Adil Lateef
Srinagar, June 24: Finance Minister, Haseeb Drabu, today said the Government dropped a “contentious clause” from New Industrial Policy as it had the “potential of misuse” and after host of reactions from industry associations, stake holders and the civil society.
“The issue here arose because in the Industrial Policy, a reference was made to non-state subjects being permitted to acquire industrial estates, develop private estates. The industry associations, stake holders, the civil society and a whole host of reactions came on one specific clause. That was a contentious clause,” he said while speaking during Zero Hour in the Legislative Council.
“The thought behind it was that since Government estates have no infrastructure, no facilities, so the intention of the Government of the time was to give industrial estate to private investment so that there is infrastructure and the units in that estate can be local or from outside and it would function as a regular industrial estate”, he said.
“However, that had the potential of misuse, which was pointed out also by Finance (Department) that when they give incentive, they give unit incentive and if the investment comes in the industrial estate, it will become free for all and hence, a relook was required. There was a need for an amendment, which we brought through a Government order dropping that one para and substituting it with that the private industrial estates will be open to local industrial associations,” said the Minister for Finance.
“There have been demands for last 10 years from associations like KCCI and FCIK or other industry bodies. So, we thought if they are told to develop the industrial estate, they will develop it on private lines and an industrialist will get a defined space. The rules, which have been in vogue, that Government will do land acquisition, they will lease it to associations and then the units will be setup accordingly. It will be an ease,” he said.
The Finance Minister said when a better industrial estate is built then naturally better units would be established and “that is the way to bring private investment for building infrastructure”. “We have elaborated this further, which has not come in the policy yet, but those regulations will come in the future, that every industrial estate will remain under the supervision of their corporate body and all the units will become stake holders”, he added.
“You will take some fee from them, there will be a measured committee and develop the whole infrastructure be it roads or power, because we have seen the Governments, for the last 40 years, have not been able to give infrastructure or required standards. This is the way to bring local, private investment for building infrastructure. When a better industrial estate is built, naturally better units will be established,” he said.
The Minister said: “So, this was one of the reasons why were we trying to do this and that is how the amendment has been brought in there and the non-state subject has been deleted and it has been restricted only to local industrial associations.” He said the Industrial Policy, since 1960, has allowed non-state subjects to set up units in the State and “there is no bar on it”.
The Minister’s statement with regard to rollback of controversial clause came after Opposition demanded a statement from Government over the amendment and asked what prompted it to amend it. Subsequently, the Chairman Legislative Council Anayat Ali had on Wednesday directed the Government to make the statement on the reasons of the amendment.
The Minister said the Jammu and Kashmir is an important State and as an important State it must participate in the Goods and Service Tax (GST). “Also there is a larger point: it’s useless to form a new Industrial Policy this time, if you think in long term because after 6-8 months, GST is coming. Till there is no clarity in GST and till it doesn’t get clear how GST would be applied in J&K, whether to impose or not, we don’t know even that”, he added.
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