Srinagar, Aug 7 (KNN) The Jammu and Kashmir government is keen for early formation and notification of industrial policy, and to implement it from 2015 in order to encourage investment in the state.

J&K Chief Minister, Omar Abdullah has said that the package for industrial backward areas should be incorporated as part of the new industrial policy and directed for early refund of VAT to the industrialists.

He also emphasized the need for encouraging young local entrepreneurs to invest in the feasible industrial and handicrafts sectors to boost state economy and employment opportunities for the youth.

Abdullah said this while addressing the 5th State Industrial Advisory Committee (SIAC) meeting here yesterday.

The meeting discussed issues relating to Trade Policy, Labour Development, Local Employment, Subsidy, Brand Promotion, Extension of GOI package incentives, VAT Refund, Removal of Negative List, Reduction in the rate of Electricity Duty, one time debt relief to MSME, power infrastructure improvement, setting up of eco-sensitive zones around National Parks and Wild Life Centuries, marketing support, grievance redressal, raw material for Pashmina, promotion of local industry through cluster approach, uniform lease, online registration, etc.

He said that incentives as provided under the State and the Central Industrial Policies should easily accrue to the local industrialists and budding entrepreneurs so that they could expand their industries and launch new ones, reports media.

He said holistic industrial development is imperative for all round development of the State and generation of wide-ranging economic activities for both skilled and unskilled human resource.

The Chief Minister was given detailed account of the functioning of Industries and Commerce Department and the policy it is pursing to strengthen the sectors of industries and handicrafts in the State which are responsible for providing livelihood to more than five lakh people.

Meanwhile, the Financial Commissioner Industries and Commerce Khursheed Ahmad Ganai said that a new Draft Industrial Policy has been formulated by the Committee constituted for the purpose taking care of all aspects of the growth and welfare of industries and handicrafts.

He said the Draft Policy has been referred to Planning, Finance, Law and Parliamentary Affairs Department for observations and commitment. He said that package for industrial backward areas would be considered as a part of the main package.

It was stated that during the last two years about Rs 47 crore worth incentives have been paid to the industrial units under the State Policy while the cumulative figure in this regard is Rs 196.78 crore by the end of last year. It was stated that under the Centre package incentives worth Rs 186 crore have been paid to the industrial units cumulatively till the end of the last year.

Presently 29,454 small scale industrial units are registered in the State while the number of medium and large industrial units registered is 115. There are 53 industrial estates and the total investment in the industrial sector other than handicrafts is Rs 7509 crore employing 1.51 lakh people.

More than 3.75 lakh artisans are associated with handicrafts sector and the production of handicraft items worth Rs 2017 crores was achieved in the last year. Of this, exports to the tune of Rs 1695 crores were registered. There are about 38000 weavers earning their livelihood from handloom sector. Government has registered 523 Handloom Cooperative Societies and it runs 100 training centres for capacity building of weavers.

The meeting was attended by Minister of State for Industries and Commerce, Sajjad Ahmad Kitchloo, Chief Secretary along with other officials and industry representatives. (KNN/SD)