Excelsior Correspondent
JAMMU, Feb 20: Bari Brahmana Industries Association (BBIA) has urged upon the Government to save the existing working industrial units of J&K UT from closure.
In a meeting of the Association was held today under the presidentship of Lalit Mahajan, Chairman Federation of Industries, Jammu in presence of Tarun Singla senior vice president, Ajay Langer vice president, Viraaj Malhotra general secretary, Rajesh Jain secretary, Vivek Singhal – treasurer and other members of the Association to discuss the notification issued by Ministry of Commerce & Industry, in respect of “Industrial Development Package-2021” for J&K Industrial units.
While going through the Notification No. F/1(1)/2020-SSS dated 19-02-2021 issued by Ministry of Commerce & Industry, Govt of India, members present in the meeting raised serious concern over the uncertainty prevailing in the mind of working MSME Micro and Small Scale Industrial Units of J&K due to inadequate Fiscal Incentives granted with the denial of reimbursement of Gross GST to existing units and units under substantial expansion as per the said Notification due to which unhealthy competition may be faced from the new investors in J&K who will get the benefits of Gross GST reimbursement of 300% on the investment of plant & machinery.
It is worthwhile to mention here that majority of the MSME Units set up by the sons of the soil working in the State facing militancy since last 30 years, with limited marketing avenues, higher production cost and keeping in mind the above facts, the Central/State Govt provided fiscal incentives from time to time but with the introduction of GST, the fiscal incentives of State as well as Central Govt has been diluted in post GST regime and only Incentives of IGST/CGST/SGST Refund on the value addition was given w.e.f July 8, 2017 to existing units.
Moreover, no State fiscal incentive available to units set up after July 8, 2017 resulting very limited growth reported against the IDS-2017 Scheme announced by Govt of India. “We fear that the working existing Industrial units may opt for the Closure of their Units in future due to non- availability of Central Govt Fiscal Incentives as per with the Industrial Development package 2021 for New Units which may be resulting into mass scale retrenchment of local Industrial workers,” they added.
“We also wish to draw the kind attention of Lt. Governor that no Fiscal Incentive provided to the New Units on the Working Capital Loan in the said Scheme whereas as per previously announced press statement of State Govt the Interest aubvention of 5% on the working capital to new units also was the part of the package of incentives,” they maintained.
BBIA demanded road freight reimbursement on the import of raw materials from outside the State and Export of finished goods to other part of country, turnover incentives to all the units selling their products within the UT of J&K, budgetary support of 2% turnover on Interstate sale to all the units as marketing support as per SRO 431 without any riders of 2016-17 sale besides CGST/SGST reimbursement benefits to existing units, units under expension, new units and the units covered under SRO 519/521 whose residual period is going to be expired in near future.
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