Jammu, Feb 23 (KNN) With the Union Budget to be tabled in less than a week's time in the Parliament, Jammu MSMEs have submitted their Budget Memorandum to the Union MSME Minister Kalraj Mishra.

A delegation of Federation of Industries (FOI), Jammu led by Lalit Mahajan, President BBIA & Co-Chairman FOIJ, along with Parvinder Singh Jaggi, Secretary, BBIA presented a memorandum to Mishra on the behalf of the MSMEs.

Mahajan deliberated all the issues in detailed to the Minister which were highlighted in the memorandum related to the Industrial sector of J&K.

Some of the key issues discussed with the Minister included - Restoration of 100% Central Excise Refund to New Units as well as to the Existing units under the Substantial Expansion/Modernization and Technical Upgradation Programme for next Ten Years from the date of Production even in the GST Regime also.

“GST and CGST exemptions may be extended on the same pattern to the Industrial Sector as applicable on date. In the proposed GST ACT, Service Tax component has been included where as in J&K no Service Tax is applicable at present, so State Industries should be kept out of this burden in GST regime,” said BBIA.

The industries have also demanded income tax holiday for next ten years to all the new industrial units as well as existing units under Substantial Expansion Programme with exemption from MAT.

The association has also sought extension of DIPP Package of incentive for ten years which is going to expire on June 2017 with Naturalization of Khasra; 3% Interest Subsidy, 100% Insurance Premium Subsidy to new as well as existing Units under substantial Expansion Programme; Simplification of Guidelines for claiming Freight Subsidy Incentives; and Transport Subsidy on finished goods for the dispatch of goods to other parts of the country to naturalize the additional cost of transportation of raw materials.

The industry has also demanded development of infrastructure for which adequate funds should be provided.

Further, it has been a long pending demand of the Industrial Sector of Jammu & Kashmir for the setting up of Mother Industry in the State but till date no action has been taken by the Central Government, said BBIA.

“It is the need of the hour to establish a Public Sector Undertaking in the State to create more avenues for the speedy growth of Micro, Small & Medium Enterprises to create Employment and which will give an opportunity to the Small Scale Sector to grow in manifold as ancillary Units to the Mother Industry,” it added.

The MSME sector has also urged the Minister to improve ease of doing business in the state.

“All the Government Departments are bound to purchase the minimum quantity of 20% of their requirement from the MSME Sector but the Ministry of Defence is not covered under the said Act resulting the Units located in Jammu & Kashmir State are not in a position to get any benefit under the Act in respect of the procurement of material by the Indian Army Units located in our State,” it said.

“We suggest that the Ministry of Defence should also be covered under the preview of the Act. It should also made compulsory for all the Departments to induct MSME Officials as one of the Members of the Purchase Committee constituted by all the Central Govt. Departments comes under the preview of the order,” it added. (KNN Bureau)