Jammu Kashmir Industrial Policy: FCIK Seeks Revival Package, MSME Protection  | Kashmir Life

SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) on Friday outlined six major contours for the proposed Industrial Policy of Jammu and Kashmir, urging the government to focus on revival of existing industries, protection of local MSMEs and creation of a balanced incentive framework comparable to the New Central Sector Scheme (NCSS).

The proposals were presented during an interaction with the government-constituted Drafting Committee headed by Financial Commissioner (Additional Chief Secretary), Finance, Shailender Kumar. The committee also includes Administrative Secretary Industries and Commerce Vikramjeet Singh and Managing Director and CEO of JK Bank Amitava Chatterjee.

The FCIK delegation, led by president Shahid Kamili, said the revised industrial policy should prioritise consolidation of the existing industrial base alongside promotion of fresh investments. The federation maintained that the most cost-effective and employment-intensive route to industrial growth in Jammu and Kashmir lies in preserving and strengthening industrial units built over decades through private investment.

FCIK urged the government to frame the policy around revival, rehabilitation, modernisation, capacity utilisation and consolidation of existing industrial units while ensuring that new investments complement rather than bypass the local industrial ecosystem.

Highlighting structural challenges faced by local industries, the federation said industrial units in Jammu and Kashmir continue to struggle with disadvantages related to location, logistics, energy costs, access to finance, limited scale and restricted markets. To offset these disadvantages, FCIK called for a stronger public procurement framework to ensure fair market access for local MSMEs through purchase preference policies, suitable tender conditions and segregation of supply contracts from works contracts.

The federation also sought stronger local filters on the Government e-Marketplace (GeM) portal, revival of procurement and marketing support through SICOP and timely release of payments to industrial units.

Calling for a more facilitative regulatory ecosystem, FCIK advocated simplified compliances, rationalisation of fees, time-bound approvals, deemed clearances and transparent digital implementation of services. It also urged the government to facilitate region-sensitive credit delivery and consider relaxation in deserving MSME cases relating to CIBIL scores, external credit ratings and rigid asset classification norms.

On sectoral growth, the federation stressed the need for balanced and infrastructure-led industrial development, particularly in underserved regions. It proposed focused support for wood-based, mineral-based, agriculture-based and horticulture-based industries, citing their local value-addition and employment generation potential. FCIK also demanded upgradation of existing industrial estates and creation of new industrial infrastructure.

The federation further urged the government to move away from fragmented and registration-linked incentives and adopt a uniform incentive structure for existing, revived, expanding and new industrial units. It said incentives should be linked to actual investment, production, employment generation, labour welfare, green technologies and measurable value addition.

Referring to the New Central Sector Scheme, FCIK said more than 1,000 units registered under NCSS before the September 2024 cut-off are still awaiting approvals due to limited funds, while approved units continue to receive substantial fiscal benefits. It said this imbalance has made it necessary for the revised industrial policy to introduce a comparable incentive framework to maintain competitive parity.

FCIK also stressed the need for a strong monitoring and implementation mechanism, stating that the credibility of the policy would depend on execution rather than formulation alone. The federation proposed measurable targets for investment, employment and MSME support, revival of the Industrial Advisory Council under the Chief Minister, multi-level oversight mechanisms and a dedicated grievance redressal system.

During the meeting, FCIK submitted a fresh copy of its comprehensive policy paper prepared after consultations with constituent industrial associations across Kashmir. The federation said the document reflects grassroots industrial concerns and seeks long-term structural reforms instead of fragmented short-term measures.

The body also called for institutional strengthening of the Industries and Commerce Department through staff augmentation, better coordination and digitisation of service delivery while preserving the separate functional roles of SIDCO and SICOP.

According to FCIK, members of the Drafting Committee acknowledged several issues raised during the interaction and assured the delegation that its submissions would receive due consideration during the policy formulation process.

The meeting was attended by several senior officers and stakeholders, including Secretary Industries and Commerce Khalid Jehangir, Director Handicrafts and Handlooms Musarat-ul-Islam, Director Industries and Commerce Khalid Majid, MD SIDCO/SICOP Shahid Saleem and other departmental officials.