2,500 industrial units in J&K face closure

Nearly 2500 small scale industrial units in Jammu and Kashmir may face closure due to Central government's sudden and surprising decision regarding withdrawal of Central Excise exemptions.

Terming the Central government's decision as 'death warrant' against the industries in the state, Federation of Industries Jammu chairman, Annil Suri said that the industrial sector in the state has been betrayed by the Union Ministry of Finance and withdrawal of Central Excise exemptions all of a sudden has made the entire package of incentives useless and meaningless in this militancy hit state.

Suri pointed out that the industrialists have failed to understand the intentions of the Central Government, which first offered incentives and later withdrew the same suddenly without caring for its honest commitment.

He claimed that the step would lead to the closure of around 2,500 industrial units in the J&K besides retrenchment of about one lakh labourers. It may also create imbalance in the socio-economic condition of the state.

He regretted that the industrial and trade organisations including the Kashmir and Jammu Chambers were never consulted or taken into confidence before going in for such a major decision. Suri said the state government should immediately intervene into the matter. J&K Minister of Finance T H Qarra and Industries and Commerce Minister Nawang Rigzin Jora have already been requested by all the Industrial and Trade bodies to take up the issue with the Centre, he maintained.

The announcement of Central Excise incentives for the industries in 2002 led to investment of nearly Rs 3,000 crore in Jammu and Kashmir till date. A large number of investors from outside the state have set up their units in Jammu, Bari Brahmana, Samba and Kathua besides some parts of Kashmir. This ever rising investment will come to zero after such a harsh decision, Suri said.

The notification being implemented from April 1, 2008 will be betryal of faith to the investing community, which has raised huge infrastructure or even still busy in the process and invested a lot so far. Many of them have mortgaged their houses to take loans from banks.

Another Federation leader, Kuldip Dogra, said that intentions of the Central Excise department seems to be in the direction to create hurdles and discourage growing industry in Jammu and Kashmir. There seems to be some conspiracy behind it and the Central Government should realise that after the dedicated efforts of this government led by Ghulam Nabi Azad the Industry has seen investment of over Rs 3,000 crore.

He pointed out that for this Chief Minister himself should take up the issue with Prime Minister Manmohan Singh as the issue was of very sensitive nature and suicidal for the fast growing J&K industry. It may shatter the economy of the state as well.