Excelsior Correspondent
SRINAGAR, May 21: Minister of Finance, Culture and Labour & Employment, Dr Haseeb Drabu, today said the State Government is working out modalities with the Government of India for the return of two power projects from NHPC.
“The State Government is working out modalities on how to get at least two power projects from NHPC. Several discussions have taken place between GoI and J&K government on the issue and there is a broad-based consensus at the highest level,” Dr Drabu said.
The Finance Minister said the transfer of power projects has been under discussion for the last decade or so and it has been backed by recommendations of the Working Groups appointed by the Prime Minister as well as PM’s high level Task Force on J&K headed by former RBI Governor Dr C Rangarajan.
He said the J&K Government is working to evolve a model in which the power projects can be transferred without affecting the market value and shareholders of NHPC, a listed company which manages the projects in the State.
Meanwhile, ahead of the J&K Assembly Budget Session 2016-17, Dr Drabu held a series of marathon meetings with the representatives of business bodies of Jammu and Kashmir.
The Finance Minister said the State Government has put the New Industrial Policy on hold following the directions of the Chief Minister Mehbooba Mufti and the policy will be revised in accordance with the special status of Jammu and Kashmir.
“Following the directions of the Chief Minister, we are working on a comprehensive roadmap to be incorporated in the Budget 2016-17 aimed at promoting and expanding the industrial activity in J&K in tune with the State’s distinct features,” he said and added that the Government will try to come up with some key measures in the budget for industrial development in conformity with J&K’s development needs and socio-economic objectives.
“The Government mulls measures aimed at improving the competitiveness and capabilities of local entrepreneurs and promoting structural transformation in the industrial sector,” he said and added that the Government had envisaged a policy to hand over industrial estates to industry associations with a proper corporate governance structure. We need business bodies to augment the efforts of the State Government so that we can expand the industrial landscape of the State,” Dr Drabu said.
The Kashmir Chamber of Commerce and Industry (KCCI) expressed concern over the likely implementation of the new GST regime, which is awaiting nod of the Parliament, some components of the Flood Rehabilitation Package and streamlining of the Commercial Taxes Department.
The Minister said the Government is also contemplating shifting of toll plaza for Kashmir bound trucks from Lakhanpur to Lower Munda which will ease the businesses operating in the Valley.
The KCCI delegation also urged the Minister that the new budget should focus on Handicrafts, Horticulture, Food Processing Industry and Tourism which form the backbone of the state’s economy.
The Jammu Chamber of Commerce and Industry (JCCI) urged the Minister to remove SRO 105/117 (Dated 31-03-2015) which charges 12 percent tax from the advertising agencies.
Dr Drabu gave them a patient hearing and assured them that their genuine concerns will be incorporated in the budget.
Meanwhile, a delegation of Kashmir Hotel and Restaurant Owners Federation (KHAROF) apprised the Finance Minister about the problems faced by the hotel industry following the September 2014 floods.
The industry leaders claimed that many uninsured hotels were damaged during the floods with the hotel industry alone suffering losses of more than Rs 100 crore. They urged the Finance Minister to continue with the waiver of 12 percent service tax on lodging in the next budget.
Dr Drabu said the hoteliers in the Valley must modernize the infrastructure to attract top-end tourists. He said the State Government has announced interest subvention for all traders, including hoteliers, who were affected by the deluge.
A delegation of J&K Information and Communication Technology Association also briefed the minister about the problems faced by the IT entrepreneurs in Jammu and Kashmir.
Highlighting a series of measures envisaged by the state government for promotion of IT industry, they urged the Finance Minister to push these initiatives and set aside some funds for the promotion of the industry.
The Finance Minister said the government is contemplating to set up an IT Park and the creation of a ‘Brand Fund’ which will enable the Government to invest through PPP mode in some of the IT companies.
“There will be institutionalization of the promotion of IT industry but we first need to look at the functioning of the IT Department. Every Government Department should have an IT cell which will automatically promote the industry,” he said.
A delegation of Federation Chamber of Industries Kashmir (FCIK) apprised the minister about the problems faced by industry owners while doing business with the Government.
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