FCIK in pre budget discussion with Advisor to Guv says, ‘last year’s announcements still await implementation’

Srinagar: Federation of Chambers of Industries Kashmir (FCIK) in pre-budget discussions with Mr. K K Sharma Advisor to the Governor of Jammu and Kashmir, expressed concern over the fact that ‘last year’s budget announcements and promises made to the local industry were yet to be fulfilled’.

President FCIK, Mohammad Ashraf Mir brought to the notice of advisor KK Sharma, Principal Secretary Finance Navin K Chaudhary, Commissioner State Taxes Department PK Bhat and Commissioner Excise & Taxation Talat Parvaiz, the issues the industries fraternity is facing today.

While discussing the budget suggestions of budget 2019-20, FCIK said that the waiver of surcharge on account of power dues to industry has not been implemented by the PDD, despite the fact that an order to this effect has already been issued by the finance department and that the waiver of demand charges for seven months of flood period of 2014 was also announced but awaits implementation.

Another point raised by FCIK was that the “rollout of GST has adversely affected the manufacturing sector of the state as the remission available to it as a cost equalizer under VAT regime for making it competitive is not available now. State Government being aware of it promised refund of SGST to the industry. The apprehension of the federation that the process of refund will get entangled in red tape and procedural hassles has come true as the refund is not being made timely.”

FCIK said that the non-implementation of promised price and purchase preference has adversely affected the local industry. The industrial policy in vogue is being flouted by every department in allocating works and supplies to outside contractors in contravention to MSME Act and the State Industrial policy.

“Recent instance being finalisation of tenders for supply of various items by P&MM wing of PDD where in price preference to local industry was totally denied.”

Regarding the ‘Skill Development Programme for increasing Employability’ FCIK said that in spite of the fact that the state is facing the problem of unemployment the industry is facing acute shortage of skilled labour.

“In order to motivate the unemployed youth and school dropouts for undergoing vocational training for various trades at different vocational training centres it is suggested that suitable stipend be paid to the trainees. A budgetary provision is kept for this purpose. Remission on interest paid and extension of moratorium.”

Regarding interest subvention for a period of two years, FCIK said, “it is earnestly requested to extend the subvention for a period of two more years and also take up the case with financial institutions for extension of moratorium.”

Besides these issues, Up-gradation of Industrial Estates, Cattle, Poultry Feed and Salt Grinding, Pending payments, Fruit Processing Industry, Market Intervention Scheme, and Continuation of Back Ended Credit linked Financial Assistance were raised.


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