Jammu, Feb 23 (KNN) Federation of Industries, Jammu (FoIJ) has said that the existing MSME sector of Jammu and Kashmir (J&K) has been totally ignored in the new Industrial Package announced by the Union Government.

Addressing a press conference here on Monday, Lalit Mahajan, Chairman Federation of Industries, Jammu in presence of Jatinder Aul, Vijay Aggarwal, Ajit Lal Bawa Co-Chairmen FoIJ, Tarun Singla, senior vice president BBIA, Ajay Langer vice president BBIA, Viraaj Malhotra general secretary BBIA and others, said that existing local industrial units feeling neglected.

''There is strong resentment among units holders over this stance of the Government,'' they added.

Mahajan said while going through the Notification No. F/1(1)/2020-SSS dated 19-02-2021 issued by Ministry of Commerce & Industry, serious concern was raised towards the uncertainty prevailing in the mind of working MSME Micro and Small Scale Industrial Units of J&K due to inadequate fiscal incentives granted with the denial of reimbursement of gross GST to existing units and unit under substantial expansion as per the said notification due to which unhealthy competition may be faced from the new investors in the state who will get the benefits of gross GST reimbursement of 300 per cent on the investment of plant and machinery.

''Majority of the MSME Units set up by the locals working in the state facing militancy since last 30 years, with limited marketing avenues, higher production cost and keeping in mind the above facts, the central/state government provided fiscal incentives from time to time but with the introduction of GST, the Fiscal incentives of state as well as centre has been diluted in post GST regime and only incentives of IGST/CGST/SGST refund on the value addition was given from 08-07-2017 to existing units,'' an official statement quoted Mahajan as saying.

He further said that no state fiscal incentive is available to units set up after July 8, 2017 resulting in very limited growth reported against the IDS-2017 scheme announced by Govt of India.

“We fear that the working existing industrial units may opt for the closure of their Units in future due to non-availability of central government fiscal incentives,'' he said.