JAMMU, Mar 6: Bari Brahmana Industries Association (BBIA) has alleged that the industrial growth has been stalled in J&K due to total neglect on the part of `people at the helm of affairs’ in the Govt.
In a meeting of the BBIA held today under the leadership of Lalit Mahajan, in presence of Suresh Mahajan, Varun Singla, Ajay Langer, Vivek Singhal, Viraaj Malhotra and others, the members discussed the sharp decline reported in the Industrial growth since July 2017 in post GST regime due to non- availability of State fiscal incentives in manufacturing sector to new units and units under substantial expansion.
Chairman Federation of Industries Jammu and president Bari Brahmana Industries Association lauded the State Administration for the grant no objection for the Fiscal incentives to the working existing units prior to GST Regime and also for the extension of Central package of incentives to new units and units under substantial expansion.
It is pertinent to mention here that no State fiscal incentive was given to units established after the implementation of GST since July 2017 resulting the present Industrial growth at the lowest level in last two decade whereas prior to GST Regime, the popular Govt provided State/Central fiscal incentives in the tune of around Rs 1700 to 2000 crores per annum since 2002 keeping in mind the locational disadvantages, higher production cost, limited market avenues in the State due to land locked state, militancy since three decades and other related issues.
Mahajan said before implementation of GST it was assured that all the State/Central Govt incentives in the tune of Rs 1700 to 2000 crores shall be continued in the GST Regime but it is unfortunate that in post GST Regime the State/Central Govt incentives reduced to even 1/4th of the total incentives available to Industrial Sector of J & K. The position is more serious as very limited growth reported in last two years in the Industrial sector due to non availability of State fiscal incentives.
Recently State Govt granted the State fiscal incentive for the reimbursement of SGST to those new units and units under substantial expansion with the investment above 50 crores whereas no such incentive was given for existing MSME units under the substantial expansion and new units mostly being run by sons of the soil which we term as discrimination with the MSME Sector who are willing to establish their units with the Investment less that Rs 50 crores.
The BBIA appealed to the Governor, his Advisor and Naveen Choudhary, Principal Secretary, Industries & Commerce to intervene in to the matter and grant 100% reimbursement of CGST/SGST for the sale of goods within the State, 2% Fiscal incentive on the interstate sale of finished goods to other part of the country and export w.e.f. 01-04-2017 to all the existing units and new unit. They also demanded that the freight transport subsidy incentive by road should be given upto destination instead of “Beyond 1000 km ” to all the existing units and unit under substantial expansion.