Excelsior Correspondent
JAMMU, Feb 1: The Union Budget has evoked mixed response from various trade, industries and other organizations in the J&K State.
The president, Kashmir Chamber of Commerce and Industry (KCCI), Javid Ahmad Tenga while reacting on the Union Budget said that there is nothing Jammu & Kashmir specific in this budget.
“We were expecting the Union Finance Minister to make necessary provisions in this budget to bear the cost of return of J&K based Power projects by NHPC to the State and as a part of compensation for Indus water usage,” he added.
“The Kashmir Chamber of Commerce & Industry has long been demanding for provision to be made in the Union Budget for investment insurance to provide security for the investment made by the outsider investors in Kashmir, as it being conflict zone, the investors are not otherwise willing to invest in Kashmir. It needs to be mentioned that the Kashmir suffered massive business/ infrastructure losses in 2014 floods; the State Government gave a preliminary estimate of losses to the tune of Rs 44000 crores to Union Government so as to ensure rehabilitation of business and other activities but to our dismay nothing towards that has been provided in this budget. We, however, appreciate the provisions made for the Health and Education sectors of the country,” Tenga maintained.
Chamber of Commerce & Industry, Jammu president Rakesh Gupta in his reaction to the Union Finance Minister’s Budget 2018 speech said that it was a welcome step towards overall development and GDP growth of the country with respect to the provisions in the budget to take care of various developmental project but the Chamber feels totally dejected that two main areas were not covered in this budget.
The JCCI president said that J&K enjoys special status in the Constitution of India which is being ignored and shall lead to further deterioration in the growth and law and order situation in the State.
Gupta claimed that a special package for industries in J&K on the pattern of North Eastern States was much expected in the Union Budget 2018 as J&K having two hostile neighbouring countries cannot expect the business people from rest of India to invest in the industrial sector in J&K State and it was only the business people of J&K who are interested to invest more and more in the industries. This is only possible if special packages and incentives are announced on the pattern of North Eastern states which would lead to job creation in the State and economy growth.
He further said that special social security provisions should have been announced for the tax payers of the country which could have encouraged more people to participate in paying taxes and at the same time take care of the existing tax payers.
Bari Brahmana Industries Association (BBIA) led by Lalit Mahajan showed great resentment towards the Union Budget presented by Union Finance Minister in which the industrial sector of J&K has been totally ignored while announcing the budget for the FY 2018-19.
“We appreciate the focus of the Govt for the creation of requisite infrastructure which includes the road connectivity, telecommunication network, skill development programme to develop the rural areas of the country which will provide the opportunities to the youths of the rural areas to start their own business which will also reduce the burden on the urban areas but at the same time, it has been observed that the industrial sector of J&K has been totally ignored while announcing the budget proposals in spite of our repeated representations given for the grant of Fiscal Incentives which includes the Income Tax Holiday and other Incentives to attract the new investment in the State,” Mahajan maintained.
BBIA chief said that with the economic drawback arising out of locational disadvantage, surrounded by hostile neighbours like Pakistan & China, remoteness and poor connectivity, hilly terrain, poor infrastructure and shallow markets along with the factors like additional cost of the raw material and dispatch of finished goods to other parts of the country resulting higher cost of production & other related expenses due to under utilization of production capacity which has resulted in low economic activity, low employment and low income generation resulting all these issues added to our woes, shrunk our market and considerably weakened the Industrial Sector.
It was further resolved that on one side Govt of India has earmarked huge funds for skill development of the youths but on other side no incentives have been given to the Industrial Sector of J & K resulting the flight of skill from the State to other parts of the country.
In respect of huge funds amounting to Rs 3794 crores have been allocated to MSME Sector, Govt of India should earmark funds for the Fiscal Incentives to the Industrial sector of J&K which will attract the new investment in the State. It is need of the hour to provide the fiscal incentives by the Central Govt to all the existing units, units under substantial expansion and new units to attract new investment in the Industrial sector which will open the avenues to absorb the local youths.
Kanak Mandi Traders Association Jammu has welcomed the Union Budget and congratulated BJP for taking care of farmers and middle class people. It said provision of Health insurance is the need of the hour and it will be beneficial for all. The budget will boost the economy of the country and reduction in Excise duty on petroleum products shall decrease the inflation. It said the traders community expect change in Income Tax slab and pension scheme for the traders under GST and a free health insurance.
Jammu West Assembly Movement led by Sunil Dimple has termed the Union Budget as anti-poor and anti-people. He alleged that there was nothing for the general people and it has disappointed the large masses including traders, industrialists, farmers and others.
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