Excelsior Correspondent
JAMMU, Apr 13: Federation of Industries Jammu (FOIJ) has said that industrialists are very disturbed on the casual attitude of the Govt towards existing industry as it is running under stress due to non-availability of urgent incentives in J&K.
In a press statement, Virendra Jain, Chairman, FOIJ urged the Govt to consider the issues being faced by the Industry of J&K so as to save it from total collapse.
While demanding restoration of fiscal incentives, FOIJ Chairman noted that prior to GST implementation, industrial units used to receive substantial benefits through VAT remission, CST exemption, Toll Tax exemption and Excise refunds amounting to approximately Rs 2000 crore annually. Post GST, these benefits have significantly reduced to around Rs 300 to Rs 350 crores, adversely impacting industrial viability. Jain urged the Govt to provide budgetary support through reimbursement of SGST, CGST, IGST, working capital interest subvention and turnover incentives.
Referring to extension of turnover incentive period, Jain said the existing Turnover Incentive Scheme effective from April, 2021, expired on March, 2026, providing limited relief. He requested an extension of this incentive for an additional five years to prevent industrial closures.
FOIJ Chairman further demanded extension of SGST reimbursement benefits under SRO-63 to units undertaking expansion/diversification/additional line of activity without imposing restrictive conditions. As the Central Interest Subvention Scheme expired in March, 2026, Jain requested the J&K Govt to provide 5% interest subvention on working capital loans for existing industries for another five years.
While referring to marketing support and procurement policy reforms, Jain raised concerns over reduced procurement opportunities due to changes in the Govt e-Market place (GeM) system. He emphasized the need to restore purchase preference policies for local industries. He further demanded power amnesty and tariff relief for the industrialists.
FOIJ leader highlighted the long pending demand for conversion of leasehold industrial land to freehold which would improve access to finance and support Industrial expansion. He cautioned that without timely intervention, many industrial units may be forced to shut down, leading to large-scale unemployment and economic distress in the region.
Federation Chairman requested the Lt Governor Manoj Sinha, Chief Minister Omar Abdullah and Dy Chief Minister, Surinder Kumar Chowdhary, In-charge Minister Industries and Commerce to come to the rescue of existing Industrial sector of J&K.
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