Excelsior Correspondent
JAMMU, Sept 19: Chairman of the PHD Chamber of Commerce and Industry (PHDCCI) Jammu, Rahul Sahai led a delegation to meet Balamurugan D, Joint Secretary, Department of Promotion of Industry and Internal Trade (DPIIT), Government of India.
The meeting focused on the implementation of the New Central Sector Scheme for Industrial Development of Jammu & Kashmir (NCSS-2021) and the critical concerns surrounding proposed changes to the scheme.
The delegation, representing the industrial and service sectors of Jammu & Kashmir, presented a detailed memorandum that highlighted the growing apprehension regarding the conversion from Gross GST to Net GST under the NCSS-2021.
Sahai expressed deep concern, stating that these changes could severely impact the viability of existing and upcoming projects in the region. He emphasized that the NCSS-2021, introduced after the abrogation of Article 370, was designed to offset the region’s higher production costs due to logistical challenges, labour costs, and land acquisition difficulties. The scheme had successfully attracted both large and small investors, creating new employment opportunities and economic growth in J&K.
He warned that the proposed reduction in incentives could jeopardize the entire scheme’s purpose. Industries with low-value additions or inverted duty structures are especially vulnerable to these changes, potentially leading to business closures and reduced investments. This is particularly concerning for sectors like Pharmaceuticals, which are heavily reliant on the original incentive framework. According to an internal analysis, the proposed changes may drastically reduce incentives, leading to the scheme’s ineffectiveness.
As the deadline for registration under the scheme approaches, many businesses in Jammu & Kashmir are still in the process of securing basic infrastructure like land, power and water. With around 680-700 applications expected from the Jammu division alone by September 30, 2024, Sahai urged the Government to extend the application deadline. With an increase in the budget allocation, nearly 50% of applicants could miss out on the incentives if not extended, he added.
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