Not invited to Curtain raiser event of GIS, local industrial associations boycott interaction with MoS C&I

Harry Walia. Updated: 1/23/2020 9:52:32 AM Front Page

JAMMU: Upset over not being invited to the recently held Curtain Raiser event to the J&K Global Investors’ Summit at New Delhi, industrial associations of Jammu today boycotted interaction with Union Minister of State for Commerce and Industries, Som Parkash.
The Minister, who is in Jammu as part of Public Outreach Program, was to interact with local industrialists and representatives of traders associations, here at Udhyog Bhawan. However, many of them boycotted the event, including Bari Brahmana Industrial Association (BBIA).
Lalit Mahajan, president, BBIA, has regretted the rejection of the local unit holders from J&K for the Curtain Raiser event and hoped that in the next event they will be considered.
Pertinently, Curtain Raiser to the three day J&K Global Investors’ Summit was held on January 20, in a bid to attract potential and interested investors to be a part of the summit and bring investment to the newly formed UT of J&K.
Although, some of the industrialists present at Udhyog Bhawan today, did put forth their issues and proposed certain interventions for the Government of India to take into consideration while formulation of industrial policy for the Union Territory of Jammu and Kashmir.
Notably, Annil Suri, Gagan Jain, Rajesh Jain, Ravneesh Gulati, Rakesh Wazir, Rakesh Bhat, etc. participated as the representatives of local industries and traders during the interaction.
The industrialists informed the Minister that the Industrial Development Scheme (IDS) for J&K will end by March 31, this year and demanded its extension for next fifteen years.They also said that there is shortage of land bank in J&K and demanded creation of Special Economic Zones and Special Investment Regions like Food Parks, Technology Parks etc.
“Article 370 may have been abrogated but the ground reality for industries in J&K is still the same. We still face almost the same challenges we were facing before,” said one of the industrialists.
He added, “Industrialization came late to J&K. As such, we are the 1st or 2nd generation of industrialists. In all these 20-30 years, we have sustained, not grown or flourished.”
Another industrialist welcomed the abolition of Lakhanpur tax, but cautioned the authorities about its adverse effects too.
The industrialists demanded incentives for existing as well as new industries. “Fiscal incentives are required, as they are very essential for industries to come here and sustain. Otherwise, why would someone want to come here and invest, amidst the challenges that we have apprised you about? Incentives should also be made available for existing industries to help them grow,” they said.
Further, Rakesh Wazir, PHD Chamber, said, “Jammu has huge potential for tourism. When Vaishno Devi hosts crores of tourists every year, why do we not tap their visit, and take them to other sites of Jammu. Tourism promotion will help generate employment and revenue for Jammu and its people.”
He also mentioned that the benefits available to industries should also be given to service sectors.
“We are waiting for a fast train to run between Chandigarh and Katra,” he added.
Annil Suri, Former President, BBIA, Former Chairman, Federation of Industries Jammu, remarked that J&K needs Inland container depot, technology parks, freezing of power tariffs, and most importantly, ease of doing business.
“The central government should initiate by investing in J&K, say 5000 crores, to build confidence among private investors,” said one of the industrialists.
“Center should also consider certain products which would need additional incentives, such as Sapphire. The central industrial policy may not be sufficient to address their issues,” said an industrialist.
Among other issues, the industrialists took up with the Minister, includeturnover incentives, freight subsidy for transportation, 24X7 power supply to industrial areas, extension of 50 per cent capital investment subsidy for captive power projects, introduction of self credit scheme and insurance cover etc.
The session also discussed issues specific to pharmacy, walnut, carpet etc besides general issues.
Som Parkash assured the industrialists that all the issues flagged up by them would be given due consideration by the government and subsequently redressed.
He reiterated that Government of India would soon announce a comprehensive Industrial Policy for the newly created Union Territory of Jammu and Kashmir to attract huge investments to the region. He asserted that the policy would satisfy all the stakeholders and provide a level playing field for growth of industry.
"Central Government will extend all help to local industrialists to enable them to flourish and compete with other competitors by providing them level field," Parkash said and added that the people of J&K have strong will and determination to progress with rest of the country. “Due to several political and economic barriers, the people in the region, including industrialists, were deprived of avenues for growth and fast paced development,” he added.
The interactive session was also attended by Secretary Industries and Commerce, MK Dwivedi; Director Industries Jammu, Anoo Malhotra; Managing Directors of PSUs (corporations) and other concerned officers.
Speaking on the occasion, Secretary Industries and Commerce, MK Dwivedi informed the Minister that capping of incentives, particularly on plant and machinery, under IDS-2017 scheme needs to either be reviewed or removed for the larger benefit of industry in the UT.
Meanwhile, the Minister was informed that there are 25,735 Micro, Small and Medium Enterprises (MSMEs) registered in UT of J&K with Rs 8,208 crore investment and providing employment to 1,62.084 persons.
It was further informed that there are 64 large scale units in the region with Rs 12,146 crore investment and providing employment to 18,310 persons.
Earlier, the Union Minister inaugurated several development and infrastructure projects in Jammu City and its peripheries.


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