Jammu MSMEs want govt to revisit Industrial Policy to attract investors into state

Jammu, 7 June (KNN) The Micro, Small and Medium Enterprises (MSMEs) body from Jammu, Bari Brahmana Industries Association (BBIA) has appealed the State Government to revisit its Industrial Policy 2016 to attract new investments in the industrial sector of Jammu & Kashmir (J&K).

The suggestion was made during a meeting of BBIA, held under the chairmanship of President Lalit Mahajan and other members. During the course of discussions, the alarming decline in the industrial growth since last three years with resultant marginal employment generated in the industrial sector was highlighted.

The Association opined that majority of the MSME units in J&K have limited market avenues within the State due to locational disadvantages and if the Government gives the budgetary support for the Interstate/Intrastate sale and transport subsidy, it will provide an opportunity to the unit holders to compete in the neighboring States and also attract new investment.

As per the data available with the Association for Jammu province, during 2016-17 and 2017-18, around 400 units were started with the employment of only 2400 persons and in 2018-19 around 140 units started the production with the employment of 1325 persons.

The members observed that the present State/Central Fiscal Incentives available to the Industrial sector have been diluted to 1/5 of the incentives as per the Industrial Policy 2004 and the Central Govt notifications, resulting that very limited Industrial growth has been reported in the last three year since the adoption of Industrial Policy 2016 by the State Government in post GST regime.

“In respect of Central Government fiscal incentives for new units and units under substantial expansion, the same has been diluted and linked with the investment of plant and machinery only in comparison to incentives available prior to GST regime, which is also creating hurdles in the Industrial growth in case of MSME units having limited investment in the Plant & machinery,” the BBIA members said.

The Association appealed Governor Satya Pal Malik, Advisor K Skandan and Principal Secretary Industries and Commerce, Navin Choudhary to convene an urgent meeting of the Industrial Associations of J&K for a threadbare discussions to re-look the Industrial Policy 2016 to ensure adequate fiscal incentives to MSME sector of the State to provide relief to the ailing working units which will also help to attract new investment for employment generation.