FCIK flags regulatory bottlenecks, seeks ‘Ease of Living’ for entrepreneurs

Srinagar, Jan 30: The Federation of Chambers of Industries Kashmir (FCIK) has sought the intervention of Chief Minister Omar Abdullah to ensure “Ease of Living” for entrepreneurs, asserting that the much-touted “Ease of Doing Business” in Jammu and Kashmir remains largely confined to policy documents.

On the ground, FCIK said, entrepreneurs spend more time navigating renewals, permissions and no-objection certificates (NOCs) across government offices than managing their businesses. This, the chamber warned, is draining productivity, discouraging enterprise and weakening the region’s industrial ecosystem.

FCIK pointed out that entrepreneurs are required to seek prior approval for routine and lawful business decisions, including the induction of partners or directors, a change of constitution from proprietorship to partnership or company, diversification of activities, and the transfer of units, even to legal heirs.

“While all these actions are legally permissible, they are treated as regulatory events requiring multiple permissions in J&K,” FCIK observed, adding that in a modern business environment, entrepreneurs must be trusted to make such changes unless an activity falls under a prohibited or negative list.

Highlighting ground realities, the chamber drew attention to micro units manufacturing wooden fruit boxes—an important seasonal industry supporting Kashmir’s horticulture sector. These units face severe difficulties in obtaining renewals from the Forest Department, which require multiple formalities, including consents from the Pollution Control Committee. The committee, in turn, asks for NOCs from other departments such as Fire Services and local bodies. This circular process often takes months, and by the time one renewal is secured, another becomes due. FCIK termed this the true face of Ease of Doing Business in J&K.

The chamber also noted that incentives under the Industrial Policy, including stamp duty exemptions, are being interpreted and applied differently by the two directorates, undermining both the intent of the policy and investor confidence.

FCIK further pointed out that the transfer of industrial units to legal heirs following the death of a promoter has become a prolonged and exhausting exercise involving multiple desks and repeated documentation. What should be a simple legal succession, it said, is turned into a bureaucratic ordeal, causing distress to families and disruption to ongoing businesses.

Questioning the logic behind repeated renewal of licences and approvals, FCIK said licences should be valid indefinitely and cancelled only in cases of serious violations or criminal acts. It noted that the recent decision of pollution authorities to grant Consent to Operate for an indefinite period, unless cancelled for violations, should serve as a model for other departments.

Expressing concern, FCIK said the Industries and Commerce Department and its allied PSUs appear to be acting more as revenue collectors than facilitators of industrial growth. It criticised the practice of charging a non-refundable Rs 10,000 deposit for industrial plot applications, saying it penalises entrepreneurs who are not allotted land and discourages youth from taking up entrepreneurship.

The chamber also objected to the demand for additional land premiums through supplementary lease deeds for changes such as the induction of partners, change of activity or name, and the transfer to legal heirs, questioning why repeated premiums are charged for land already allotted as an industrial incentive.

FCIK emphasised that several states, including Telangana, Andhra Pradesh, Gujarat, Delhi, Assam and Tamil Nadu, have adopted time-bound single-window systems, self-certification, auto-renewals and deemed approvals, which reduce discretion, eliminate delays and encourage investment without compromising compliance. Jammu and Kashmir, it said, must urgently align with these national best practices.

In a pre-budget meeting with Chief Minister Omar Abdullah, FCIK placed these concerns and sought comprehensive reforms, including time-bound digital approvals with deemed clearances, self-certification for routine compliances, auto-renewal of licences, issuance of a three-year Single Umbrella NOC, rationalisation of fees, and relief to micro units, particularly wood-based industries.

The chamber made it clear that industrial growth in Jammu and Kashmir cannot be achieved through excessive controls, repeated fees and endless permissions, stressing that a trust-based, facilitative and entrepreneur-friendly regulatory framework is essential for MSMEs to survive, grow and generate employment in the region.