Jammu, Aug 8 (KNN) The Industries & Commerce Department of Jammu & Kashmir has ordered initiation of the process of de-registration of the micro, small and medium enterprise (MSME) units who have closed down their manufacturing process or after issuance of EM Part-II.

Addressing a press conference jointly organized by Bari Brahmana Industries Association (BBIA), . AOI Samba, Kathua Industrial Unit Association, BBIA President Lalit Mahajan said the Director, Industries & Commerce, Jammu in an order gave instructions to concerned General Managers, DIC to start the proceeding against the Unit Holders  if they to get non-revival of EM-II with in a period of 3 months.

He instructed that the process of de-registration of the said units shall be initiated.

The members of the association unanimously raised serious concerns over the uncertainty prevailing in the minds of MSMEs of J&K over its order No- 04 DI&C-J of 2019

Mahajan said the present position of the industrial sector of J&K is more serious due to sharp decline in the industrial growth in the state in post GST Regime due to non-availability of state fiscal incentives to the new units and units under substantial expansion resulting flight of capital from the state to other states.

The chiefs of various industry associations of the region said, if such orders are issued by the Industries Department then the survival of existing industrial units who closed down their manufacturing process due multiple reasons such as non-availability of funds or non-availability of orders, will attract the litigation for which the Industrial Department will be fully responsible.

“We term it as a deliberate attempt of the concerned officials for the reason best known to them for their vested interest,” the associations said.

They said, “J&K SIDCO is issuing the notices to the unit holders for the retrieval of their un-utilization of industrial land in spite of the fact that the land has been allotted on the basis of their project report keeping in mind the substantial expansion in near future. The SIDCO is collecting the lease rent since the allotment of land and it is unjustified on the part of the SIDCO and Industries Department to issue such directions without the consultation of Stake Holders.”

The MSME entrepreneurs cried that irrespective of the challenges like militancy, limited Marketing Avenue, higher production cost they had put up industries in the state. The State Government provided VAT Remission Incentives to the such Units from 2005 for their survival by selling their products within the State in Pre-GST Regime but the same Incentive was withdrawn in Post GST Regime and only Incentives of SGST Refund on the Value Addition was given with effect from July 08, 2017 which is equal to the 1/4th amount of the incentive prior to GST Regime which resulted into most of the units suspending their production.

The MSMEs have urged the government to give Free Hold Rights to the Industrial Units, continue with the Lakhanpur Toll Tax with the exemption to Industrial Sector, provide Turnover Incentives to all the Unit with suitable capping, provide State Freight Subsidy upto the Destination for the Interstate Sale and re-impose the Entry Tax.

The associations have urged the J&K Governor Satya Pal Malik to kindly intervene into the matter and issue necessary orders for the withdrawal of Notices issued by Director Of Industries and J&K SIDCO and also constitute a high level committee with the participation of stake holders to resolve the issue on priority basis. (KNN Bureau)