The Kashmir Chamber of Commerce & Industry (KCCI) team lead by the President Javid Ahmad Tenga held an interactive meeting with the Commissioner ,Industries & Commerce Mr. Vikramjit Singh, on 7th of June , 2024 at Srinagar. The KCCI team comprised the Senior Vice President ,Ashaq Hussain Shangloo ,Secretary General Faiz Bakshi ,EC member Mohammad Lateef Bhat and Bilal Ahmad Bhat. The Director SICOP. The Director Industries and Commerce, the Managing Director JKTPO and other officers of I & C and Handicrafts were also present.
The following issues were discussed threadbare :
- 1. Upgrading of GI Tagging Infrastructure :
The KCCI once again stressed the need for urgent upgradation of GI tagging infrastructure in view of the rising demand for GI tagged Pashmina and items around the world. However, given the limited installed infrastructure and shortage of manpower in CDI the tagging activity is being presently carried out at a snails pace. This results in prolonged delay in certification leading to delay in exporting the merchandise which is viewed seriously by International Buyers importing from Kashmir. The commissioner’s attention was invited to the cancellation of many orders , expiry of Letters of Credit on account of the delay in GI Certification. The Commissioner gave on the spot orders for according priority in the process of GI Certification for shipments exportable under Letter of Credit.
- HSN CODE OF SHAWLS :
The KCCI raised the matter of HSN Code of Pashmina and other value added shawls. Presently , the cap on drawback as per HSN Code is capped at Rs. 434/-for all kinds of shawls. This does not cover Pashmina and other value added shawls produced in Kashmir. The Commissioner was apprised of KCCI having taken up the matter with the Union Ministry of Commerce for changing the HSN Code of Pashmina and other Kashmiri shawls. The Commissioner assured that his Department will also take up the matter at appropriate level.
- INDUSTRY :
(A) The KCCI discussed the matter of the Expansion of Industrial base. This could be possible by establishing a robust infrastructure in newly identified estates like power supply, road connectivity, development of land. The allotments should be made after these estates are developed instead of present policy of allotment of land followed by land development with all the facility. The deposition of money should be the last step. This would involve a change in land allotment policy providing for starting operation in 5 years instead of existing 3 years. Moreover, the NOC’s/Clearances should be ensured to be issued in a time bound manner under SINGLE Window SYSTEM in order to avoid delay in starting the Units.
(B)The KCCI Urged the Commissioner to rationally modify the Ranking Policy for Land Allotment to Employability which is lopsided and unrealistic.
(c) INDUSTRIAL POLICY: The KCCI made a strong pitch for continuation of the incentives provided under 2016- Industrial policy (instead of following a suppression policy). All Industrial Policy should be merged.
(D) REHABILITATION OF SICK UNITS: The KCCI suggested forming a joint Appraisal Committee for identifying Sick units on case to case basis for infusing Rehabilitation Dosage as per requirement. There should also be Change in Policy for allowing a unit holder to effect a Change in activity without having to undergo laborious / cumbersome process.
(E) EXPANSION SCHEME: The KCCI discussed the matter of allowing New Units to change any viable activity in vacant space and not restrict him from same complementary activity by amending the Government Order No: 98 dated 06-04-2023.
(F) The Existing Units which have not availed incentives should be allowed to avail the same on change of activity
(G) Green Energy Option: The Units should be provided Incentive for installation of Solar Energy on the analogy of DG sets.
(H) The KCCI suggested Increase in CII Incentives under NESS Scheme from 7.5 to 12 Crores since these units are not eligible for GSTLI .It should be made easier for them to avail CIS in comparison to MIDH.
(I) PMEGP units desiring to avail incentives should get direct formal registration and should be eligible for CIS and GSTLI components under NCSS.
(J) Reservation For Start-ups : The KCCI pitched for significant Reservations for Start-ups in Industrial Estates.
(K) Hotels should be permitted in existing estates if more than 30% existing units desire to shift to hospital sector.
(L)DIC should have an effective working office in every estate for easy accessibility.
The Commissioner Industries & Commerce apprised the KCCI team about the initiatives undertaken by the Government to support the Industrial Growth which include Raising and Accelerating MSME Productivity (RAMP) program- a World Bank supported initiative- by the Government of India to help micro, small, and medium enterprises (MSMEs) improve their productivity and competitiveness.
He assured that the government was actively considering the importance of providing marketing assistance to industrial units and was under discussion at the highest administrative level .The said support aimed to empower businesses in promoting their products and services, thereby expanding their market reach and bolstering revenue streams.
The Commissioner underscored the necessity of forging partnerships with additional financial institutions, such as Non-Banking Financial Companies (NBFCs), to diversify the financial support available to industrial units. He added that the strategic collaboration with NBFCs would offer industrial units access to loans, lines of credit, and bespoke financial products tailored to their unique requirements. He assured that the ongoing dialogue between industrial stakeholders and the government would help bridge communication gap and ensure the effective implementation of government schemes thereby contributing to the overall economic development of Jammu and Kashmir. The KCCI President appreciated the Commissioner for initiating various measures for the benefit of Industry & Handicrafts sector.
Faiz Ahmad Bakshi
Secretary General
