The Federation of Chambers of Industries Kashmir (FCIK) has expressed satisfaction over the seriousness and pace with which the Government is working towards framing and finalising a new Industrial Policy for Jammu & Kashmir, saying its early rollout could mark an important step towards revival of the existing industrial sector alongside promotion of fresh investment.
FCIK said the Government’s decision to revisit the industrial framework at this stage was both timely and significant, particularly when a sizeable section of the existing MSME sector continues to struggle with legacy stress accumulated over years of disruptions, natural calamities, prolonged shutdowns and other circumstances largely beyond the control of individual entrepreneurs.
The Federation appreciated the consultations being undertaken by the Government and hoped that the policy would be finalised and launched at the earliest so that its benefits begin flowing to enterprises without further loss of time.
The Federation observed that the real success of the new policy would lie in simultaneously addressing new investment, existing industry and revival of stressed enterprises.
FCIK said that while finalisation of the comprehensive policy may require completion of necessary governmental processes, some relief measures need not wait for its formal notification. In particular, the Federation urged the Government to announce a Power Amnesty for stressed industrial units, either alongside the new policy or in anticipation thereof.
The power amnesty should provide waiver of accumulated interest, surcharge and other penal charges, while the genuine dues towards actual consumption of electricity could be recovered in reasonable installments. In the case of stressed industrial units, relief from accumulated demand charges should also be granted, particularly for periods when units remained closed or operated at severely impaired capacities due to circumstances beyond their control.
Similar amnesties should be considered in respect of interest, surcharge, penalties and late-payment charges accumulated on dues payable to Government departments, industrial development corporations and other Government-controlled agencies. FCIK said that insisting upon recovery of layers of penal charges from enterprises which the Government itself proposes to revive would be counterproductive. The objective should be to recover legitimate principal dues while removing historical burdens that obstruct revival.
FCIK further said that the revival exercise would remain incomplete without simultaneous resolution of legacy bank debt.
The Federation recalled that FCIK and other major chambers have already requested J&K Bank to introduce a special One-Time Settlement scheme broadly replicating SBI’s OTS-20, without dilution of its scope and essential relief principles. Such a settlement mechanism could provide a transparent, uniform and non-discretionary opportunity to eligible stressed borrowers to settle old liabilities and bring long-pending accounts to closure.
FCIK said an OTS should not be viewed merely as a recovery mechanism for the Bank. Properly structured, it could become an important instrument of economic revival, because settlement of legacy debt would enable potentially viable enterprises to clean their balance sheets, restore banking relationships, access fresh working capital and restart meaningful operations.
The Federation urged J&K Bank to synchronize the proposed special OTS with the Government’s industrial revival initiative so that the two measures complement each other. Government policy can rehabilitate the enterprise, but unless its legacy financial stress is simultaneously resolved, meaningful revival would remain difficult.
FCIK said the Government now has an opportunity to bring together the different elements of revival into one coordinated initiative—a progressive Industrial Policy, power and Government-dues amnesties, resolution of legacy bank debt through a fair OTS, fresh finance for viable units, and an effective Ease of Doing Business regime.
The Federation observed that such an approach would not only protect thousands of existing enterprises and employment opportunities but would also send a strong message to prospective investors that Jammu & Kashmir values entrepreneurs who have already invested and remained rooted here through difficult circumstances.
FCIK hoped that the Government would maintain the momentum presently visible in the policy-making process and translate it into an early announcement.
“A new Industrial Policy should not merely create new enterprises; it should also give a new life to enterprises that already exist. Combining the policy with amnesties and a fair OTS can turn legacy stress into productive assets, restored employment and renewed economic activity,” FCIK said.
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