Federation of Chambers of Industries Kashmir Seeks Chief Minister’s Intervention for Entrepreneurial Ease
In a recent development, the Federation of Chambers of Industries Kashmir (FCIK) has urged Chief Minister Omar Abdullah to prioritize the “Ease of Living” for entrepreneurs in the region. Despite the existence of the much-hyped “Ease of Doing Business” concept in Jammu and Kashmir’s official documents, FCIK highlights that the reality on the ground paints a different picture.
Entrepreneurs in Kashmir are reportedly spending a significant amount of time navigating through the complexities of renewals, permissions, and no-objection certificates (NOCs) across various government offices. This bureaucratic hassle not only drains productivity but also discourages business initiatives, ultimately weakening the industrial ecosystem of the region.
FCIK specifically points out the cumbersome process that entrepreneurs have to undergo for routine business decisions like partner or director induction, changing business constitution, diversification of activities, and unit transfers. Despite these actions being legally permissible, the regulatory framework in J&K treats them as events requiring multiple approvals, hindering business agility.
One of the practical examples highlighted by FCIK is the ordeal faced by micro units that manufacture wooden fruit boxes, crucial for supporting Kashmir’s horticulture sector. These units struggle to obtain renewals from the Forest Department due to the extensive formalities involved, including approvals from the Pollution Control Committee and other departments like Fire Services and local bodies. The cumbersome circular process often leads to delays, impacting the business operations significantly.
Another concern raised by FCIK is the inconsistent interpretation and application of incentives under the Industrial Policy by different directorates, creating confusion and undermining investor confidence. The chamber also criticizes the prolonged and complex process involved in transferring industrial units to legal heirs after the demise of a promoter, emphasizing the need for a more straightforward and efficient succession process.
Questioning the rationale behind the repetitive renewal of licenses and approvals, FCIK advocates for a system where licenses remain valid indefinitely unless revoked due to serious violations. It cites the recent decision of pollution authorities to grant Consent to Operate for an indefinite period as a progressive model that other departments should follow.
Expressing further concerns, FCIK accuses the Industries and Commerce Department and its affiliated PSUs of prioritizing revenue collection over facilitating industrial growth. The chamber disapproves of the non-refundable deposit charged for industrial plot applications, labeling it as a deterrent to entrepreneurship and youth engagement in business ventures.
FCIK also raises objections against additional land premiums demanded through supplementary lease deeds for simple changes like partner induction or activity modifications, questioning the necessity for repeated charges on land already granted as an industrial incentive.
In contrast to the existing scenario in Jammu and Kashmir, FCIK highlights the best practices adopted by several states like Telangana, Andhra Pradesh, Gujarat, Delhi, Assam, and Tamil Nadu. These states have implemented time-bound single-window systems, self-certification processes, auto-renewals, and deemed approvals, which streamline processes, eliminate delays, and foster investment growth without compromising on compliance. FCIK urges J&K to align with these national standards promptly.
During a pre-budget meeting with Chief Minister Omar Abdullah, FCIK presented these concerns and proposed comprehensive reforms, including digital approvals with set timelines, self-certification for routine compliances, auto-renewal of licenses, issuance of a three-year Single Umbrella NOC, fee rationalization, and support for micro units, especially wood-based industries.
Emphasizing the importance of an entrepreneur-friendly regulatory framework for industrial growth in Jammu and Kashmir, FCIK asserts that excessive controls, repetitive fees, and prolonged permission processes hinder the survival, growth, and employment generation potential of MSMEs in the region. Trust-based facilitation is deemed essential for fostering a conducive environment for businesses to thrive.
