micro/Small units directly or through SICOP.
FoIJ further emphasizes that various Finance Department circulars regarding procurement are contradictory in nature while one circular impressive all Govt Departments/Agencies to achieve an overall procurement of minimum of 20% of total annual purchases of products and services rendered by micro and small enterprises mandatory, while another circular towards e-tendering upon Gem portal exposes them to all India basis beyond the scope and resources of local Micro/Small units.
FoIJ requested the immediate intervention of the Lt Governor and his advisors to keep the irrelevant circulars regarding procurement for the current year in abeyance to continue the existing system of procurement/purchases to accommodate to provide price/purchase preference to local units.
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