New Scheme, Old Doubts

When Jammu and Kashmir’s Lt Governor Manoj Sinha ann­ounced a Rs 28,400-crore industrial development scheme for the Union territory, the BJP was quick to link it with Article 370’s abrogation. The party’s J&K president Ravinder Raina claims industrial development didn’t take place in the region due to Article 370, but now investors in the manufacturing sector will get a 30 per cent subsidy if they invest in areas with established industries such as Jammu and Samba districts, and 50 per cent in far-off areas like Poonch, Kupwara and Kishtwar. J&K’s trade bodies and regional political parties, however, are cautious about commenting. “The government issued a press statement, but the fine print is not available anywhere, not even on the website of the department of industries. Unless we know what is in the policy, how can we say anything about it?” asks Devender Singh Rana, National Conference president for Jammu.

The Kashmir Chamber of Comm­erce and Industries (KCCI) says the ­government should encourage joint ­investment in manufacturing and services rather than allowing industrialists from outside J&K to have a free run. Former finance minister Haseeb Drabu says local businessmen and ­entrepreneurs—owners of commercial trade enterprises, small landowners and those self-employed in ­horticulture—will face serious challenges under the new ­economic model.

According to the Federation Chambers of Industries Kashmir, the policy has nothing for existing industries that are in deep trouble. Last July, the KCCI had said that uncertainty followed by lockdowns since August 5, 2019, caused an ­estimated loss of Rs 40,000 crore to Kashmir’s economy and over one lakh job cuts in the ­private sector. KCCI officials say the new scheme is silent about losses suffered over the past two years.

“The main purpose is to generate employment beyond government jobs in both manufacturing and service ­sectors,” says Lt Governor Sinha. Government officials say the scheme aims to take industrial development to the block level. Smaller units with invest­ment in plant and machinery up to Rs 50 crore will get a capital incentive up to Rs 7.5 crore and capital int­erest subvention at the rate of 6 per cent for a maximum of seven years.

By Naseer Ganai in Srinagar