Applications submitted for cancellation of allotted land
*Non-availability of incentives, subsidies main reason
Mohinder Verma
JAMMU, Oct 14: Just months after the cricket legend Muttiah Muralitharan Ceylon Beverages Can Pvt Ltd walked away from its Rs 1,650-crore project in Jammu and Kashmir, solar and textile giants of the country have also decided to pull out casting a long shadow over the Union Territory’s ambitious industrialization narrative.
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Official sources told EXCELSIOR that Grew Energy Pvt Ltd, one of the fastest-growing solar manufacturing firms reshaping India’s renewable landscape and RSWM Limited, the flagship company of the LNJ Bhilwara Group and a leading producer of synthetic and blended yarns, have formally applied for cancellation of the land allotted to them at the Bagthali Industrial Estate in Kathua district.
Grew Energy Pvt Ltd was allotted two patches of land—222 kanals for Unit-I and 434 kanals for Unit-II in the month of March last year as per the decision taken in the 5th meeting of the Apex Level Land Allotment Committee held on February 2, 2024. The land was allotted on a lease basis for a period of 40 years for manufacturing of solar wafer and ingots solar cells.
During the ground breaking ceremony of the company, it was stated that integrated manufacturing unit will come up at a cost of Rs 4500 crore and will give boost to the economy of Jammu and Kashmir. Further, it was announced that after completion the plant will have an annual capacity of producing 3.2 GW (gigawatts) of high-efficiency modules and 2.8 GW of ingots, wafers and cells.
Moreover, it was claimed that the Kathua facility will enable Grew Energy to meet the growing solar needs of Jammu and Kashmir, Ladakh and other nearby states.
RSWM Limited was allotted land measuring 275 kanals in the same Industrial Estate as per the decision taken in the same meeting of the Apex Level Land Allotment Committee for setting up of unit for manufacturing of textile.
“Both the groups have formally approached the concerned authorities in J&K Industrial Development Corporation (SIDCO) requesting for cancellation of land allotment orders citing various reasons particularly lack of subsidies and incentives from the Government”, sources informed, adding “these groups are of the opinion that in the absence of subsidies and incentives it would not be prudent for them to make huge investments”.
Even the legend cricketer Muttiah Muralitharan had backed out from over Rs 1650 crore worth investments in Kathua as incentives under National Sector Industrial Policy 2021 ended in September last year, have not been extended.
It is pertinent to mention here that under this policy no further incentives or subsidies can be given and the incentives being offered by the Government of Union Territory of Jammu and Kashmir are not sufficient enough.
“The applications of Grew Energy and RSWM Limited are being processed in the J&K SIDCO as per the laid down procedure”, sources said, adding “as per the terms and conditions of the lease deed 20% of the premium paid by these groups will be forfeited in case the land allotment orders are cancelled by the competent authorities”.
They further said, “the decision of these two major groups has served as a major blow to the plans of the Government of Union Territory about making J&K as hub of manufacturing”, adding “had timely incentives and subsidies been announced by the Government of India these companies would have started work on the ground. Moreover, these units were expected to generate employment for hundreds of locals”.
“The twin exits of Grew Energy and RSWM Ltd coming right after Ceylon Beverages’ withdrawal mark a turning point. What was once touted as the dawn of industrial rebirth in Jammu and Kashmir is now at risk of being remembered as a case study in missed opportunities”, sources said.
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