EASE OF DOING BUSINESS IN J&K

Srinagar, Mar 27: The ease of doing business in Jammu and Kashmir is a maze of delays.

The promise of “ease of doing business” here is facing serious questions on the ground, with entrepreneurs alleging that land allotted under the government’s industrial framework remains out of reach even years after completing all required formalities and making full payments.

The industrial land allotment mechanism, introduced under Government Order No 65-IND of 2021 dated March 24, 2021, was projected as a cornerstone reform to facilitate investment through a transparent, fully online single-window system.

The policy envisaged minimal human interface and time-bound clearances, requiring applicants to submit proposals digitally, upload Detailed Project Reports (DPRs) and credentials, and deposit a non-refundable processing fee ranging from Rs 10,000 to Rs 50,000.

However, stakeholders say the system has not translated into ease on the ground.

While applications are processed online, entrepreneurs allege that the actual process involves prolonged engagement with multiple departments, including power, revenue, pollution control, and financial institutions, each operating independently.

“The single-window system is only a starting point. After that, we are left to deal with multiple offices, often for years,” said an entrepreneur awaiting possession of his allotted land.

The issue has become particularly acute in industrial estates such as Tulbal in Sopore and Sempora in Pampore, where entrepreneurs claim that even after allotment and execution of lease agreements, possession has not been handed over for over three years.

Former president of Sopore Industrial Estate, Javid Ahmad Bhat, pointed to inconsistencies in the handling of land earmarked for industrial use.

“A total of 490 kanal of land was earmarked for the industrial estate. Now, queries are being raised on the same land,” Bhat said.

He questioned the role of officials who initiated the process and collected payments from applicants.

“First, the land was earmarked, applications were invited, and money was taken from people. If today they are saying there are issues, then those officials who did this should be booked,” Bhat said.

He said that despite the execution of lease deeds and the payment of premiums, possession had not been handed over.

“It has been three years. Lease deeds have been executed, but possession has not been given. Entrepreneurs are left in uncertainty,” he said.

In Pampore, more than 100 entrepreneurs have raised similar concerns.

In a collective representation, 117 lessees said they were allotted plots in March 2022 through the single-window system but are still awaiting possession.

According to them, the process for land allotment was initiated following the notification of industrial estates under Government Order No 117-IND of 2021 dated April 19, 2021, issued under the J&K Industrial Policy 2021.

Applications were invited in June 2021 for the allotment of land in a proposed IT Park at Sampora.

Subsequently, the land use was changed, and the brick and tile factory site in Pampore was identified as a new industrial estate.

The entrepreneurs said that 238 applications were received, and a processing fee of Rs 10,000 was collected from each applicant, amounting to Rs 23.8 lakh.

Land allotments were finalised in March 2022.

Selected applicants were required to pay a premium of Rs 5 lakh per kanal, along with annual rent of Rs 4500 plus GST per kanal, three years of advance rent, and maintenance charges.

According to the lessees, 115 unit holders completed all formalities by March 2023, and lease deeds were executed on March 2, 2023.

As per the lease agreement, possession of the land was to be handed over within 15 days.

“More than three years have passed, but possession has not been handed over. Our capital is locked, and projects remain stalled,” one of the lessees said.

Entrepreneurs said the delay has been attributed to litigation and stay orders obtained by certain individuals, raising concerns about why land was allotted and payments collected without ensuring that it was free from encumbrances.

The policy’s evaluation mechanism has also come under scrutiny.

Stakeholders allege that Land Allotment Committees assess proposals largely on projected investment and employment figures in DPRs, without adequate verification of actual capacity.

“Those who show higher projections are preferred, while genuine applicants are sidelined,” said a businessman.

Even in cases where possession has been granted, entrepreneurs report difficulties in commencing operations due to delays in securing bank loans, obtaining electricity connections, and obtaining pollution control clearances.

“We are required to start production within a fixed timeframe, but the approvals themselves take years. If we fail, penalties are imposed,” said an industrial unit holder.

Observers say the lack of coordination among departments and the absence of an effective monitoring mechanism have compounded the problem.

“There is no system to track progress or resolve bottlenecks. Each department functions independently, and the entrepreneur bears the consequences,” said a member of an industrial association.

Stakeholders say the situation reflects a broader gap between policy intent and implementation, with the much-publicised “ease of doing business” framework failing to translate into actual ease for investors on the ground.

(This is the second part of a series examining the ground realities of the “Ease of Doing Business” framework in Jammu and Kashmir.)