FCIK raises alarm over NCSS bias, demands fair incentives for local industry

Srinagar, Sep 15: The Federation of Chambers of Industries Kashmir (FCIK) has voiced serious concern over the continued neglect of local industrial units in the implementation of the New Central Sector Scheme (NCSS).

In an interaction with the Department-Related Parliamentary Standing Committee on Commerce, led by Chairperson Ms. Dola Sen, FCIK President Shahid Kamili highlighted that nearly 300 local industrial units that commenced production in the last 2–3 years are being denied incentives on the grounds of fund exhaustion.

“It is both unfair and discouraging that fully operational units are refused incentives, while projects yet to take off continue to have funds reserved,” Kamili remarked.

FCIK urged the Committee to recommend a first-come, first-serve basis for granting incentives, restoring confidence among local enterprises and countering perceptions that policies are designed for outsiders and affluent investors at the cost of local entrepreneurs.

The Chamber also pressed for Central Public Sector Undertakings (CPSUs) executing projects in J&K to procure at least 25% of their requirements from local MSMEs, thereby generating jobs, strengthening local capacities, and ensuring public investments benefit the regional economy.

Another major concern was the revival of sick units, which lack adequate policy and financial support. FCIK demanded a dedicated corpus fund and a comprehensive One Time Settlement (OTS) scheme to give distressed enterprises a fair chance of recovery. The Chamber also raised alarm over persistently low credit flow from all banks except J&K Bank.

Despite repeated assurances of “Ease of Doing Business,” FCIK noted that entrepreneurs face hurdles at every stage—registrations, approvals, change of Constitution, taxation, and financing.

Standing orders meant to simplify processes are rarely followed on the ground, creating delays, uncertainty, and additional costs.

This disconnect between policy and practice, the Chamber argued, severely undermines industrial growth in J&K.

FCIK stressed the urgent need for a robust industrial policy tailored to both existing and prospective units. Such a framework, it maintained, is essential for balanced and sustainable industrialisation in the Union Territory.

The Parliamentary Standing Committee on Commerce, currently on a three-day study visit, includes members Renuka Chowdhary, Sadanand Mahalu Shet Tanavade, Rosey Sailo Damodaran, Sunil Tripathi, Vijay S. Raja Shekhar, Prasun Banerjee, Yousuf Pathan, Prashant Yadaorao, Ramesh Awasti, Santosh Panday, and Shiv Pal Singh, among others.