Industrialists appeals PM to save MSMEs

Development package

Jammu: Expressing unhappiness over the recently announced industrial package for the Union Territory of Jammu and Kashmir by the Union Ministry of Commerce and Industries, industrials of Jammu on Monday appealed to the Prime Minister Narendra Modi to save Micro Small and Medium Enterprises (MSMEs).

“As per the notification issued by Ministry of Commerce and Industry, Government of India, we raise concern towards 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 Unit under Substantial Expansion due to which Unhealthy Competition may be faced from the New Investors in the State who will get the Benefits of Gross GST Reimbursement of 300 percent on the Investment of Plant and Machinery,” Lalit Mahajan, Chairman, Federation of Industries Jammu here told reporters at a press conference.

He was flanked by all Stakeholders of Industrial Fraternity from FOIJ, BBIA, SSI, KIUA and members of Executive Committee of Industrial Association of Jammu Province.

Making an appeal to the Prime Minister, Mr Gupta alleged, “Mr Modi and the Lieutenant Governor Manoj Sinha must save the Existing Micro and Small Scale Industrial Sector of JKUT from closure as the existing sector and service sector totally ignored while granting the Fiscal Incentives.”

He expressed that the majority of the MSME Units set up by the sons of the soil working in the erstwhile 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 08-07-2017 to Existing units.

“We fear that the working Existing Industrial Units may opt for the closure of 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 and it is the need of the hour to provide all the Central Fiscal Incentives as per the Industrial Development Package 2021 to all the existing Units and Units under Substantial Expansion to save the Local Existing working Units from shutdown,” said the Federation Chairman.

“We also want to draw the attention of the Prime Minister and the 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 Subvention of 5 percent on the Working Capital to New Units also was the part of the package of Incentives,” he added.

The industrialists also highlighted the concerning issues like denial of price and purchase preference to local SSI unit by state govt department, State Excise Policy 2020-21, renewal of Licences by the State Excise Department for the Import of Industrial Raw materials covered under the Excise Policy by Industrial Units for 5 years, exemption of bottling fee to breweries working in the State for the Export their Finished Products to outside the State to meet the stiff competition in the Domestic/International market.