KEEMA flags rising NPAs, industrial sickness in electrical manufacturing units

The Kashmir Electrical Equipment Manufacturers Association (KEEMA) has flagged a deepening crisis in the region’s electrical manufacturing sector, urging the government to initiate immediate policy measures to protect and revive local industry.

In a statement, KEEMA president Raja Nayeem Ahmed Khan said that while entrepreneurship is being promoted, the concerns of existing industrial units remain largely unaddressed. He warned that sustainable economic growth cannot be achieved by neglecting the current industrial base.

Khan pointed out that despite significant public investment in upgrading electrical infrastructure across Jammu and Kashmir, most projects are being executed through turnkey contracts awarded to outside firms, effectively sidelining local manufacturers.

KEEMA spokesperson Mukthair Yousf cautioned that the absence of a clear, industry-friendly policy could push the sector toward collapse. “If the government fails to act now, even routine repairs of power distribution transformers may have to be outsourced to other states,” he said.

He stressed that while external contractors may contribute to infrastructure creation, long-term maintenance depends on local industry. “Local units provide round-the-clock support. If they are not sustained today, the system will face serious challenges tomorrow,” he added.

The association also raised concern over rising industrial sickness and mounting non-performing assets (NPAs), describing them as warning signs requiring immediate intervention. Khan called for a comprehensive survey to identify the root causes behind the decline of existing units and to frame corrective policies.

KEEMA further suggested that, given structural constraints in Kashmir’s manufacturing sector, policymakers should guide new entrepreneurs toward service-oriented ventures while ensuring adequate skill development, access to finance, and market linkages.

Reiterating its position, the association said entrepreneurship programmes must be backed by strong institutional support to ensure long-term viability.

“Development must be inclusive and balanced. Strengthening existing industries is as critical as creating new ones. If local industry continues to weaken, the long-term economic cost will be significant,” Khan said.