*Rs 100 cr SGST claims lying with treasuries: I&C Deptt
Gopal Sharma
JAMMU, Oct 15: The Government has failed to clear the pending incentives worth over Rs 250 crores of the industrial unit holders in the Jammu and Kashmir while with the new Industrial package worth over Rs 28400 crore, the existing units, mostly belonging to the local industrialists, have remained without benefit.
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While projecting the sorrow state of affairs in the J&K Industry, Federation of Industry Jammu (FOIJ) , Bari Brahmana Industries Association (BBIA) and Association of Industries Gangyal, said that scores of units have been closed while many are at the verge of closure with the indifferent attitude of the J&K Industries department and the JKUT administration. Even the Union Government was not serious in resolving their pending issues, they alleged.
They said Government claims to have provided Industrial Package worth Rs 28,400 crores to the Union Territory of Jammu and Kashmir, but actually no benefit has been provided under this package to the existing industry, units under expansion, which mostly belonged to the sons of the soil. They said 67% of this package has been provided to just 3% of the Medium Industry that too from outside J&K and just 33 % of the remaining package to 97 % of the Industry.
Giving details of the pending claims of the J&K industrialists, Chairman of the FOIJ, Virender Jain said claims worth over Rs 250 crores are currently pending with the Government, belonging to the Industrial units holders in the JKUT, which includes GST reimbursement, Turnover incentives, capital subsidy etc. He said despite repeated written reminders and verbal requests to the concerned officers, LG Manoj Sinha, CM Omar Abdullah and Dy CM Surinder Choudhary, the authorities failed to clear the much delayed pending claims of the Industrialists.
Jain said at present the fiscal incentive for Existing Industries has been reduced from about Rs 2000 crores to nearly Rs 500 crores out of which Rs 50 crores allocated for the turnover incentive as per the Industrial Policy 2021-30 but for the FY 2021-22 the actual disbursement made was only for Rs 28 crores against the submission of claims of Rs 207 crores which is equal to the 14% of the claims submitted by the working Industrial units as on March 31, 2021. Moreover, the claims for the period of 2022-23/2023-24 are pending with the Department with the sanction of Budgetary allocation but the Industries Department failed to release the amount.
He said in respect of GST reimbursement claims, the liability of Jammu Province is over Rs 100 crores with regard to claims submitted by the existing units, sanctioned claims of nearly Rs 42 crores for the period ending March 2025 pending with the Additional Treasury Gandhi Nagar Jammu since long awaiting the release of funds by the Finance Department. Moreover, the claims amounting to Rs 60 crores already submitted by the unit holders to State Tax Department for June 2025, resulting Rs 100 crores of Industrial units blocked with the Finance Department.
Jain alleged ‘Ease of Doing Business’ initiative of the Union Government has turned as ‘mere slogan’. Over 50% of the Industrial units, mostly of the locals, have closed down after the introduction of GST regime and GEM portal in the region. Out of the 40 sports goods manufacturing units, 33 have also been closed.
BBIA president, Lalit Mahajan said with the introduction of GeM Portal and withdrawal of purchase/price preference for local MSME units, the local industry has suffered massive losses, leading to closure of many units. Before the introduction of GeM, the approximate turnover of SICOP was Rs 800 crores resulting the SICOP also heading towards huge financial crisis.
Mahajan said uncertainty prevails in the mind of over 600 industrial units of prospective investors with the majority of MSME existing units working since last 20 years and applied for the setting up of new units or under substantial expansion to meet the stiff competition with the new units. Out of these above units, 205 units owned by local prospective investors, also include the units under substantial expansion, who have applied on the NCSS portal well in time for the grant of registration before Sept 30, 2024 under the Budgetary allocation of Rs 28400 crores, are still waiting for the grant of registration under the NCSS-2021 Scheme to avail the benefits.
A senior official in the Department of Industry and Commerce on the condition of anonymity said that incentives of the industrial unit holders have been blocked due to the non-availability of the funds with the Treasuries. In some cases, their claims have yet to get clearance from the Finance department.
Replying to a question, he said during this financial year provision of funds worth Rs 50 crores out of the budget, was kept for the disbursement to the industrialists. Funds to the tune of about 42 crores pertained to the Jammu based industry while rest of the amount belonged to the unit holders in Kashmir. Out of this amount, funds worth Rs 22 crores stand released. Rest of the amount will also be cleared but the problem is being faced by the Unit holders at Treasuries level.
“Funds to the tune of over Rs 100 crores of SGST claims are pending with the different Treasuries. On our part there is no delay. We process the cases and forward to the Finance department. When the funds will be made available, they will certainly get their pending dues,” the officer added.
Responding to yet another question, the officer admitted that due to withdrawal of purchase/ price preference and provision to supply products manufactured by local units to the J&K Government departments, many units have been struggling and facing closure. SICOP has also gone into crisis with it.
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