FCIK seeks LG, CS's intervention for re-establishing support to MSMES

Srinagar, Apr 22: The Federation of Chambers of Industries Kashmir (FCIK) has solicited the intervention of Lieutenant Governor Manoj Sinha and Chief Secretary Atal Duloo for re-establishing a foundation of support and trust besides the building of a positive relationship between the government and MSMEs by honouring commitments made under various government policies and schemes.

Regretting the negative feedback received from its constituent associations regarding the breach of commitments and the negative approach of authorities, FCIK has called for revisiting the provisions and mechanism for time-bound approval and disbursement of various incentive schemes.

The Presidents of various Industrial Associations from across Kashmir valley had called on the Advisory Committee of FCIK to apprise about the ordeal of entrepreneurs in availing of the Turnover incentive provided to MSMEs / large units @ 3% and 2% respectively under the Industrial policy of 2021-30. Regretfully the incentive was subjected to annual overall capping of 50 Crores diluting the very commitment of 3% and 2% to MSMEs and large units.

According to Association Presidents, the enterprises had been subjected to cumbersome procedures while asking for multitudinous documents and NOCs from various quarters to support their applications for turnover incentives.

The presidents informed that the claims had been subjected to a pre-disbursal audit and other frivolous procedures before a list of beneficiaries was released by the Directorate of Industries and Commerce on March 27.

They said that it was to their utter surprise to find that the incentives approved by Divisional Level Committees (DLCs) had further been reduced by a whopping 85% making its essence preposterous.

“How ridiculous is it that an entrepreneur from Srinagar and another from Baramullah have been sanctioned a sum of rupees 296 and 539 respectively after a long wait and fulfilment of formalities," they said adding that a significant number of beneficiaries mentioned in the list had to receive peanuts only.

The Presidents further informed that the Directorate of Industries and Commerce Kashmir has sanctioned just Rs 3.80 crore for 371 enterprises of Kashmir valley against the total funds of approximately Rs 25 crore igniting a fresh debate on gross regional disparities.

“But then the bills for even this amount have not been cleared at treasuries till the end of last fiscal making the authorities to promise their clearance during the current year," informed presidents.

Acknowledging the grievances of FCIK constituents, the Advisory Committee assured them to take up the issue with UT Administration for revisiting their curtailment in the scheme considering that any curtailment made in the promised incentives broke the very confidence of enterprises on government policies.

The Advisory Committee regretted that the majority of entrepreneurs had not applied for the Turnover incentive only to save themselves from time waste and mental agony which underscored the need for change in the mechanism for its disbursement.