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All is not well with J&K MSMEs: FOIJ

Updated: Sep 10, 2018 10:19:47am

All is not well with J&K MSMEs: FOIJ

Jammu, Sept 10 (KNN) The Jammu micro, small and medium enterprises (MSMEs) have expressed disappointment with regard to delay in grant of fiscal incentives approved in the State Budget 2018-19.

The Federation of Industries, Jammu (FOIJ) has said that the industries, both MSMEs as well as large scale enterprises, are going through a crucial stage mainly because of the “casual” attitude of the state government in respect of grant of fiscal incentives at par prior to GST Regime.

This, the Federation said has resulted into slowdown of industrial production and shifting of production base by industrial units to the nearby markets.

FOIJ said, “As per the data available with us, industrial growth is declining day by day due to non-availability of Central/State Government’s fiscal incentives due to which very negligible new units have got registered with the industries department in last three years.”

 It added that, “…as annually only around 200 MSME Units commenced the Production with the Employment of around 1100 persons. The position is more serious as number of units are in the process of surrendering the land allotted to them due to non-availability of State/Central Fiscal Incentives to new units.”

FOIJ pointed that MSMEs as well as large scale units are suffering very badly in the state due to delay in the grant of fiscal incentives as approved in the State Budget 2018-19.

“The files are rolling between Finance and Industries Department in spite of repeated requests and reminders by Federation of Industries, Jammu,” FOIJ said.

FOIJ cried that the MSMEs owned by local people are on the verge of closer due to non-availability of requisite fiscal incentives at par in the VAT Regime which may resulting in to mass scale retrenching of work force due to discrimination in the Grant of Fiscal Incentives by State Government to those units exempted under the Central Excise Regime prior to GST Regime.

FOIJ said the financial condition of the Industrial Units is eroding day by day due to delay in the release of Notified Fiscal Incentives by Commercial Tax Department in respect of Reimbursement of CGST/SGST due to cumbersome guidelines of the SRO 519/521 and 63.

The Industrial Units have no option but to pay additional freight on the Import of Raw Materials and Finish goods due to delay in Implementation of Central Government Transport Department Notification dated 16-07-2018 in respect of enhancement in the Safe Axel Load for Commercial Vehicles, the Federation said.

Government Departments are clandestinely refusing purchase of material by issuing Tenders on turnkey basis by ignoring the guidelines of Industrial Policy 2016 which clearly says that the material shall be purchased from Micro & Small Sector with Price/ Purchase preference through SICOP, FOIJ said.

The MSMEs have urged the Governor of J&K to intervene into the matter to resolve issues of Industrial Sector of J&K and have also requested to convene an urgent meeting with the participation of Stake holders from Jammu/ Kashmir Industrial Stake holders with the of grant State Fiscal Incentives to the existing as well as new units and take up the matter with the Central Government for the grant of fiscal incentives at par with the North Eastern States to the Industrial Sector of J&K for the rapid Industrial Growth to provide employment to unemployed youths of the State. (KNN Bureau)


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