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FOIJ Delegation Seeks MSME Ministry Lifeline For Struggling J&K Industries

Updated: Apr 11, 2024 02:18:34pm

FOIJ Delegation Seeks MSME Ministry Lifeline For Struggling J&K Industries

New Delhi, Apr 11 (KNN) A delegation from the Federation of Industries Jammu (FOIJ), met with S.C.L. Das, Secretary of the Ministry of Micro, Small & Medium Enterprises (MSME), to seek support for the struggling industrial units in the Union Territory of Jammu and Kashmir.

The delegation highlighted the precarious situation faced by existing industrial units in J&K due to the dilution of fiscal incentives in the post-GST regime and the Industrial Policy 2021-30.

They warned that thousands of units might be forced to shut down soon, unable to compete with outside suppliers due to higher transportation costs for raw materials and limited marketing avenues within the state, exacerbated by the hostile borders.

The members drew attention to the fact that while previous incentive packages granted substantial extension of benefits to existing units on par with new units, the NCSS-2021 Scheme notified by the Ministry of Commerce and Industry in 2021 excluded existing units from the GST-linked incentive, putting the majority of them on the verge of closure.

Key issues raised included the need for enhancing budgetary allocation for reimbursement of turnover incentives to existing units, and granting GST-linked incentives to existing manufacturing units undertaking substantial expansion after April 1, 2021.

Other matters of concern included road freight reimbursement for raw material purchases, price/purchase preference for local MSME units in state/central government procurement, and exemption from the ESI Act for MSME units with less than 20 employees, similar to the EPF Act.

Secretary S.C.L. Das assured the delegation that the MSME Ministry is keen on the development of MSME units in J&K and will work towards early resolution of state-specific issues with the UT Administration and concerned ministries of the Government of India to ensure the survival of existing industrial units.

The industry delegation was led by FOIJ Chairman T.S. Teen and Co-Chairmen Lalit Mahajan and S.C. Dutta.

(KNN Bureau)


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