FoIJ demands Ancillarisation Policy to protect local units

Excelsior Correspondent

JAMMU, Dec 25: Lalit Mahajan, Co-Chairman Federation of Industries Jammu & President Bari Brahmana Industries , has demanded the implementation of Ancillarisation Policy by the Union Territory of Jammu & Kashmir for providing due share in the purchase of raw materials & packaging materials from the local micro & small scale units by the medium & large scale units working at present.
“After the removal of Toll Tax w.e.f. 01-01-2020, uncertainty prevailed in the mind of local Micro & Small Scale Units in respect of purchase of raw materials/packaging materials by Medium & Large Scale Units established in the State from local SSI Units as it has been brought to our notice that number of units are in the process for the purchase of raw materials and packaging materials from outside the State which will be a setback to the local units,” he said.
The Ancillarisation process was started in the country simultaneously with the Govt setting up enterprises almost in all the core sectors. The large Industries and other Public Sector undertaking (PSUs) started sub-contracting the standard and low technology items to the local Small-Scale Industries which developed a sound base of Ancillarisation, helped proliferations and development of MSME Sector.
“We strongly support the concept of Ancillarisation in private sector also which will prove a milestone in ushering in an era of sub-contracting amongst the Industries located in J&K which will increase the avenues of the employment also,” said Lalit Mahajan, adding that it is a need of hours for the adoption of Ancillarisation Policy by the Industries Department to protect the interest of the local Micro & Small Scale Units engaged in the manufacturing of quality products of packaging material and other related Industrial products required by the Medium & Large Scale Industrial Units of J&K.
FoIJ appealed Lt Governor Manoj Sinha and Ranjan Prakash Thakur, Principal Secretary, Industries & Commerce Department for the adoption of Ancillarisation Policy for the development of Micro & Small Scale Sector in J&K and stressed that it should be obligatory for Large & Medium Scales Units to procure 60 percent of their requirement of raw material & packaging material from local SSI Units who are manufacturing quality products in the Union Territory.