Merger of SIDCO, SICOP to establish JKIDC
Mohinder Verma
JAMMU, Aug 10: An ambitious decision to establish the Jammu and Kashmir Industrial Development Corporation (JKIDC) by merging State Industrial Development Corporation Ltd (SIDCO) and Small Scale Industries Development Corporation (SICOP) has been in limbo for nearly four years despite the formation of multiple high-level committees. What is most shocking is that the proposal has not even been discussed in recent months leaving the much-hyped industrial development plan to gather dust in official files.
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In September 2021, the Administrative Council gave nod to the establishment of J&K Industrial Development Corporation along with merger of SIDCO and SICOP in it and accordingly vide Government Order No.877-JK(GAD) of 2021 dated September 8, 2021 sanction was accorded to constitution of a committee for proposing roadmap for establishment of Jammu and Kashmir Industrial Development Corporation as per provisions of amended J&K Development Act.
On the recommendations of the committee the statutory and supplementary accounts of both the Corporations were audited, which were pending since 2012-13, and thereafter exercise was set into motion for completion of formalities with regard to human resource of the Corporations, their assets and liabilities.
Vide Government Order No.08-JK(IND) dated January 6, 2023, a committee was constituted for engagement of services of consultancy company/firm for working out modalities for incorporation of J&K Industrial Development Corporation by the merger of SIDCO and SICOP.
The committee was directed to facilitate in carrying out the technical evaluation based on the presentation as per the proposal submitted in response to the Request for Proposal (RFP). Moreover, the Member Secretary of the committee was directed to provide all details and Terms of Reference of the RFP to the committee in advance.
Thereafter, one more committee of officers was constituted vide Government Order No.126-JK(IND) dated May 24, 2023 for engagement of services of consultancy company/firm for working out modalities for incorporation of J&K Industrial Development Corporation by the merger of SIDCO and SICOP. The committee was directed to facilitate evaluation as per the proposals submitted in response to NICSI’s request.
However, even after the formation of committees, nothing concrete has emerged till date regarding the establishment of JKIDC, official sources told EXCELSIOR, adding “there are differing opinions on giving practical shape to the decision of the Administrative Council—some officers believe that creating JKIDC through the merger of two Corporations is a very complex issue, while others have suggested that these Corporations should instead be given equity in the proposed JKIDC”.
“Because of these differences of opinion, no discussion has been held on the subject during the past several months and practically file is lying unattended,” they further said.
Despite repeated attempts, Deputy Chief Minister Surinder Kumar Choudhary, who is also the Minister Incharge of Industries, could not be contacted to ascertain the reasons behind the delay in implementing Administrative Council’s decision and to know the political Government’s stand on the establishment of JKIDC.
The inordinate delay in setting up the Jammu & Kashmir Industrial Development Corporation comes despite the fact that it was envisioned to assist in the rapid and orderly establishment and organization of industries in the Union Territory.
At the time of the Administrative Council’s decision, it was stated that JKIDC would establish and manage Industrial Estates at locations selected by the Government; develop industrial areas identified for the purpose and make them available for undertakings to set up operations; develop land on its own for facilitating the location of industries and commercial centers; and undertake schemes to provide industrial units and commercial establishments with the structures and facilities necessary for their orderly establishment, growth and development.
Further, JKIDC was to have the powers to acquire and hold property-both movable and immovable-as deemed necessary for carrying out its activities, and to lease, sell, exchange, or otherwise transfer any property it holds on such conditions as it considers appropriate. It would also have the authority to purchase land by agreement, take land on lease or tenancy, erect buildings, and execute works necessary to fulfill its duties and functions.
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