Kashmir Trade Body Welcomes Panel to Draft New Industrial Policy, Urges Procurement Reform and Relief for Sick Units | Kashmir Life

SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) on Thursday welcomed the government’s decision to constitute a three-member committee to draft a comprehensive industrial policy for Jammu and Kashmir, saying the initiative could address long-standing concerns of the industrial sector and support both existing and new units.

The committee, headed by Financial Commissioner (Additional Chief Secretary) Finance Shailender Kumar, includes Commissioner/Secretary Industries and Commerce Vikramjeet Singh and Managing Director and CEO of Jammu and Kashmir Bank Amitava Chatterjee as members.

The decision to form the panel was announced by Chief Secretary Atal Dulloo at the conclusion of a stakeholders’ conference held in Jammu. The meeting was attended by senior administrative heads, the Managing Director of JK Bank, Director General of Fire and Emergency Services, Chairman of the Pollution Control Committee and other departmental heads, besides presidents of various business chambers from across Jammu and Kashmir.

According to FCIK, the Chief Secretary also directed the committee to prioritise the finalisation of the Public Procurement Policy, the Revival and Rehabilitation Policy for sick industrial units and other policy initiatives requiring urgent attention.

The meeting began with a presentation by the Industries and Commerce Department outlining steps taken under the first phase of Ease of Doing Business reforms and proposed measures for the second phase. Proposed amendments to the Industrial Policy 2021–30 were also discussed, while several administrative heads highlighted departmental initiatives aimed at facilitating business activity.

During the interaction, FCIK raised concerns about the lack of coordination between the Industries and Commerce Department and other regulatory departments, saying the absence of inter-departmental cohesion was creating operational difficulties for industrial units.

The Federation said that even routine clarifications often take months, leaving industries caught in delays and uncertainty. It called for the removal of unnecessary conditionalities attached to routine approvals and suggested that many approvals should be granted on the basis of self-certification to genuinely facilitate ease of doing business.

FCIK also emphasised the role of District Industries Centres (DICs), urging the government to restore their powers as envisaged under the Micro, Small and Medium Enterprises Development Act so that they can function as effective single-point facilitators for industrial units.

The Federation said the upcoming Industrial Policy must first ensure “ease of living” for industry before ease of doing business, noting that regulatory and administrative bottlenecks had made survival difficult for many industrial units.

It also pointed out that local industries were largely excluded from government procurement during the past five to six years despite the government undertaking capital purchases worth more than ₹1 lakh crore. In this context, FCIK pressed for the immediate launch of the pending Public Procurement Policy and reiterated its proposal for procurement of identified items through the Small Industries Development Corporation Limited (SICOP), purchase preference for local industry in government tenders and strengthening the local filter on the Government e-Marketplace (GeM) portal.

Highlighting the issue of sick industrial units, FCIK said the rehabilitation mechanism envisaged under the existing industrial policy had not been implemented effectively. It expressed concern that banks were publicly naming MSME defaulters and pasting auction notices in public spaces such as markets and even on mosque walls.

The Federation said the policy framework it had submitted to the government—prepared after consultations with industrial stakeholders—emphasises simple cost equalisers rather than complicated incentive structures requiring extensive compliances.

FCIK suggested that the government should first determine the quantum of annual financial support it can extend to industry and prioritise neutralising the regulatory fees and charges imposed by different departments to reduce the cost burden on industrial units.

It proposed that the remaining support could take the form of interest subvention, GST value-addition linked reimbursements, labour-linked EPF and ESI contributions and incentives for green technologies such as solarisation.

The Federation also advocated restructuring viable industrial units and providing an honourable exit from legacy debt for distressed enterprises through the launch of a Special One-Time Settlement (OTS) scheme. Until such a scheme is introduced, it demanded a moratorium on bank actions against industrial units under the SARFAESI Act.