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| When J&K Govt gets milk from Centre why should it buy a cow? | | Industrial stagnation at its peak | | Early Times Report
Jammu, Nov 17: When the US President,Barack Obama,thanked Lakshmi Mittal for investing heavily in establishing steel plant in Cleveland in America it reflected America's keen interest in attracting investment in the industrial sector from any quarter and from any industrialist.
And if Obama has appreciated Mittal for the investment he (Obama) is right because Mittal's plant operates two blast furnaces and is capable of producing 3.8 million tonnes of raw steel annually.The steel manufactured by the plant is used for the automotive industry.
But the successive Governments in Jammu and Kashmir have not shown any keen interest in attracting private investment in the industrial sector. These Governments have not mounted pressure on the centre for Government investment in the sector of industry in Jammu and Kashmir. There has been no major success in attracting private and central Government investment.
Despite various concessions sanctioned by the state Government and the Centre the investment in the industrial sector in Jammu and Kashmir has remained very poor when compared to the total investment in Punjab, Haryana, Himachal and Uttrakhand during the last five years.Rough estimates say that while Jammu and Kashmir has recorded a total investment of over Rs 7,000 crores during the last five years Himachal and Uttarakhand recorded an investment of Rs.70,000 to Rs.80,000 crores during the same period.
Aiming to promote industrial development in Jammu & Kashmir, the Centre has extended the special package, under which subsidy on investment and interest rate is offered to business units, to the state for five years till 2017.The total outlay for the period of the new package is Rs 295 crore.In order to provide continuity and to maintain the enabling environment for ongoing industrial development of the state of Jammu & Kashmir, it has been decided to extend the incentives under the special package for a further period of five years from June 15, 2012 to June 14, 2017.
The incentives under the special package include a capital investment subsidy at the rate of 15 per cent of investment in plant and machinery subject to ceiling of Rs 30 lakh.However, micro, small and medium enterprises (MSMEs) would be eligible for capital investment subsidy at 30 per cent of the investment into plant and machinery subject to a ceiling of Rs 3 crore and Rs 1.5 crore for manufacturing and service sector respectively to all new industrial units and existing industrial units on their substantial expansion.
Despite these incentives private industrialists and bid business houses shirk investing in Jammu and Kashmir.Reasons being red tape,corrupt practices adopted by various Government departments in clearing projects,severe electricity shortage,prolonged delays in allotment of land on lease to the new entrepreneurs from outside the state.
This culture has been in vogue in the state since 1980 when a number of big business houses,including Bajaj Electricals visited Kashmir,on the invitation of the then Chief Minister,Sheikh Abdullah,for setting up units in the state.When these industrialists were faced with red tape and other corrupt practices being adopted by the Government officials they developed a cold feet.All that Srinagar got was the Ghanta Ghar built by the Bajaj Electricals in 1980.
In October 2012 prominent industrialists,including Ratan Tata, K.M.Birla, Rajiv Bajaj and Deepak Parikh visited Srinagar on the invitation of the Congress vicepresident, Rahul Gandhi. They interacted with students of the Kashmir university and those who had hoped that these industrialists would set up their units in the state felt crest fallen because during the last over one year there is no news about any new unit being set up in the state.
There were other industrialists from outside the state who wanted to set up their units in Jammu. They had to shelve their plan when the Government tried to prevail upon them to set up their units in the Kashmir valley and not in Jammu. Well they would have done so but the fluid security scenario in the valley had forced them to suspend their plans. And poor investment in industrial sector is one of the reasons for increasing number of unemployed youth.
Well when one gets milk daily one need not buy a cow.And this applies to the state Government.The state Government has been receiving heavy financial support from the centre and hence there was no need for the state authorities to exert their energy on attracting investment in the industrial sector.
If industrialists like Mittal could invest in the US why cannot he do it in Jammu and Kashmir.Yes,he and the like of him may welcome opening their units provided the state Government gives a fast burial to red tape and corruption.Till then the state has to be bank on import of all consumer goods. Except fresh and dry fruits besides rumour mongering and slogan shouting the state is deficient in foodgrains,basic consumer items, medicines, milk, mutton, eggs, chicken etc. |
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