Neither Centre nor State Govt interested in industrial development of J&K, cry MSMEs

Jammu, July 31 (KNN) The Federation of Industries Jammu (FOIJ) has expressed fear over declining growth rate and employment rate of industries in Jammu and Kashmir citing “non-availability” of Post GST Central/State Fiscal Incentives to the New Units and Units under Substantial Expansion as one of the key reasons.

“The position is more serious due to reduction in the Fiscal Incentives available to the working units in post GST Regime as compare to the Fiscal Incentives in Pre GST Regime. As a result of this, a large number of MSME Units are on the verge of closures or are either in the process of shifting to other parts of the country which is nearer to the market,” Lalit Mahajan, Chairman, FOIJ said.

 He said it is getting difficult for the units to run due to additional cost of raw materials and finished Goods for manufacturing in J&K.

Even the incentives approved in the State Budget for the financial year 2018-19   in February 2018 is not yet notified by the State Government, Mahajan said adding that this is resulting into uncertainty in the minds of majority of units working in the state.

Presenting data which has caused concern to them, FOIJ pointed,

“It is worthwhile to mention here that the Industrial Estates developed in our State with the Investment of crores of rupees lying vacant due to non-availability of investor in our State,” FOIJ Chairman said.

The position is more serious in respect of 7000 to 8000 Micro and Small Scale Units working in our State,  as in post GST Regime limited  Incentives  given by the State  Government to existing Micro and Small Scale Units who are not availing the Central Excise Benefits prior to GST Regime due to Exemption up to 1.50 Crores Turnover with the Exemption of VAT, he said.

FOIJ members said that the majority of Micro and Small Scales Industrial Units of J&K  are working despite all the odds in the last 28 years like Militancy, Limited Market Avenues, Locational  Disadvantages and other related issues resulting higher Cost of Raw materials and the Stiff Competition from the Units Located in the neighboring States.

They said now it is unjustified on part of the State Government to delay the issuance of State Package of Incentives to the industries which are providing employment to lakhs of workers.

The federation expressed disappointment stating that neither the Centre nor the State is interested for the Industrial Development in J&K even as the fact remains that industry is the only source of employment generation in J&K.

FOIJ has appealed both the Centre as well as State Government to extend Central/State Fiscal Incentives to the existing as well as new units which would provide relief to existing MSMEs and help them survive. (KNN Bureau)