WE THE PEOPLE
Proposed constitution of ‘Industrial Development Board’ likely to promote industrial activity in J&K State
But industrialists’ demand detailed survey to identify sick units, suggest measures to revive them to boost industry
By: Zedan Ali Khan
SRINAGAR: It is heartening to learn that J&K government plans to set up an Industrial Development Board on the pattern of Gujarat in order to promote industrial activity in the state. The proposed Board would frame the future Industrial Policy, which would attract industrialists from outside the State to set up units of all types in J&K. The need for restructuring the Industrial Policy has risen from a token survey which has revealed that the number of sick units continue to increase in the State. One estimate shows that out of the total registered units about 80% were sick in the Kashmir Valley and 30% in Jammu province.
The proposed Board is expected to examine the reasons for increased sickness in the industrial sector and recommend measures for tackling the problem. The Board is expected to recommend whether financial and technical assistance were required to remove sickness or some of the units were beyond cure and needed to be closed for good. It is further learnt that the government is keen to review the market potential of the goods produced in the state in order to have a steady market support for goods which alone is guarantee for better returns. The market scenario too is expected to be examined by the proposed Board.
The industrial sector constitutes an important element of the State’s economy, but rapid economic development is dependent on sustained industrial growth. Despite Industrial Policy 1998-2003, the rate of growth of the industrial sector could not accelerate due to disturbed conditions in the State in general and Kashmir valley in particular. The Industrial Policy 2004 was formulated later to give boost to industrial growth, generate local employment in industrial sector, encourage industrialization in backward blocks and above all modernize existing industrial units. No doubt, a number of incentives were announced for entrepreneurs and also certain tax benefits declared admissible to the entrepreneurs. But to carry out any plan, it is necessary that it must have such a mechanism which shall help in its implementation and as such the District Industries Centres were considered the main agencies for planning and implementation of the schemes for accelerated growth of industries and opening employment opportunities.
However, it needs to be stated that an Industrial Census of Small Scale Industrial Units was conducted in 2002 which revealed that out of 37334 registered units, only 22709 units were closed and 14625 were functional. No census of Small Scale Industrial Units was carried out after 2002. Thus no updated data regarding the number of functional, non-functional and untraceable units is reportedly available with the Department. Pertinent to mention that to encourage industrialization in the backward blocks of the State, capital investment subsidy of 30 per cent subject to certain ceilings is available to industrial units after notifying the blocks as backward by the Government. Although 119 blocks in the State had been identified as backward, yet no notification had been issued up to October 2006, thereby denying incentives to entrepreneurs for setting-up industrial units in these blocks and thus retarding the growth of industry in the backward pockets of the State. One of the objectives of the industrial policy was to improve infrastructure by setting-up industrial estates, industrial growth centres and integrated development centres.
But industrialists’ demand detailed survey to identify sick units, suggest measures to revive them to boost industry in Kashmir valley. Therefore, it is for the Government to get survey conducted for collection of field data and take constructive steps to boost industrial growth in the State. The Valley needs more attention as it has suffered immensely during turmoil. It needs extra attention to develop infrastructure for industrial development and employment generation as thousands of educated youths continue to remain jobless. The State administration is already over-stretched and has no capacity to provide more jobs, but the industrial growth can provide the answer. Whether the same is done, only time will tell!
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