Srinagar, Apr 13 (KNO): The Kashmir Chamber of Commerce & Industry (KCCI) participated in a review meeting of the New Central Sector Scheme (NCSS) 2021 and the Industrial Development Scheme (IDS) 2017 for the Kashmir Division, held at the Kashmir Government Arts Emporium, Residency Road, Srinagar.
According to a statement issued to the news agency—Kashmir News Observer (KNO), the meeting was chaired by Rajesh Panwar, IES, Director, DPIIT, and attended by Khalid Majeed (JKAS), Director Industries Kashmir, along with other senior DPIIT officials. KCCI was represented by the Chairman of its Horticulture Sub-Committee, Ashiq Hussain Shangloo, who placed before the forum a detailed overview of ground-level concerns regarding the implementation of both schemes.
Shangloo at the onset that the KCCI lauds the introduction of rs 28400 crore NCSS, and brought to the attention of the officials that while the NCSS 2021 remains valid until 2037, the registration window was abruptly closed on 30th September 2024, leaving several sincere and genuine entrepreneurs who were in the process of formalising their industrial units outside the scheme's ambit. KCCI urged that the registration window be reopened or extended so that deserving entrepreneurs are not permanently excluded from availing the scheme's benefits through no fault of their own. It was further pointed out that departmental formalities in a large number of pending cases remain unresolved, compounding the uncertainty faced by these units.
A matter of particular concern raised by KCCI was the regional imbalance in the distribution of scheme benefits. Out of 2,036 units that registered before the September 2024 deadline, only 953 have been granted eligibility. Of the total outlay of Rs. 28,400 crore, approximately Rs. 20,098 crore is likely to be absorbed by a small number of large industrial units, while the significantly greater number of MSME units will share the remaining allocation.
KCCI noted that this concentration of benefits runs counter to the spirit of inclusive industrial development and called for a dedicated 25 percent regional quota for Jammu & Kashmir to ensure a more equitable distribution. The Chamber also highlighted the unique geographical disadvantage faced by industries in the Valley, whose landlocked character adds substantially to logistics and operational costs, and which must be factored into any rational assessment of scheme eligibility and benefit calculation.
KCCI also raised the long-standing concern that existing MSME units — which form the backbone of Jammu & Kashmir's economy and have sustained local employment through decades of adversity — remain largely outside the purview of the scheme benefits. The Chamber earnestly urged that a mechanism be devised to extend scheme benefits to these existing units, recognising their contribution and supporting their modernisation and growth. It was further submitted that pending cases must receive at least 25 percent of new incentive benefits under any revised or extended framework.
On the broader question of scheme design, KCCI strongly advocated for the clubbing of benefits under IDS 2017 and NCSS 2021, the benefits such as insurance, another in IDS should be included in the NCSS, arguing that only a comprehensive and integrated package of support can make a meaningful difference to industrial units operating in the challenging conditions of Jammu & Kashmir. On the critical question of the scheme's financial outlay, KCCI specifically demanded that if the NCSS is extended, the revised scheme must carry a substantially enhanced outlay of Rs. 75,000 crore. The Chamber argued that the current allocation has already proven insufficient given the scale of industrial demand and the volume of pending cases, and that only an outlay of this magnitude can adequately serve the industrial aspirations of Jammu & Kashmir and make a transformative impact on the region's economy.
KCCI stressed that any revision, extension, or restructuring of industrial incentive schemes must be preceded by meaningful consultation with stakeholders. Policies formulated without such consultation, the Chamber warned, risk entrenching regional imbalance and undermining the confidence of the entrepreneurial community at a time when Jammu & Kashmir's industrial ecosystem is striving to find its footing.
KCCI reiterated its commitment to working constructively with DPIIT, the Industries Department, and all concerned authorities toward an industrial policy that is equitable, inclusive, and genuinely responsive to the needs of the people of Jammu & Kashmir—(KNO)