Excelsior Correspondent
JAMMU, Oct 24: Federation of Industries Jammu (FoIJ) has urged upon the State Administration and the Union Government to release fiscal incentives in favour of the industrialists of the State for the growth of the industry and employment generation in the State.
Chairman of the Federation, Lalit Mahajan in a press statement here lauded the efforts of the State Administration for taking up the issue with the Union Home Minister during his visit to State on Tuesday for the extension of Fiscal Industrial Incentives package at par with North Eastern states.
Mahajan raised serious concern in respect of sharp decline reported in the Industrial growth of J&K due to non- availability of Post GST Central/State Fiscal Incentives to the new units and units under substantial expansion. He said the position is more serious due to reduction in the fiscal incentives available to the working units in post GST regime as compare to the fiscal incentives in Pre GST Regime resulting number of MSME Units are on the verge of closer and were in the process of shifting to other parts of the country.
The chairman referred to the growth recorded in the last three years in the Industrial Sector of Jammu province and said that during 2015-16, 226 units were registered and 2915 locals were provided employment; during 2016-17 253 units were registered providing jobs to 2830 youth while during 2017-18 just 209 units were registered providing jobs to only 2641 youth.
” It is worthwhile to mention here that the Industrial Estates developed in our State with the investment of crores of rupees by the Industries department is lying vacant due to non -availability of investors in our State,” Mahajan said.
He said the position is more serious in respect of 7000 to 8000 Micro and Small Scale Units working in our State, as in post GST Regime limited incentives were given by the State Govt to existing Micro and Small Scale Units who are not availing the Central Excise benefits prior to GST regime due to exemption up to 1.50 crores turnover. It is worthwhile to mention here that the majority of Micro and Small Scales Industrial Units owned by sons of the soil are working in spite of all the odds since last 30 years facing the militancy, limited market avenues.
“Our request for the grant of fiscal incentives to Micro & Small Scale Sector for the reimbursement of 42% CGST & 5% Budgetary support to compensate the short fall of incentives prior to GST is pending with the State Govt since long & any delay on the part of State Govt to provide above mentioned incentives to the Micro & Small Scale Sector may lead to the closure of number of units resulting in mass scale retrenchment of Industrial workers,” he added.
FoIJ sought intervention of Governor in this regard.
Follow our WhatsApp channel