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KSSIA warns of closure of local industrial enterprises in J&K

KT NEWS SERVICE. Dated: 7/1/2020 12:58:22 PM

Alleges major contracts going to nonlocal units unabated

SRINAGAR, June 30: Kashmir Small Scale Industrial Association (KSSIA) Industrial Estate Baghi Ali Mardan Khan today warned the government of closure of local industrial enterprises in J&K alleging that major contracts are going to nonlocal units unabated.
In a statement KSSIA expressed its anguish over the failure of the government to save the remnants of local industrial units most of which have already culminated in a debt trap and breathed its last due to unprecedented business interruptions and callous attitude of authorities.
In a meeting held under the chairmanship of President KSSIA Syed Fazal Illahi, the members warned of a volcanic situation ahead where the local entrepreneurs would be forced to close down all their establishments and retrench their labour force.
The members have put the blame of such volatile situation squarely on the shoulders of the government and bureaucracy that is probably waiting for putting the last nail in the coffin of local industry. “Even though the government of India woke up within a month of Covid lockdown to announce various measures for making up the losses of trade and industry, the local bureaucrats continue to be in deep here despite such a lockdown for almost a year now," they said.
The members added that no concrete proposal for affording any relief to the local enterprises has so far been devised or submitted to any relevant authority here or at the centre.
"Instead of extending any relief, the local industry is fast being deprived of its due share from the developmental works and ongoing projects resulting in sharp fall in the demand and marketing of their products, "they said.
The members informed that all major developmental schemes in Jammu and Kashmir are presently being executed by non-local contractors who procure their industrial goods from outside. While quoting some examples, the members mentioned that the major schemes of power development department for laying and installation of transmission system have been entrusted to non-locals and now the materials like transformers, conductors etc are also being procured from outside enterprises, leaving about 200 industrial units in Jammu and Kashmir jobless. The members demanded a probe into the decision, taken by authorities to procure steeply priced Godrej and Chinese furniture for Panchayat houses and other ordinary departments worth crores of rupees, that severely affected the viability of hundreds of local units engaged in this activity.
Speaking at the meeting, the President KSSIA expressed his dismay over the insensitive behavior and callous attitude of the authorities that has resulted in the depression of the local enterprises. He said the government needs to come clean on the revival of distressed industry or else the time may not be far away when the existing entrepreneurs would prefer to take an exit route. Besides that no prospective entrepreneur would venture in setting up new units in Jammu and Kashmir. Syed Fazal Illahi expressed his concern that huge amount of payment due to the enterprises was withheld by various government departments despite an assurance for its immediate release by Union Finance Minister several months back. The president assured the members of formalising a future strategy for saving the dilapidated industry in consultation with other industrial estates of Jammu and Kashmir and their apex organizations.