Srinagar, May 08 (KNO): The Kashmir Chamber of Commerce & 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 Jammu & Kashmir, seeking major structural, financial and policy reforms for the business and industrial sector in the Union Territory.
In a statement issued to the news agency—Kashmir News Observer (KNO), KCCI President Javid Ahmad Tenga, Farooq Amin, Ashiq Hussain Shangloo, Gowhar Maqbool presented the memorandum before Shailendra Kumar, IAS, Financial Commissioner (Additional Chief Secretary), Finance Department, J&K, during a high-level stakeholder consultation organised jointly by the Finance Department and Industries & Commerce Department in Srinagar. Vikramjit Singh, IPS, Commissioner Secretary, Industries & Commerce Department, and Amitava Chatterjee, Managing Director & CEO, Jammu and Kashmir Bank Limited, also attended the meeting.
In its detailed submission, KCCI stated that despite repeated claims of reforms, the actual business environment in Jammu & Kashmir continues to suffer from procedural delays, weak infrastructure, policy uncertainty and excessive compliance burdens. The Chamber urged the government to incorporate practical and enforceable provisions in the upcoming Industrial Policy.
The Chamber’s memorandum covered twelve major concerns:
1. Ease of Doing Business: KCCI said that online systems and the single-window mechanism have failed to deliver on the ground, with entrepreneurs still compelled to physically visit departments and submit documents manually. It demanded complete digitisation, integrated departmental clearances and time-bound deemed approvals.
2. Industrial Estate Infrastructure: The Chamber highlighted that several industrial estates 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.
3. NCSS 2021 Reforms: KCCI stated that nearly 70 percent of the Rs 28,400 crore incentive outlay under the New Central Sector Scheme (NCSS) has been marred by regional imbalance. The Chamber 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.
4. Compliance Burden and Regulatory Reforms: Referring to industrial models in Maharashtra, Telangana, Gujarat, Kerala and Tamil Nadu, KCCI argued that J&K’s current framework remains far behind national best practices. It demanded reduction in transfer fees, 30-day deemed approvals, removal of FAR utilisation fee, adoption of a “same beneficial owner” principle and introduction of a Sick Unit Revival Policy.
5. Marketing and Branding Support: KCCI proposed creation of a dedicated J&K MSME Marketing and Branding Mission, legal protection for a “Made in Kashmir” brand, support for participation in national and international trade fairs, e-commerce onboarding assistance and freight subsidies for exporters facing geographical disadvantages. The Chamber noted that J&K handicraft exports exceed Rs 733 crore annually.
6. Public Procurement Policy: The Chamber said the mandatory 25 percent procurement policy for MSMEs under the MSMED Act is not being implemented effectively in J&K. It demanded that the reserved procurement quota be sourced from locally registered MSMEs and that procurement data be disclosed quarterly.
7. Modernisation and Technology Upgradation: KCCI sought dedicated incentives and subsidies for automation, energy efficiency, green technology and expansion of existing industrial units to improve competitiveness and productivity.
8. Relief for Interim Units: The Chamber demanded that industrial units established or registered before formal notification of the new Industrial Policy should remain eligible for incentives and benefits under the forthcoming framework through a clearly defined cut-off mechanism.
9. Transparent Land Allocation System: KCCI criticised the present land allotment ranking mechanism for excessive emphasis on projected employment generation without verification. It demanded transparent scoring criteria and post-allotment employment verification through EPFO and ESIC records.
10. Stamp Duty Exemption: KCCI pointed out that the proposed 100 percent stamp duty exemption applies only to units operating within government industrial estates, excluding nearly 60 percent of industrial units functioning on private land. The Chamber sought extension of the exemption to all genuine industrial transactions.
11. Insurance and Solar Subsidies: Highlighting that insurance premiums for industries in J&K are 40 to 60 percent higher than the national average, the Chamber demanded full premium subvention for general and workmen compensation insurance. It also sought 75 percent capital subsidy for rooftop solar installations to reduce dependence on costly grid and diesel power.
12. Loan Restructuring Window: KCCI demanded a one-time loan restructuring package for businesses affected by civil disturbances, natural disasters and policy disruptions, and urged J&K Bank and other financial institutions to extend immediate relief to stressed units.
Speaking during the consultation, KCCI President Javid Ahmad Tenga said the Chamber’s 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. KCCI also offered to make a detailed presentation and provide additional data to support its recommendations—(KNO)