In a recent meeting the Federation of Industries Jammu discussed the issue of non release of Rs 60 crore against sanctioned incentives of industrial sector by Department of Industrial Policy & Promotion (DIPP), Government of India pending since 2015. It protested against callous indifference of the authorities of the DIPP saying that long pending payment of incentives has caused serious financial losses and burdens on them in the shape of blockage of huge amount of industrial units in respect of sanctioned claims of Capital Investment Subsidy, Interest Subsidy & Insurance Subsidy. They are not able to clear the installments of Term Loans, Blockage of Working Capital Limit & piling up of huge amount of interest accumulated.
This is not a healthy sign about strengthening industrial growth in the State. The government is making tall claims that it is deeply interested in giving incentives to the industrial sector as it helps in the growth of economy. Against this, the delay in payment of incentives as accepted under the procedure means that some of the industries that are not able to sustain in face of accumulation of loan interests and would be too close to be declared defaulters by the banks. They will be forced to retrench their staff which is very unjust.
Since this is a matter in which the Jammu industrial organization and the Government of India (DIPP) are involved, we would suggest that the State Department of Industries and Commerce should intervene without loss of time and try to find out an amicable solution of the matter. The Department should perform its role because ultimately it is a matter that pertains to the State and its industrial community. Common sense says that the industries should be given more incentives to grow and become contributor to the economic well being of the State. But instead of that, what is actually happening is that the industries get discouraged. We hope that the Minister Incharge of Industries will take up the issue with the central authorities as early as possible.