FCIK to Submit White Paper to PM, Flags Imbalance in NCSS Implementation in Jammu Kashmir | Kashmir Life

SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) will shortly submit a white paper to Prime Minister Narendra Modi highlighting what it describes as serious disparities in the implementation of the New Central Sector Scheme (NCSS) in Jammu and Kashmir, and has urged the Union Territory administration to order an independent probe.

The apex industrial body of the Valley said the scheme, conceived by the Government of India to promote balanced, block-level industrial growth, has instead resulted in lopsided development that reinforces existing industrial concentrations. Copies of the white paper will also be submitted to Union Home Minister Amit Shah, Lieutenant Governor Manoj Sinha and Chief Minister Omar Abdullah.

The decision was taken at a meeting of FCIK’s Advisory Committee chaired by Shahid Kamili, which was attended by representatives of industrial estate associations, district bodies and sectoral groups from across the Kashmir Valley. The meeting reviewed the Industries and Commerce Department’s recent rejoinder to media reports that questioned official claims on ease of doing business and highlighted distress among existing industries.

FCIK noted that the Centre had approved an incentive package of Rs 28,400 crore under the NCSS to attract investment, extend industrialisation to underserved districts and generate employment. While acknowledging that the scheme has drawn significant investor interest, the chamber said the core concern lies in its implementation and the uneven distribution of benefits.

Citing official data from the Department for Promotion of Industry and Internal Trade (DPIIT), the chamber said that of 2,346 applications received up to September 30, 2024, only 918 had been approved, while 1,204 remain pending. Of 6,203 claims filed, 3,338 have been approved, but only 1,886 have been disbursed, indicating delays in translating approvals into actual industrial activity.

The chamber pointed to a concentration of industrial momentum in established corridors such as Kathua, Samba and Jammu in the Jammu division, and Pulwama, Srinagar and Budgam in the Kashmir division. Several districts—including Doda, Kishtwar, Ramban, Rajouri, Poonch, Udhampur, Reasi, Kupwara, Baramulla, Bandipora, Ganderbal, Kulgam, Anantnag and Shopian—remain marginal in the implementation pattern.

It further highlighted a regional skew, with Jammu accounting for around 65 per cent of registrations and 62 per cent of claims, compared to Kashmir’s 35 per cent and 38 per cent respectively. Rejection rates in Kashmir were also significantly higher at 15.4 per cent, against 6 per cent in Jammu.

Raising concerns over concentration of incentives, FCIK said 18 units alone account for approvals worth about Rs 20,098.40 crore, with most located in a single region. The chamber questioned the absence of a more balanced distribution strategy to ensure wider employment generation.

The body has also sought full public disclosure of the Rs 2,513 crore already disbursed, including details of beneficiaries and the share received by existing versus new enterprises.

Calling for corrective measures, FCIK urged the Jammu and Kashmir government to constitute an independent high-level committee to examine whether the scheme’s implementation aligns with its original objective of equitable, block-level development.

The Advisory Committee endorsed recent media reports on industrial stress, stating that rising Udyam registration figures and improved Business Reform Action Plan (BRAP) rankings do not necessarily reflect functional viability or address operational challenges faced by enterprises on the ground.