New Delhi, Oct 4 (KNN) MSME representative body, Association of Industries (AOI), Jammu has sought personal intervention of Governor to protect Small Scale Industries (SSI) sector from closure.

Raising various concerns of SSI sector, the members of the association expressed deep resentment over the unwanted circular issued on dated 27-September-2018 by the power department which has negated the budget announcements regarding amnesty to SSI sector.

The members demanded that the circular should be withdrawn immediately as theses units are suffering badly and at the verge of closure.

With regard to SSI units, an emergency meeting of Advisory & Executive Committee of Association of Industries, Gangyal was held under the chairmanship of President Bansi Lal Gupta and the other office bearers.

In the meeting, members unanimously decided to take up the issue with the Governor so that the SSI sector does not suffer.

The members also took serious view of notification orders No. 431 and 411, dated September 25, 2018 regarding 2% subsidy in lieu of CST exemption which was available to the SSI units under the VAT regime.

The association said “While it was a welcome step but by putting riders like 1000 kilometres condition which make the incentive available to only such units which sell their material beyond this limit, the Government has created a class within a class by denying the incentives to those units which were selling in neighboring states of Punjab, Haryana up to Delhi.”

The Association of Industries (AOI) has urged the Government to immediately remove the illogical condition so that the benefit is available to the entire sector.

Expressing deep anguish, members of the association said “even after the passage of more than one year the meager incentive regarding the SGST refund which was declared by the government vide SRO No. 63, 519 & 521 has still not being availed by the SSI sector.”

They said this has resulted in huge losses on account of blockage of funds and unnecessarily increased input costs.

The members condemned pick and choose policy adopted by the Commercial Tax Department due to which a lot of micro and tiny sector units have not even being inspected till now. Even those units which have been inspected have not received the funds promptly.

If this state of affairs continues, the SSI sector will see a huge mortality, for which the Government will be responsible. This is happening notwithstanding the fact that the Government is committed to promote ‘ease of doing business.’ The mortality will result in loss of jobs and retrenchment of the local labor, association pointed.

The members also appealed to the Governor’s administration that the SSI sector needs to be patronized by way of making it competitive by providing fiscal incentives to the industrial sector that were available before the changeover from VAT to GST regime.

The GST regime has resulted in more competition from SSI sector based in the neighboring states of Punjab, Haryana, Himachal Pradesh & Delhi which has resulted in the loss of business to the local industry, said AOI.