Excelsior Correspondent
JAMMU, May 9: Chairman Federation of Industries, Jammu (FoIJ), Rattan Dogra has expressed strong resentment and anguish over the total neglect by the State Govt to address the most genuine grievances of local small scale industrial units.
In a press statement here today Dogra said after the adoption of GST regime by the State Govt Association of Industries had drawn the attention of the previous Govt and also present Governor’s Administration to take effective remedial measures to restore the competitive edge that existed in VAT regime. He said AOI has reasons to believe that local Micro/Small units are deliberately been penalized as almost entire segment of Micro/Small units, is promoted by ‘ sons of soil’ who provide employment to the local populace.
He said FoIJ further believes recent State Govt announcements to attract fresh investment of huge capital investment of over Rs 50 crores in single unit , shall only be instrumental of further neglect of existing local Micro/Small sector as such units if at all consider to establish their manufacturing base in the state, are likely to bring along vending units of their own choice and preference from outside the state. Moreover, the manufacturing process of such envisaged units shall be based upon technically more advanced and modern plant and machinery operated by highly skilled and trained manpower which the state is unable to provide due to lack of adequate matching training facilities through its existing institutions as such local populace shall not at all be able to be considered for employment in such units.
Dogra further said that Govt of India through its various notifications has taken care of about 400 units. The State Govt has also provided matching fiscal incentives to adequately compensate such units whereas, more than 6000 units have not been considered for any compensation both by State/Central Govts. Prior to the adoption of GST regime, the State Govt was providing fiscal incentives ranging between 1600-1700 crores per annum as a measure of providing competitive edge to local industrial sector.
FoIJ chairman said State Govt functionaries unanimously assured to continue to provide Fiscal incentives even after GST regime. The Micro/Small sector fully supported the adoption of GST despite stiff resistance by the local trading community. The then Financial Minister had also specifically assured to raise the bar of fiscal incentives beyond Rs 1700 crores even upto Rs 2000 crores since J&K being consuming State was likely expected to generate more revenue after GST regime.
Dogra alleged that local small units are being given step motherly treatment as there is no set of incentives either for existing or ensuing units. Entire focus of the Govt is upon providing Fiscal incentives to selected few units of their blue eyed boys and promote their vested interests which has been provided in 2% equivalent of CST and transport subsidy beyond 1000 kms which local Micro/Small units exporting their products to neighbouring states have been vehemently denied the declared incentive which benefits only a handful of units whereas the total fiscal liability of the entire Micro/Small units might not exceed Rs 150 crores per annum for over 6000 units to restore their competitive edge.
Dogra invited the attention of Governor and Advisor Industries and Commerce and Finance Department to personally intervene into the matter.
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