The Federation of Chambers of Industries Kashmir (FCIK) has urged Chief Secretary Atal Dulloo to seek review and reconsideration of the recent electricity tariff order before the Joint Electricity Regulatory Commission (JERC), J&K, besides seeking interim relief against its implementation pending such review.
A delegation of FCIK led by Head of its Advisory Committee Shahid Kamili called on the Chief Secretary and discussed at length the impact of the tariff increases on an already stressed industrial sector.
The delegation pointed out that while the DISCOMs had sought an increase of around 5 per cent, the tariff increase ultimately approved for industry was substantially higher even without any stakeholder consultation.
FCIK submitted that the increase had come at a difficult time when existing enterprises were already grappling with weak markets, industrial sickness, delayed payments and mounting regulatory costs. It urged the Government to take into account the cumulative impact of prolonged disruptions and adverse business conditions faced by enterprises in J&K before burdening them with additional power costs.
The meeting was held on the advice of Chief Minister Omar Abdullah as a follow-up to FCIK’s recent interaction with him on the immediate problems confronting existing industry pending finalisation of the Revised Industrial Policy. Besides the power tariff issue, the Federation discussed with the Chief Secretary four priority areas that had also been taken up with the Chief Minister—Ease of Doing Business, public procurement, revival of sick and stressed units, and raw-material availability for mineral-based industries.
On Ease of Doing Business, FCIK sought a genuine trust-based regulatory regime providing for self-certification, automatic renewals, deemed approvals, single-window clearances, digitisation and rationalisation of recurring permissions, fees and charges. The Federation stressed that routine regulatory processes should facilitate legitimate enterprises rather than consume their time and resources.
On public procurement, FCIK pointed out that many local units established to supply Government departments were starved of orders even as substantial procurement continued from outside J&K. It clarified that local industry was not seeking higher prices or any relaxation in quality, but purchase preference at competitively discovered L1 rates.
FCIK proposed strengthening SICOP for identified locally manufactured items, MSME-friendly tendering and segregation of industrial supplies from works contracts. It also offered to furnish examples of GeM tenders carrying conditions that effectively disadvantage otherwise capable local manufacturers.
On industrial sickness, the Federation sought early announcement of power and other amnesties to enable stressed units to clear legacy liabilities. It also presented the Chief Secretary with a copy of the SBI OTS Scheme of 2020, seeking a similar transparent and uniform settlement opportunity from banks operating in J&K, particularly J&K Bank. FCIK submitted that relief at least comparable to that extended under the SBI scheme to borrowers across the country should be available to J&K enterprises, if not on more favourable terms, considering the exceptionally difficult business conditions they have endured for over three decades.
The Federation also highlighted the acute shortage of raw material faced by mineral-based industries, particularly Plaster of Paris processing and stone-crushing units, because of delays in finalisation or renewal of extraction arrangements. It sought an immediate lawful interim mechanism for regulated supply, cautioning that disruption could force units to close and adversely affect employment and developmental works, particularly during Kashmir’s limited working season.
The discussions were held in a constructive and positive atmosphere. The Chief Secretary acknowledged the practical difficulties brought to his notice and assured the delegation that the issues raised would be examined on priority with the concerned departments and authorities. He also assured FCIK of his full support and facilitation in mitigating the immediate problems confronting the existing industry.
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