Early Times Report
JAMMU, May 26: The Micro and Small Industrial Sector of Jammu & Kashmir has issued a desperate appeal to the government, citing a severe financial crisis exacerbated by the non-disbursal of long-pending government incentives and a deteriorating ground situation due to a war-like environment.
In a meeting chaired by Sh. Virendra Jain, President of the Association of Industries (AOI), industrialists from across the region expressed deep concern over the government's continued neglect and delayed financial support, which is pushing many units to the brink of collapse. The meeting was attended by all office bearers of AOI and a large number of industrial unit holders.
Industrialists highlighted multiple challenges including:
Migration of labor, hampering day-to-day operations
Lack of transportation and logistical disruptions Operational funds being blocked, leading to over-dependence on private financers and banks
Pending government claims under Turnover Incentive, SGST Reimbursement, and the 3% Interest Subsidy promised under the J&K Special Central Package-II of 2012
While only 11.1% of Turnover Incentive claims for FY 2021-22 have been disbursed, the claims for subsequent periods-2021-22 (remaining), 2022-23, and 2023-24-remain unpaid. This delay has created a severe liquidity crunch, stalling production and risking closures.
Jain further brought to light the long-pending payments for materials supplied by industrial units to various government departments. He emphasized that several payments have been held back by treasuries without explanation, aggravating the crisis.
Adding to their woes, many units have seen their SGST reimbursement claims unjustly rejected due to procedural and technical hurdles, despite filing all necessary GST returns and documents in good faith.
Key Demands Raised by AOI:
Immediate release of all pending incentive claims
Amendments to S.O. 70, 71, and 72 to accommodate delayed claims where compliance has been met
Timely quarterly SGST reimbursements to sustain working capital
Reimbursement of 6% Mandi Tax on wheat procured by J&K Flour Mills from Punjab, to level the playing field with outside suppliers
The Association of Industries has urged the government to act urgently and decisively to honor its financial commitments and support the ailing industrial sector, which is a critical contributor to employment and economic stability in the Union Territory. |
