Excelsior Correspondent
JAMMU, June 11: The Kashmir Chamber of Commerce and Industry (KCCI) has claimed that local industry in the Union Territory of J&K was facing worst ever period at present.
In a meeting of the KCCI members held with stakeholders belonging to the industrial sector in presence of Nasir Hamid Khan, senior vice president, KCCI, the representatives deliberated upon the various problems faced by the industrial sector.
Members stated that the local industrial sector was witnessing it’s worst period because of the withdrawal of support by the Government. The lack of budgetary assistance and abolition of toll tax without announcement of any substituting protective mechanism had severely impacted the local industry of Kashmir. Members complained that non-adherence to the industrial policy providing for price preference to local units, delayed reimbursements of CGST and SGST.
They further stated that major changes in Government policies like implementation of GST had resulted in aggravating the stress on the local industries and caused severe capital contraction. The financial institutions have not so far provided the needed support to help the industries tide over this crisis. Due to major accounts being under stress, borrowers are prevented from availing benefits of schemes including the new 20 lakh crore package announced by the Central Government as their stressed accounts debar them from qualifying for the guidelines.
Members raised the issues of disparities in the disbursal of reimbursement vide SRO’s 63, 519 and 521. They stated that the incentives tended to be more in favour of new units while the existing units were left in the lurch.
They urged the KCCI to ensure that the incentives and reimbursements needed to be uniform so that all local industries have a level competitive field. They suggested that interventions like providing of working capital at concessional interest rates, waiver of interest for the period of lockdown, re-scheduling of repayment plans, lowering of Power tariff and waiver of demand charges, reduction of SIDCO/SICOP rental charges, were required to provide breathing space to the local industries.
Members pointed out that corporations like SIDCO, SFC, DFC needed to be reinvigorated to provide the necessary support to the local industries. The absence of fully functional offices of important institutions like the SIDBI and NABARD in Kashmir was a cause of concern. Members dealing in the food processing industry said that the absence of a common testing laboratory was creating difficulties in their sector.
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