Jammu, Apr 1 (KNN) Amidst rising challenges in Jammu and Kashmir (J&K) for the business community due to ongoing tensions post Pulwama attack, the economic growth of the state has come to a stand still. Talking to KNN India, Lalit Mahajan the President of Bari Brahmana Industries Association (BBIA) shared his expectations from the party which comes to power after Lok Sabha polls in May this year.

He suggested that the State government should consider converting lease hold land into free hold land for "sons of the soil" which according to him will help in the growth and development of state.

He said there is a need to take measures to woo investors, by providing Land on 90-year Lease basis which is at present on 40 years basis,  in the state which in return would give employment to locals and generate more businesses for ancillary units directly and indirectly.

Talking more about the issues faced by the MSMEs, he said that "Converting lease-hold lands into freehold lands would help improve the Financial Health of the local sons of the Soil by getting liberal Finance from the Banks  in J&K which will  also encourage entrepreneurs."

Making land freehold, according to him, will help potential sectors like Micro, Small and Medium Enterprises (MSMEs) attract more investment and motivate local entrepreneurs.

Mahajan also expressed fear over declining growth rate and employment rate of industries in Jammu and Kashmir citing “non-availability” of Post GST Central/State Fiscal Incentives to the New Units and Units under Substantial Expansion as one of the key reasons and it is the need of the hour for the announcement of Post GST Fiscal Incentives by the State Government for J&K Industries to compensate the additional cost of transportation of Raw materials and finished good enabling them to sold their products in the neighbouring States like Punjab,Haryana, HP and Rajasthan.

He said that at present any new industry that is being set up in J&K avails no benefit which ends up in them being shut down and the Fiscal Incentives announced by the Central Government at par with the North Eastern States does not serve the purpose as those limited  Incentives are meant for  Interstate Sale only which too also with the rider of Capping only linked to Investment only in the Plant & Machinery.

He also mentioned that since July  2017 there has been very few no new industry setup in J&K.

“So there should be some liberalization in terms of giving incentives by the government to various industries that wish to start their business here,” he added. (KNN Bureau)