Govt engages Kashmir Inc on Ease of Doing Business, Industrial Reforms

Srinagar, May 8:The Union Territory administration on Friday convened its first Kashmir-based stakeholders’ consultation on Ease of Doing Business (EoDB) and proposed revisions to the Industrial Policy 2021–30 in Srinagar.

The meeting was held at the TRC Meeting Hall, Directorate of Tourism Kashmir, and was chaired by Shailendra Kumar, Financial Commissioner (Additional Chief Secretary), Finance Department, who heads the high-level committee constituted to suggest reforms aimed at streamlining industrial growth and improving ease of doing business in Jammu and Kashmir.

The consultation was organised jointly by the Finance Department and the Industries and Commerce Department. Vikramjit Singh, IPS, Commissioner Secretary, Industries and Commerce Department, and Amitava Chatterjee, Managing Director and CEO of Jammu and Kashmir Bank Limited, also attended the meeting.

Several prominent industrial and trade bodies from Kashmir were invited to participate in the process, including the Federation Chamber of Industries Kashmir, Kashmir Chamber of Commerce and Industry, Confederation of Indian Industry, PHD Chamber of Commerce and Industry, and the Federation of Indian Chambers of Commerce and Industry.

Representatives from the tourism and hospitality sector, including the Kashmir Hotel and Restaurant Owners Association and Hoteliers Club, also took part. Key sectoral bodies such as the Jammu and Kashmir Processing and Integrated Cold Chain Association and the D2C Industrial Association of India were likewise invited to contribute to the deliberations.

The consultation marks a significant step towards inclusive policy reforms and investment-friendly governance in the region.

FCIK outlines 6 key contours for new industrial policy

In a significant push for a comprehensive reset of Jammu & Kashmir’s industrial landscape, the Valley’s apex industrial body, the Federation of Chambers of Industries Kashmir (FCIK), on Friday outlined six core contours which, in its view, should guide the forthcoming Industrial Policy and the institutional mechanism for effective implementation of Ease of Doing Business reforms.

The presentation was made by the FCIK delegation led by Shahid Kamili in a meeting with the high-level Drafting Committee constituted by the Government, headed by Financial Commissioner (Additional Chief Secretary), Finance, Shailender Kumar, with the Administrative Secretary, Industries & Commerce Department, Vikramjeet Singh and the Managing Director & CEO, J&K Bank, Amitava Chatterjee as members.

At the outset, FCIK submitted that the revised policy should focus on the consolidation of the existing industrial base alongside the promotion of prospective investment. The federation said the fastest, most cost-effective and employment-intensive path to industrial growth in Jammu & Kashmir lies in preserving and strengthening the industrial capacity built over decades of private investment. It therefore urged that the policy prioritise revival, rehabilitation, modernisation, capacity utilisation and consolidation of existing units, while ensuring that fresh investment expands and reinforces, rather than bypasses, the existing industrial base.

As the second major contour, FCIK said local industry continues to face structural disadvantages arising from location, logistics, finance, energy costs, limited scale and restricted market access. To offset these disadvantages, it called for a stronger public procurement framework ensuring fair market access to local MSMEs through purchase preference, suitable tender conditions, segregation of supply contracts from works contracts, stronger local filters on the GeM portal, and revival of procurement and marketing support through SICOP besides timely payments.

The third contour focused on creating a genuinely facilitative regulatory ecosystem. FCIK called for simplified compliances, rationalised fees, time-bound approvals, deemed clearances, timely payments and transparent digital implementation. It also urged region-sensitive credit delivery and suitable relaxation, in deserving MSME cases, of norms relating to CIBIL scores, external credit ratings and rigid asset classification.

Under the fourth contour, FCIK stressed the need for balanced, sector-sensitive and infrastructure-led industrial growth, particularly in underserved regions. It called for focused support to sectors with strong local value-addition and employment potential—especially wood-based, mineral-based, agriculture-based and horticulture-based industries—along with upgradation of existing industrial estates and creation of new industrial infrastructure.

As the fifth contour, FCIK urged that the new policy move away from fragmented and registration-linked incentives and adopt a broadly uniform incentive architecture for existing, revived, expanding and new units, linked to actual investment, commencement of production, employment generation, labour welfare, green technologies and measurable value addition. The federation pointed out that while more than 1,000 units registered under the New Central Sector Scheme (NCSS) by the September 2024 cut-off are still awaiting approval due to limited funds, units already covered under the scheme continue to enjoy substantial fiscal benefits. This, FCIK said, has created a clear policy imbalance, making it imperative for the revised industrial policy to provide a broadly comparable incentive framework on the lines of NCSS to maintain competitive parity.

The sixth contour related to monitoring and effective implementation. FCIK stressed that the credibility of any industrial policy depends not merely on its formulation but on its execution. It proposed measurable targets for investment, MSME support, employment and sectoral growth, multi-level oversight mechanisms, revival of the Industrial Advisory Council under the Chief Minister, a dedicated grievance redressal mechanism, and clear operational guidelines and authoritative clarifications to ensure accountability, transparency and timely execution.

During the meeting, FCIK also submitted a fresh copy of its earlier comprehensive policy paper, prepared after extensive consultations with its constituent industrial associations across Kashmir. The federation said the document reflects a consolidated grassroots perspective and seeks to ensure that the revised policy addresses structural realities rather than offering fragmented short-term measures.

FCIK also emphasised the urgent need for institutional strengthening of the Industries & Commerce Department, including better coordination, staff augmentation, digitisation of service delivery, and preservation of the distinct functional roles of SIDCO in infrastructure development and SICOP in procurement and marketing support.

According to FCIK, the Chairman and members of the Drafting Committee gave a patient hearing to the delegation, responded to several issues raised, acknowledged a number of the demands, and assured that the submissions would receive due consideration in the policy formulation process.

The meeting was also attended, among others, by Secretary Industries & Commerce Khalid Jehangir, Director Handicrafts/Handlooms Musarat-ul-Islam, Managing Director Trade Promotion Organisation Sudharshan Kumar, Director Industries & Commerce Khalid Majid, MD SIDCO/SICOP Shahid Saleem, Joint Directors Industries & Commerce Zahoor Magrey and Rayees Ahmad, General Managers of various districts,  senior officers, and other stakeholders.

KCCI seeks major reforms in industrial policy, submits 12-point memorandum

The Kashmir Chamber of Commerce and Industry (KCCI) on Friday submitted a comprehensive 12-point memorandum to the Committee on Ease of Doing Business and Formulation of Draft Industrial Policy, constituted by the Government of J&K, seeking major structural, financial and regulatory reforms for the business and industrial sector in the Union Territory.

The memorandum was presented by KCCI President Javid Ahmad Tenga, Farooq Amin, Ashiq Hussain Shangloo and Gowhar Maqbool before Shailendra Kumar during a high-level stakeholder consultation jointly organised by the Finance Department and Industries & Commerce Department in Srinagar. Vikramjit Singh and Amitava Chatterjee also attended the meeting.

In its submission, KCCI said that despite repeated claims of reforms, the business environment in Jammu and Kashmir continues to face procedural delays, poor infrastructure, policy uncertainty and excessive compliance requirements. The Chamber urged the government to introduce practical and enforceable provisions in the upcoming Industrial Policy.

On ease of doing business, KCCI said the existing online and single-window systems have failed to deliver on the ground, with entrepreneurs still forced to physically visit departments and submit documents manually. It demanded complete digitisation, integrated departmental clearances and time-bound deemed approvals.

The Chamber also highlighted poor infrastructure in industrial estates, stating that many continue to lack roads, electricity, water supply and internet connectivity. It specifically raised the issue of entrepreneurs at Tulbal Sopore and Sempora Pampore who, despite executing lease deeds nearly three years ago, are yet to receive physical possession of allotted land.

Referring to the New Central Sector Scheme (NCSS) 2021, KCCI said nearly 70 percent of the Rs 28,400 crore incentive outlay has been affected by regional imbalance. It demanded extension of the scheme till 2035, enhancement of the outlay by Rs 75,000 crore, reservation of 25 percent benefits for local entrepreneurs and inclusion of existing units undertaking substantial expansion.

KCCI also called for reduction in transfer fees, 30-day deemed approvals, removal of FAR utilisation fee and introduction of a Sick Unit Revival Policy. It proposed creation of a dedicated J&K MSME Marketing and Branding Mission, legal protection for a “Made in Kashmir” brand and support for participation in national and international trade fairs.

The Chamber further sought incentives for automation, green technology and industrial modernisation, transparent land allotment mechanisms, extension of stamp duty exemption to units operating on private land and a 75 percent subsidy for rooftop solar installations.

Highlighting that insurance premiums for industries in J&K are significantly higher than the national average, KCCI demanded premium subvention for industries and a one-time loan restructuring package for businesses affected by civil disturbances, natural disasters and policy disruptions.

Speaking during the consultation, Tenga said the recommendations were based on the ground realities faced by businesses in Kashmir and stressed that the new Industrial Policy must move beyond symbolic reforms.

The Chamber said the committee assured that the memorandum and recommendations would be given due consideration during finalisation of the revised Industrial Policy.

CII flags key industrial concerns

The Confederation of Indian Industry (CII) J&K Council on Friday participated in a high-level stakeholder consultation on Ease of Doing Business (EoDB) and formulation of the revised Industrial Policy convened by the Government of J&K in Srinagar.

The consultation was organised jointly by the Finance Department and the Industries & Commerce Department and was chaired by Shailendra Kumar. The meeting was also attended by Vikramjit Singh and Amitava Chatterjee.

The CII J&K Council delegation was led by Chairman Iqram Ali Shafiee and included members Ufair Aijaz Kitab, Haseeb Renzu and Saqib Laharwal.

During the consultation, Shafiee appreciated the government’s initiative to engage with industry stakeholders and raised several concerns relating to the industrial ecosystem in Jammu and Kashmir. He stressed the need for reforms in the Ease of Doing Business portal and called for removal of mustard oil from the negative list under the industrial policy framework.

The CII delegation also pitched for the formulation of a comprehensive logistics policy, rationalisation of incentive allocation based on industry categorisation and reimbursement of SGST claims for both inter-state and intra-state sales.

The meeting witnessed detailed deliberations between government officials and industry representatives on measures aimed at strengthening the ease of doing business framework, enhancing industrial competitiveness and accelerating sustainable industrial growth across Jammu and Kashmir.

JKPICCA seeks investor-friendly policy for J&K

The J&K Fruits & Vegetable Processing & Integrated Cold Chain Association (JKPICCA) has submitted a comprehensive memorandum to Commissioner Secretary Industries & Commerce, Shailendra Kumar, seeking wide-ranging reforms in the proposed Industrial Policy and Ease of Doing Business (EoDB) framework to promote industrial growth and strengthen investor confidence in J&K.

The representation, signed by JKPICCA President Bashir Ahmad Naik, was submitted following a stakeholder consultation meeting organised by the Directorate of Industries & Commerce Kashmir on the formulation of the revised industrial policy for the Union Territory.

In its memorandum, the association highlighted multiple procedural bottlenecks and administrative hurdles affecting industries, entrepreneurs and investors across J&K. It stated that approvals related to land allotment, power sanctions, pollution clearances, registrations and subsidy claims continue to face delays due to overlapping departmental jurisdictions and multi-layered approval mechanisms.

JKPICCA strongly advocated the establishment of a dedicated Investor Grievance Cell for transparent and time-bound resolution of industrial issues. It also called for strengthening the Single Window System through complete digital integration of departments to minimise repetitive documentation and manual processing.

The association further recommended simplification of procedures for obtaining Power Availability Certificates (PACs), introduction of deemed approvals within fixed timelines, and reduction in unnecessary scrutiny mechanisms.

Among its key demands, JKPICCA urged the government to waive transfer fees and stamp duty charges on industrial restructuring and partnership changes. It also sought grant of freehold rights to industrial units to improve access to institutional finance and called for industrial land allotments to be made strictly on a first-come, first-served basis.

The memorandum additionally stressed the need for immediate notification of the proposed J&K Logistics Policy, enhanced freight assistance, support for cold chain infrastructure, and restoration of incentives on the lines of the earlier NCSS scheme, including higher capital subsidies and interest subvention for industries operating in the Union Territory.