Industrial Growth in Jammu and Kashmir Stalls Due to Regulatory Delays

The Federation of Industries Jammu (FOIJ) has highlighted significant delays in granting fiscal incentives and registration under the NCSS-2021 Industrial Development Scheme, resulting in a standstill in industrial growth across Jammu and Kashmir. Despite substantial investments made by over 700 industrial units, they await approvals, with many having already purchased machinery and built infrastructure. The FOIJ has expressed concern over the lack of State Industrial and Warehousing Policies, pending with the J&K administration, and has urged the Centre to increase budgetary support by é 75,000 crore to generate lakhs of local jobs.

Key Takeaways:

• Over 700 industrial units are awaiting approvals, despite having made substantial investments, with a total estimated fiscal benefit pending at é 75,000 crore.
• Only 3% of large-scale industries have received 67% of the é 29,400 crore budget allocation under NCSS-2021, leaving 97% of MSMEs with only 33% of the allocation.
• The FOIJ has proposed a three-tier registration preference for units based on application timelines and investment readiness.
• Many investors have purchased machinery and built infrastructure but are unable to begin operations due to regulatory delays.
• No land allotment committee meetings have been held in 2023-24 or 2024-25 for MSMEs in Jammu province.
• The FOIJ Chairman, Lalit Mahajan, has written to Prime Minister Narendra Modi, Home Minister Amit Shah, Commerce Minister Piyush Goyal, and J&K Lt. Governor Manoj Sinha, highlighting the concerns.

Statistics:

• é 29,400 crore: Budget allocation under NCSS-2021.
• 67%: Allocation for 3% large-scale industries.
• 33%: Allocation for 97% MSMEs.
• é 75,000 crore: Estimated fiscal benefit pending for 700 industrial units.
• 400: Number of units that applied online before the September 30, 2024, deadline.
• 300: Number of units that applied offline due to land lease delays.

Sources:

• The Northlines: "FOIJ raises concerns over industrial growth in J&K, seeks Rs 75,000 crore budgetary support"
• Contify.com: distribution of The Northlines article.