Gopal Sharma
JAMMU, Aug 13: Scores of Industrial units at Bari Brahmana, Samba and Kathua are planning to wind up their operations as the Central and the State Governments have maintained silence over the continuation of the incentives (Industrial package) to the Industry in the Jammu and Kashmir, after implementation of GST in the State.
At SIDCO Complex, Samba, about 90 % of the units belonged to the investors from outside the State while in Bari Brahmaman Industrial area, their percentage was around 30 to 35 %. In Kathua also, more than 70 % units belonged to promoters from outside the State. In view of the tax concession to the industry, many industrialists from Maharashtra, Gujarat, Delhi, Punjab besides other States have set up their units in the State.
They are providing huge employment to the local youth besides workers from outside the state. With this, thousands of workers may lose their job. The Government is still silent on the issue and is not coming out with any fresh notification over the subject. A top official in the department of Industry and Commerce indicated that Centre may not continue with the concessions to the Industry in the State.
Federation of Industry Jammu (FOIJ), Bari Brahmana Industries Association (BBIA) and Chamber of Commerce and Industry (CCI) have reminded the Government to fulfill its promise to continue industrial concessions in the J&K state, after the implementation of Goods and Services Tax (GST) in the State.
The heads and representatives of these organizations said that before the implementations of GST, the State Chief Minister Mehbboba Mufti, Dy CM Dr Nirmal Singh, Finance Minister Dr Haseeb Drabu, Industry and Commerce Minister CP Ganga and many top Government officials had assured that Industrial incentives will continue even after implementation of Good and Service Tax in the state but now, they all have gone silent over the issue.
The industrialists fully supported the Government on GST. Now, when the GST has been implemented in J&K amidst controversies, the Ministers and bureaucrats have gone silent. A few of them are still giving just assurances but on ground nothing is visible. The industrialists are confused and feeling helpless.
Lalit Mahajan, president Bari Brahmana Industrial Association (BBIA) and co-chairman of FOIJ said that during meetings with the Chief Minister Mehbooba Mufti, DyCM Dr Nirmal Singh, Finance Minister Dr Haseeb Drabu and Industry Minister Chander Parkash Ganga, it was promised to the Industrial bodies that Industrial concessions being provided by the Centre to the J&K will continue.
They had also assured to take up this issue forcefully with the Centre and it was also communicated during a later meet that Centre has agreed on the issue. But till today, no notification has been issued. August 20, 2017 is the first date to deposit tax but till today, the picture is not clear. Many, industrialists from outside the state are planning to wind up their units as there is no response from the Government. He demanded that Government must fulfill its promise and come out to the rescue of Industry in the State.
Rakesh Gupta, president Jammu Chamber of Commerce and Industry (JCCI) said that it was promised by the Government to continue with the industrial incentives in the State even after implementation of GST here. During couple of meetings with the Government including CM, FM and DyCM, it was clearly agreed that concessions will continue. During a recent meeting also, the Finance Minister assured that notification is coming out shortly. It is hoped that Government will fulfill its promise, Gupta added.
Vijay Aggarwal, president Association of Industries SIDCO-Samba said about 90 % of the units at Samba belonged to people from outside the State. They are providing employment to about 35,000 youth here. The industry is in crisis and if they will shift to outside the State, many people will lose their jobs. Moreover, the industry had also suffered losses during GST implementation in the state. Many units have already curtailed their production and others are suffering badly due to delay being caused by the Government. They have only given assurances till today.
Sandeep Mittal, general secretary Kathua Industries Association said that for the last one and half month only assurances have been received from the State Government. The industry is suffering heavy losses. Many units have partially shifted and others are in the process.
He said Kathua units including CTM are providing employment to about 50,000 youth. It took to the previous Governments to establish industry in J&K about two decades but now with the wrong policy of this Government, the Industry is going to suffer badly in the State. About Rs 500 crore losses in terms of labour component, bank interests and power tariff have been suffered by the Industry here. The Government must come out with the necessary notification. Their silence is leading the J&K industry towards crisis, Mittal maintained.
Minister for Industry and Commerce, Chander Parkash, when contacted, said that State Government has already taken up this issue with the Central Government forcefully. ” We can only request them. It is within their domain to issue notification. I personally went to Delhi twice and projected the issue with Union Industry Minister and also MoS. We hope the notification will be issued shortly. Even during recent meeting with the Finance Minister at Jammu a week back, the representatives of the industry were told clearly about it. The Government was seriously pursuing the mater,” the Minister maintained.
Follow our WhatsApp channel