FCIK Flags Industrial Imbalances, Seeks Procurement Reforms, MSME Revival Ahead of Budget | Kashmir Life

SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK), the Valley’s apex industrial body, on Friday submitted a detailed pre-budget memorandum to Chief Minister Omar Abdullah, highlighting deep regional and sub-regional imbalances in Jammu and Kashmir’s industrial landscape and calling for urgent policy interventions to revive MSMEs, entrepreneurship and employment.

During the interaction, FCIK said the ongoing review of the Industrial Policy must correct ground-level distortions that have resulted in stress, underutilisation and idleness across existing enterprises, while simultaneously perpetuating unequal access to industrial opportunities. The chamber outlined 12 critical policy intervention areas, which it described as essential for rejuvenation, upscaling and sustainable growth of industrial activity in the Union Territory.

Presenting data to support its claims, FCIK pointed out that Kashmir currently has around 21,900 kanals of industrial land across existing and upcoming estates, compared to nearly 29,700 kanals in the Jammu region—a deficit of over 7,800 kanals. Within Kashmir, industrial infrastructure is heavily concentrated in South and Central districts, while North Kashmir has only 498 kanals of developed industrial land and 1,828 kanals under development, despite its large geographical spread and population.

A similar imbalance, the chamber said, exists in Jammu, where industrial growth remains largely plains-centric. The Chenab Valley has less than 100 kanals of industrial land with no upcoming estates, while the Pir Panjal districts together account for barely 647 kanals. FCIK termed this skewed spatial distribution a reflection of persistent regional and sub-regional policy bias and urged the government to develop large, contiguous industrial estates in North Kashmir and hilly regions, complemented by activity-based industrial clusters to ensure inclusive growth.

On public procurement, FCIK called for a fundamental overhaul, arguing that local MSMEs are prepared to compete with outside suppliers on price if their inherent cost disadvantages are neutralised. The chamber said industry no longer seeks symbolic price preference on paper, but tangible market access through GST reimbursement on value addition, interest subvention and exemptions from regulatory charges.

To operationalise this, FCIK proposed a three-pronged framework: revival of SICOP as an effective aggregator and distributor of reserved items; MSME-friendly e-tendering with structured purchase preference; and stronger local filters on the GeM portal to ensure genuine value addition and employment generation within Jammu and Kashmir.

Addressing MSME distress, the chamber suggested a three-track revival mechanism, including restructuring under the GO 47-IND/RBI framework with government support, creation of a dedicated MSME Asset Reconstruction Company to address chronic NPAs, and a government-led one-time settlement scheme to allow stressed units a clean exit from legacy debt.

While welcoming the Holistic Agriculture Development Programme (HADP), FCIK urged its implementation in mission mode with adequate budgetary support, describing the 29-project initiative as a potential game changer for agripreneurship and rural industrialisation.

The chamber also sought immediate relief measures, including a one-time power amnesty with waiver of surcharge, interest and penalties, and a statutory clean slate for pending VAT arrears from the pre-GST era, citing assurances given during the GST transition.

In addition, FCIK sought measures to enhance government revenue without burdening industry, suggesting non-intrusive levies such as road tolls and green cess, rationalisation of hydropower water usage charges, responsible monetisation of natural resources, PPP-led infrastructure development across sectors, greater convergence with central schemes, and stricter accountability in fund utilisation.