FCIK Seeks Rs 2,000 Crore Revival Package for Jammu and Kashmir’s Ailing Industrial Units

SRINAGAR: In a significant move aimed at reviving Jammu and Kashmir’s ailing Micro, Small and Medium Enterprises (MSME) sector, the Federation of Chambers of Industries Kashmir (FCIK) has submitted a comprehensive policy appeal to the Union Ministry of MSME, urging urgent interventions to rescue sick industrial units and modernise the region’s beleaguered industrial base.

During an interactive session held in Srinagar, FCIK President Shahid Kamili handed over a detailed memorandum to Union MSME Secretary Subash Chandra Lal Das, highlighting the alarming condition of industrial units in the region. Kamili said that over 90 per cent of the nearly 40,000 units across Jammu and Kashmir are either sick or functioning below capacity due to decades of conflict, repeated lockdowns, and natural calamities, resulting in over 3,000 days of lost operations.

Despite numerous appeals, Kamili said, there has been no structured mechanism for industrial revival. “This sector is on the brink, but with decisive policy support, it can become the backbone of inclusive economic growth in Jammu and Kashmir,” he said.

The FCIK has proposed the creation of a Rs 2,000 crore revival fund to support sick units, enable technological upgrades, and facilitate diversification. The initiative, the memorandum states, could unlock investments worth over Rs 1 lakh crore and create large-scale employment opportunities across the Union Territory.

FCIK also called for a reformed public procurement policy to favour local units, including the revival of the Small Industries Development Corporation (SICOP)’s procurement role. It suggested starting with the 358 reserved items for micro and small enterprises and reserving 25 per cent of public contracts for J&K-based MSMEs. A local vendor filter for contracts up to Rs 2 crore on the Government e-Marketplace (GeM) was also proposed to shield local manufacturers from being sidelined in post-2019 procurement reforms.

Raising concerns over regional disparities in the New Central Sector Scheme (NCSS), the federation demanded equitable access to all 20 districts, including for existing units that seek revival but have been excluded under current provisions that favour new investment alone.

On financial stress, the FCIK flagged the dual burden of high interest rates and coercive recovery methods used by banks. It called for a special one-time settlement scheme, the establishment of a tripartite committee of banks, government, and industry stakeholders, and the creation of a Rs 1,000 crore Asset Reconstruction Company to address NPAs and stressed accounts.

The revival of the Jammu and Kashmir State Financial Corporation was also sought. FCIK noted that the institution was earmarked Rs 150 crore under recommendations made by the Prime Minister’s Task Force and the Dr C. Rangarajan Committee, but the funds remain unreleased.

The federation also asked for urgent development of industrial estates in remote districts, with plug-and-play facilities, rooftop solar energy systems, effluent treatment, and integration with the PM Gati Shakti scheme to enhance logistics.

Institutional reforms, including enhanced coordination within the Industries and Commerce Department, were also urged. The FCIK sought the restoration of autonomy to District Industries Centres (DICs) for processing changes in business structure, directorships, or activities with minimal physical interface.

“Jammu and Kashmir’s industrial base stands at a historic turning point. With the right policy support, we can transform it into a powerful engine for inclusive and sustainable economic growth,” Kamili said.

Union MSME Secretary SCL Das acknowledged the concerns raised and assured the delegation that the Ministry would examine the proposals “with urgency and empathy.”

The meeting was attended by senior officials, including MSME Joint Secretary Ateesh Kumar Singh, J&K Commissioner/Secretary for Industries Vikramjeet Singh, Secretary Khalid Jehangir, Director of Employment and Skill Development Shehzad Alam, Director of Industries Khalid Majeed, MD of Handicrafts Corporation Atul Sharma, GM DIC Budgam Zahid Khan, and others.