Revival Now: Kashmir industrialists call for financial package for struggling businesses
Srinagar, Feb 24: Industrialists in Kashmir have called for government intervention to revive sick industrial units through financial restructuring and support mechanisms.
The appeal comes at a critical time when banks are increasingly issuing e-auction notices to businesses that have failed to repay their borrowed loans.
The Federation of Chambers of Industries Kashmir (FCIK) has emphasised the urgent need for the constitution of a high-level committee dedicated to addressing the crisis facing the region's industrial sector, which has endured two decades of challenges further exacerbated by the COVID-19 pandemic.
"Existing enterprises in Jammu and Kashmir are facing severe distress and are on the brink of collapse," said an FCIK representative.
"The capital—both equity and borrowed—of these enterprises has been exhausted, leading to rapid retrenchment and a significant reduction in production. Many businesses have been forced to shut down, and the number continues to rise daily."
In its budget recommendations, FCIK has proposed the formation of a High-Level Committee chaired by the Administrative Secretary of the Industries and Commerce Department. The committee would have a specific mandate to recommend measures aimed at the "survival, revival, and rehabilitation of sick and incipient sick industrial units across Jammu and Kashmir."
"The committee's focus should be on creating special financial packages, facilitating debt restructuring, and providing working capital support to struggling industries," explained a local manufacturer whose unit has been operating at less than 40% capacity. "Without immediate intervention, we're looking at a complete industrial collapse in certain sectors."
Beyond immediate financial support, FCIK has also called for a comprehensive review of the existing industrial policy framework. The organisation has requested the establishment of a High-Level Industrial Policy Review and Formulation Committee, to be chaired by the Deputy Chief Minister.
"We need a single, comprehensive industrial policy that integrates incentives from both the central and UT governments. The current fragmented approach creates unnecessary complexity and hinders growth potential."
The proposed committee would be tasked with several key objectives, including conducting a thorough review of current industrial policies, developing a unified policy framework, identifying policy gaps, streamlining compliance procedures, and promoting sustainable growth.
"One policy for both new and existing industrial units would ensure consistency and clarity. The current system often leaves established businesses at a disadvantage compared to new entrants, despite their proven contribution to the local economy."
The FCIK budget recommendations also highlighted the need for significant infrastructure improvements, including the development of new industrial estates with world-class infrastructure and the upgrading of existing industrial zones.
"Our industrial estates lack basic amenities like proper roads, drainage systems, and firefighting capabilities," said Sajad Ahmad, whose manufacturing unit in Lassipora has faced repeated disruptions due to infrastructure inadequacies. "How can we compete globally when we struggle with such fundamental issues?"
