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Govt seeks Rs 100 cr corpus fund
10-year tax holiday for J&K industry in offing

Excelsior Correspondent

SRINAGAR, Oct 19: Jammu and Kashmir is likely to get tax holiday for industrial units under new relief package.

This was disclosed by the Minister for Industries and Commerce, Dr Mustafa Kamal while participating in Meet the Press programme organised by the Information Department this evening. He said unlike North-East, the State has asked for 10-year tax holiday not only for new units but old ones also. J&K, he said, deserves this preferential package in view of the difficult condition the industry has undergone during a decade.

The Minister said that the State has also sought Rs.100 crore corpus fund for improvement of infrastructure in the existing Industrial Estates in the State. Giving details about measures taken by the Government for revival of industries during the last four years, the Minister said that Rs.47 crores were provided under the Rs. 310 crore Debt Relief Package sanctioned by the Centre in favour of those having suffered losses during militancy in the shape waiving of loans upto Rs.50,000 each. Besides, Rs.73 crores were provided to affected traders also.

The State Government, he said, has strongly pleaded to the Centre to waive off loans of unit holders beyond Rs.50,000 as the Industry has suffered heavy loss due to militancy. He said as a one time Relief Exit Policy, simple, compound and penal interest of about 1450 units was waived off by the SIDBI and State Financial Corporation after paying the principal amount by borrowers. However, if any other unit holder, who has been unable to avail of the benefit of the scheme, could still approach the Industries Department and his case would be taken up on merit, the Minister added.

The Minister said an eco-friendly Industrial Policy has been implemented in the State in 1998, which provides for about 24 attractive incentives to the entrepreneurs for revival of sick units and establishment of new ventures. Dr. Kamal said that on the request of the State Government, the Union Finance Minister will be holding a meeting of heads of all Financial Institutions and Banks of the country in November, 2000 at Jammu where ways and means would be explored to provide generous and liberal financial support to the militancy ravaged industry in the State.

He said for tapping the marketing opportunities in Central Government offices and Central Purchasing agencies, particularly Defence, Railways, Posts and Telegraph departments located in the State, a 2-day Buyer-Seller meet would be held on 23rd and 24th of this month at SKICC. The Director General, Supplies and Disposal will participate in the meet with a team of officers to book requisite products for their respective departments. This, he said, would give a boost and marketing cover to SSI sector in the State. In addition, he said, 15 per cent price preference has been given to SSI Units in all Government purchases and about 23 items have been reserved for this purpose.

The Minister said that the State is embarking upon a new Industrial strategy to provide licenses only to such Industries that have market potential and viability. The plan is based on the principle of demand and supply and not vice versa, he said.

The Minister also dispelled apprehensions that all Public Sector Undertakings are being closed down and said that only Himalayan Wool Combers and Handloom, Handicrafts Raw Material Organisation (HHRO) are being closed down as their liabilities have touched a whooping Rs.9.30 crores and this company has been in red since its inception. However, the affected workers of the company would be compensated on the same pattern as adopted by the Central Government Public Sector Undertakings including Steel Authority of India. Even in that case, the interests of the workers and employees would be safeguarded to their full satisfaction.

Dwelling upon the measure taken by the present Government for industrialization, which is the only alternative has potential to generate more employment avenues for un-employed, the Minister said that Rs.1.38 crore Craft Development Institute is being set up at Bagh-i-Ali Mardan, Srinagar where craftsmen would be provided modern facilities in design development, dying and drying carpets, revival of traditional designs etc. The services of a reputed consultant, appointed by the Union Ministry of Textiles, would be made available to the crafts persons in the Institute. He said an Entrepreneurship Development Institute would also be set up to provide necessary training to entrepreneurs. For this purpose, the services of Prof Vijay Mahajan of Texas University, USA are being utilized, the Minister said, adding that Institute would be named after Sher-i- Kashmir.

Dr Mustafa Kamal said that owning to its vast market potential world over, the manufacturing of cricket bat is being given special emphasis adding that bat industry has potential of Rs.100 crore annual turnover. He said a new law has been enacted recently to ban export of willow clefts from the State and smugglers of willow wood would get 3 year imprisonment and fine of Rs one lakh. For abundant raw material for cricket bat manufacturing, plantation would be made in Zainageer Kanal. He said Central Government would provide funds for a Process cum Production Development Centre for cricket bats, which would established at Muthi in Jammu. He said cricket bats manufactured in J&K stand at No.2 as far as its quality is concerned.

The Minister said that Rs.8.87 crore Software Technology Park would be commissioned at Rengreth, Srinagar on 5th December this year, which will pave the way for the J&K to enter in the Information Technology era. The Park would provide High Speed Data Communication facilities including Earth Station for upgradation civil structures to provide incubation facilities to the prospective entrepreneurs for setting up their software development units. In addition, he said, a number of medium industries including Rs.43 crore Apple Juice Concentrate Plant, Rs.3 crore Alba Power, Rs.50 crore worth Cement factories in private sector have also gone into production and some Industrial Growth Centres and Integrated Industrial Development Projects are fast coming up in the State which, would provide jobs to about one lakh un-employed persons, if every thing goes in right direction. He said a Paper Pulp Plant for seasoning walnut wood would be set up under Critical Infrastructure Scheme. He said Bemina Woollen Mills would be modernized and designs and quality of Kashmiri tweed would be further improved to make it in tune with the liking of the customers. Services of an expert from Britain are being acquired for this purpose. Similarly, age old Silk Industry is being revived on modern lines and new designs and prints are being introduced in silk products provide. The Union Textile Minister, Mr. Kashi Ram Rane has assured full support from the Centre for this purpose, the Minister said adding that Agro based Industries Handloom and Handicraft sectors would be given greater thrust as raw material for these Industries is locally available in abundance.

The Minister said that State has sought a corpus fund of Rs.100 crores for development of infrastructure in the Industrial Estates in the State.

In reply to a question, the Minister said that SICOP has provided marketing support worth Rs. 62.17 crores to the Valley based SSI units during last three years besides providing land to 213 units. He said the functioning of 22 arts emporia within and outside the State is also being improved with relocating their locations in prime business centres. He said craft melas were held at Paris, Tokyo, Telavive etc. where the demand for Kashmir handicrafts has increased manifolds. Only in Paris, Shawls worth Rs. 1.05 crores were sold in such an exhibition. He said a big Houseboat type show window would be set up at 5-Prithvi Raj Road, New Delhi for advertising Kashmir Handicrafts in a big way.

Second phase of J&K Census after Diwali
Govt won’t permit interference by Lashkar,
Hizbul Mujahideen

From B L Kak

NEW DELHI, Oct 19: The Union Home Ministry has sent out a fresh set of guidelines to Jammu and Kashmir Government as part of the Centre’s overall plan for ensuring peaceful and smooth 2001 census survey in the State.

By far the most significant message from the Government of India is for the J&K Police and other security agencies: ‘Hold fast and thrust deep in the event of any disturbance or disruption by Pakistan-aided ultras, particularly the ones belonging to the Lashkar-e-Toiba and Hizbul Mujahideen’.

Considering the fact that the 2001 census survey in J&K has become an extraordinary exercise following the threats from the Lashkar-e-Toiba and Hizbul Mujahideen against it, the Government of India-the Home Ministry, to be precise-has deemed it necessary to closely monitor the situation. In fact, a team of officials has been constituted for the purpose.

A Ministerial source told EXCELSIOR that after the threats and warnings received from the Hizbul Mujahideen and the Lashkar-e-Toiba, the Government was left with no alternative but to put the local police and other security agencies in Jammu and Kashmir on a high alert. No census could be conducted in 1991, merely because of the enormous terrorist violence in the State, particularly in the Valley.

And when groups of officials formally started the exercise in certain pockets of the Srinagar district in August this year, Hizbul Mujahideen commander, Masood Tantrey, sought to inject a new element into the situation with his warning on September 7 of an "Indian conspiracy" to alter demographic profile of Jammu and Kashmir. The Hizbul Mujahideen as well as Lashkar-e-Toiba reiterated the demand for immediate termination of the census process.

According to the Ministerial source, the Government of India highlighted the importance of "retaliatory" measures by the J&K Police and paramilitary personnel only after the Lashkar-e-Toiba’s Abu Ubaid reiterated his organisation’s "highly provocative and prejudicial" threat: "If any one of the 22,000 Government employees is seen participating in the census operations, he or she will be killed without warning".

The Ministerial source disclosed that the J&K Government had already been furnished with the operational plan for involving various categories of Government employees and subsequently pressing them into service in various areas of the State. Following the recent meeting in New Delhi between the J&K Chief Minister, Dr Farooq Abdullah, and the Home Minister, Mr LK Advani, a decision was taken to rush additional paramilitary personnel to the communally-sensitive pockets in Jammu and Kashmir.

The Ministerial source also disclosed that "massive" security cover had been arranged for thousands of officials, who will be escorted from door to door through the Valley of Kashmir from end of the current month to conduct the second phase of the 2001 census survey. Mr Advani was said to have taken cognizance of reports vis-à-vis the larger political battle being fought over the census in J&K.

These reports, the Ministerial source said, not only pertained to the belligerent posture adopted by the Pakistan-aided terrorist outfits but also to the "unwarranted" utterings of some "pro-India" Muslim politicians. And one such politician identified by Dr Farooq Abdullah himself is none other than Prof Saifuddin Soz. Prof Soz’s written statement of September 13 (a copy of which has already been furnished to Mr Advani), which inter alia stressed that "any manoeuvring and dishonest effort" to tamper with the Muslim majority character of the State "must be ruthlessly discouraged and condemned", led to the allegations of collusion with the Hizbul Mujahideen.

After Mr Advani raised some questions at a high-level meeting in his office recently, a document, which was prepared on the basis of "facts and figures" provided by Mr Firoze Ahmad, Commissioner of Census Operations, was submitted to him (Home Minister). On figures doled out by Prof Soz, Mr Ahmad has been quoted as having insisted: "He (Prof Soz) is talking nonsense. He has the published figures, but does not seem to have made an effort to understand what they mean".

The document available with Mr Advani has pointed out that the population growth of Muslims massively outstripped that of Hindus in five of six districts in Kashmir valley between 1971 and 1981. In Badgam, the one district where the growth of the Hindu population was higher than that of Muslims, it was because the Kashmiri Pandits dominated areas of Barzulla, Rawalpora and Hyderpora on the outskirts of the city of Srinagar, had been transferred to the revenue district of Badgam.

According to the document, if the Government of India was engaged in a sinister plot to flood the State of Jammu and Kashmir with migrant industrial and agricultural workers, it would not have advertised it in the census figures. Another document, which is also being examined by the Government, has been prepared by the BJP unit in Jammu region. The Ministerial source told EXCELSIOR that this document has claimed that State support had led to the construction of more than 36,000 homes in Jammu by Muslim migrants during the past seven years.