Jammu, Feb 22 (KNN) Bari Brahmana Industries Association (BBIA) has urged the Government to save the industrial units of Jammu and Kashmir (J&K) from closure.

The association held a meeting on Sunday under the presidentship of Lalit Mahajan, Chairman Federation of Industries, Jammu to discuss the notification issued by Ministry of Commerce & Industry, in respect of “Industrial Development Package-2021” for J&K industrial units.

While going through the notification No. F/1(1)/2020-SSS dated 19-02-2021 issued by Ministry of Commerce & Industry, members present in the meeting raised serious concern over the uncertainty prevailing in the mind of working MSME in J&K due to inadequate fiscal incentives and denial of reimbursement of gross GST to existing units and units under substantial expansion as per the said notification.

''Due to which unhealthy competition may be faced from the new investors in J&K who will get the benefits of gross GST reimbursement of 300 per cent on the investment of plant & machinery,'' BBIA said.

It further said that majority of the MSME units set up by locals working in the state facing militancy since last 30 years, with limited marketing avenues, higher production cost and keeping in mind the above facts, the central/state government provided fiscal incentives from time to time but with the introduction of GST, the fiscal incentives of state as well as central government has been diluted in post GST regime and only incentives of IGST/CGST/SGST refund on the value addition was given w.e.f July 8, 2017 to existing units.

Moreover, no state fiscal incentive available to units set up after July 8, 2017 resulting in very limited growth reported against the IDS-2017 scheme announced by the government.

“We fear that the working existing industrial units may opt to close off their units in future due to non- availability of central government fiscal incentives as per with the industrial development package 2021 for new units which may be resulting in mass scale retrenchment of local Industrial workers,” they added.

“We also wish to draw the kind attention of Lt. Governor that no fiscal incentive provided to the new units on the working capital loan in the said scheme whereas as per previously announced press statement of state government the interest subvention of 5 per cent on the working capital to new units also was the part of the package of incentives,” they maintained.

BBIA also demanded road freight reimbursement on the import of raw materials from outside the state and export of finished goods to other part of country, turnover incentives to all the units selling their products within the UT of J&K, budgetary support of 2 per cent turnover on interstate sale to all the units as marketing support as per SRO 431 without any riders of 2016-17 sale besides CGST/SGST reimbursement benefits to existing units, units under expansion, new units and the units covered under SRO 519/521 whose residual period is going to be expired in near future.