Small Scale Industries sector of Jammu & Kashmir State is at verge of closure


An emergency meeting of Advisory & Executive Committee of Association of Industries (regd.), Gangyal was held today under the chairmanship of officiating president Bansi Lal Gupta.

The other office bearers, namely Ashok Kumar Jain, Vice President, Pardeep Vaid, General Secretary, Sandeep Ohri, Secretary and Lavinder Singh Puri, Treasurer were also present on the occasion.

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The members expressed deep resentment over the unwanted circular issued on dated 27-September-2018 by the Chief Engineer, EM&RE which has negated the budget announcements regarding amnesty to SSI sector in order to provide relief and succor to the sector which has been suffering badly due to downtrend in business during the last one year. The members unanimously decided to take up the issue with the Governor so that the SSI sector does not suffer. The members demanded that the circular should be withdrawn immediately.

The members also took serious view of notification orders No. 431 and 411 of dated 25-September-2018 regarding 2% subsidy in lieu of CST exemption which was available to the SSI units under the VAT regime. While it was a welcome step but by putting riders like 1000 kilometres condition which make the incentive available to only such units which sell their material beyond this limit, the Government has created a class within a class by denying the incentives to those units which were selling in neighbouring States of Punjab, Haryana upto Delhi. The Association of Industries (AOI) urges the Government to immediately remove the illogical condition so that the benefit is available to the entire sector.

The members expressed their deep anguish over the fact that even after the passage of more than one year the meager incentive regarding the SGST refund which was declared by the Government vide SRO No. 63, 519 & 521 has still not being availed by the SSI sector. This has resulted in huge losses on account of blockage of funds and unnecessarily increased input costs. The members condemned pick and choose policy adopted by the Commercial Tax Deptt. due to which a lot of micro and tiny sector units have not even being inspected till now. Even those units which have been inspected have not received the funds promptly. If this state of affairs continues, the SSI sector will see a huge mortality, for which the Government will be responsible. This is happening notwithstanding the fact that the Government is committed to promote ‘ease of doing business’. The mortality will result in loss of jobs and retrenchment of the local labour.

The members also appealed to the Governor’s administration that the SSI sector needs to be patronized by way of making it competitive by providing fiscal incentives to the industrial sector that were available before the changeover from VAT to GST regime.

The GST regime has resulted in more competition from SSI sector based in the neighbouring states of Punjab, Haryana, Himachal Pradesh & Delhi which has resulted in the loss of business to the local industry.

The Association of Industries seeks the personal indulgences of the Hon’ble Governor so that SSI sector can be saved from further suffering as most of the sector is run by the sons of the soil who had employed most of the local labours which will also suffer.