| News Details |
| ICC Jammu Submits Comprehensive Suggestions on Ease of Doing Business | | and New Industrial Policy to Chief Secretary |
Jammu, March 11 (Scoop News)-Chairman of the Indian Chamber of Commerce (ICC), Jammu Chapter, Rahul Sahai, today submitted a detailed set of recommendations to Chief Secretary, Government of Jammu & Kashmir, Shri Atal Dulloo, IAS, during the Stakeholders Interaction on Ease of Doing Business held in Jammu.
Appreciating the Government of Jammu & Kashmir for organising the consultation, Rahul Sahai said that such stakeholder interactions provide an important platform for constructive dialogue between the administration and industry, trade and other sectors. He welcomed the efforts of the government towards deregulation and reduction of compliances under Phase-1 of Ease of Doing Business reforms, while expressing confidence that Phase-2 reforms will further strengthen the investment and business ecosystem in the Union Territory.
During the interaction, Sahai presented a comprehensive memorandum covering issues and suggestions related to Industry, Trade, MSMEs, Education, Tourism, IT and Revenue administration, highlighting the need for focused policy attention to ensure balanced economic development and employment generation in Jammu & Kashmir.
Raising concerns about the industrial sector, he pointed out that several traditional industrial groups from Jammu are gradually shifting their investments to other states due to factors such as availability of skilled labour, lower compliance burdens and better market access. He urged the government to introduce supportive incentives and policy measures to strengthen existing industries, while also proposing skill development initiatives for local youth aligned with the requirements of upcoming industries. He also suggested freehold rights for old industrial estates such as Gangyal, Digiana, Birpur and Bari Brahmana to encourage further investment and modernization.
Highlighting issues affecting labour-intensive local industries, Sahai drew attention to the stress being faced by sectors such as flour mills, brick kilns, steel, tiles and edible oil units due to raw material purchase rate disparities and rising operational challenges. He suggested policy interventions such as compensatory mechanisms or incentives to support local manufacturing and protect employment.He highlighted 6 % mandi tax issue levied by Punjab Government and suggested to smoothen availability of raw material by FCI or introduce entry tax @7% for finished atta , suji , maida coming from other states .
On the trade and commerce front, he emphasised the need to address traffic mismanagement and said lack of traffic management has increased travel time to industrial estates , famous bazaars of jammu which is increasing online business and making life difficult for local entrepreneurs , lack of adequate parking facilities and delays in infrastructure projects affecting access to major markets in Jammu city. He recommended improved traffic planning, timely completion of projects and better parking infrastructure to help local businesses remain competitive. He also proposed development of logistics and warehouse parks around Jammu, strict action against managerial-level fraud in businesses, early resolution of MSME payment issues, and prompt decisions regarding lease deed renewals for commercial areas such as Narwal Fruit Mandi and Transport Nagar.
Speaking on the education sector, Sahai expressed concern that a large number of students from Jammu & Kashmir are moving outside the region for higher education while seats in local Jammu universities remain vacant in almost all the departments for Eg : Many departments of jammu university for Eg: BPED ( Bachelors of physical education ) MPED ( Masters of Physical Education ) has closed for this year because there are no students . Higher Education system is failing in Jammu. In Badherwah university campus Bed is suspended for this year .
He suggested a comprehensive review of the higher education ecosystem, including issues arising from CUET examinations, regulatory challenges faced by local private institutions and the need to regulate unplanned growth of private tuition centres operating parallel to formal schools. Private tution institutions like Padhoji , physics wala , Akash , Allen are working parllel to regular schools with no infrastructure , their working hours are same as school between 9 am to 8 pm and students wants admission in schools as dumy schools and studying in these institutions and these are working without parking , play grounds , proper CBSE registrations etc . Schools which are on huge land banks are becoming dummy schools .
In the tourism and hospitality sector, he recommended simplification of excise procedures for hotel bars, longer validity of tourism registrations instead of yearly renewals, and better traffic management for major tourist destinations such as Katra and Patnitop. He also proposed the creation of tourist facilitation centres at entry and exit points of Jammu & Kashmir on a PPP mode to promote tourist destinations across the Jammu region.
Highlighting the potential of the IT sector, Sahai suggested the development of fully furnished IT parks within Jammu city to support startups and small IT companies, which could create substantial employment for local youth. He recommended utilizing available infrastructure such as the Jammu Haat building as an initial IT hub.
With regard to the revenue department, he stressed the need for time-bound delivery of online services such as Fard, demarcation and Girdawari, and simplification of procedures related to Gair Mumkin Khad land clearances, which would unlock land transactions and generate significant revenue through stamp duty.
In addition to these sectoral concerns, Rahul Sahai also placed detailed policy suggestions for the upcoming New Industrial Policy of Jammu & Kashmir to strengthen the existing industrial base and promote new investments.
He proposed turnover incentives for existing micro, small and medium enterprises, along with working capital subsidy of around 5 percent and continuation of SGST benefits under SRO-31 till 2031. He also recommended interest subsidy on term loans for modernization, replacement of machinery and installation of solar power systems, along with capital subsidies for renewable energy adoption by industries.
For units undertaking substantial expansion, Sahai suggested extension of turnover incentives and working capital subsidies to the expanded capacity, continuation of SGST refunds on both existing and additional activities, interest subsidy on expansion loans, and capital subsidy on machinery and solar installations to support modernization and growth.
For new industrial units, he recommended incentives including turnover-linked support, working capital assistance, SGST refunds linked with plant and machinery investment, capital subsidy and interest subsidy on term loans, with suitable caps to maintain fiscal prudence while still encouraging industrial growth.
Sahai also urged the government to consider a blanket waiver of stamp duty and court fee for industrial units in transactions related to enhancement of credit facilities, takeover of loans by other banks or diversification of industrial activity. He emphasized that such measures would significantly reduce the cost of doing business and improve financial flexibility for industrial units. He further suggested clarification regarding stamp duty exemption on transactions involving leasehold industrial land in government estates to remove existing ambiguities.
Rahul Sahai expressed confidence that the suggestions placed by the Indian Chamber of Commerce, Jammu Chapter will help in creating a more competitive, investor-friendly and employment-generating industrial ecosystem in Jammu & Kashmir.
He thanked the Chief Secretary and the Government of Jammu & Kashmir for providing stakeholders an opportunity to present their views and assured full cooperation of ICC Jammu in supporting the government’s efforts towards economic growth and development of the Union Territory.
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