Srinagar, August 06, (Scoop News)- Chief Minister, Omar Abdullah Wednesday underlined the need for encouraging young local entrepreneurs to invest in the feasible industrial and handicrafts sectors promising greater economic prospects for them and huge employment opportunities for youth.
Chairing the 5th State Industrial Advisory Committee (SIAC) meeting here today, the Chief Minister said that incentives as provided under the State and the Central Industrial Policies should easily accrue to the local industrialists and budding entrepreneurs so that they could expand their industries and launch new ones. He said holistic industrial development is imperative for all round development of the State and generation of wide-ranging economic activities for both skilled and unskilled human resource.
The Chief Minister was given detailed account of the functioning of Industries and Commerce Department and the policy it is pursing to strengthen the sectors of industries and handicrafts in the State which are responsible for providing livelihood to more than five lakh people.
The meeting was attended by Minister of State for Industries and Commerce, Sajjad Ahmad Kitchloo, Chief Secretary, Mohammad Iqbal Khandey, Economic Advisor to Govt, Jaleel Ahmad Khan, Financial Commissioner Industries and Commerce, Khursheed Ahmad Ganai, Principal Secretaries, B. R. Sharma and B. B. Vyas, various Commissioner Secretaries, Administrative Secretaries, senior officers and representatives of trade and industries.
In a PowerPoint elaborative presentation the Financial Commissioner Industries and Commerce Khursheed Ahmad Ganai stated that a new Draft Trade Policy has been formulated by the Committee constituted for the purpose taking care of all aspects of the growth and welfare of industries and handicrafts. He said the Draft Policy has been referred to Planning, Finance, Law and Parliamentary Affairs Department for observations and commitment. He said it has also been decided that package for industrial backward areas would be considered as a part of the main package.
Ganai presented salient features of the current Trade Policy and identified the areas where further improvement is required. He also gave brief about the strategy being followed to give fillip to the industrial and entrepreneurship development in the State. He said incentives under the State Policy include land and power at concessional rates, 3 percent interest subsidy on working capital, 100 percent subsidy on purchase of new diesel generators, 100 percent subsidy on project report and quality testing equipment, 5 percent rebate on interest on term loan for technocrats, 75 percent subsidy on research and development, special incentive for brand promotion and modernization, toll tax exemption, CST exemption, VAT remission, etc.
It was stated that during the last two years about Rs. 47 crores worth incentives have been paid to the industrial units under the State Policy while the cumulative figure in this regard is Rs. 196.78 crores by the end of last year. It was stated that under the Centre package incentives worth Rs. 186 crores have been paid to the industrial units cumulatively till the end of the last year.
The meeting was told that presently 29454 small scale industrial units are registered in the State while the number of medium and large industrial units registered is 115. There are 53 industrial estates and the total investment in the industrial sector other than handicrafts is Rs. 7509 crores. This sector provides employment to 1.51 lakh people.
The meeting was told that more than 3.75 lakh artisans are associated with handicrafts sector and the production of handicraft items worth Rs. 2017 crores was achieved in the last year. Of this, exports to the tune of Rs. 1695 crores were registered. There are about 38000 weavers earning their livelihood from handloom sector. Government has registered 523 Handloom Cooperative Societies and it runs 100 training centres for capacity building of weavers.
The meeting discussed issues relating to Trade Policy, Labour Development, Local Employment, Subsidy, Brand Promotion, Extension of GOI package incentives, VAT Refund, Removal of Negative List, Reduction in the rate of Electricity Duty, one time debt relief to MSME, power infrastructure improvement, setting up of eco-sensitive zones around National Parks and Wild Life Centuries, marketing support, grievance redressal, raw material for Pashmina, promotion of local industry through cluster approach, uniform lease, online registration, etc.
The representatives of Kashmir Chamber of Commerce (KCCI), Federation Chamber of Industries, Kashmir (FCIK) and Jammu Chamber of Commerce and Industries (JCCI) raised various issues relating to transport subsidy, import of plant machinery, decrease in gestation period, excise duty, inclusion of all items under LOC Trade, sanctioning of Exit Polity, waiver of electricity dues of MSME, Pashmina Raw Material Bank, VAT Refund, Green Category Units, Revolving Fund, Exemption of Entry Tax on Import of goods by Hotel Industry, Levy of tax on purchase of paddy, etc.
MORE AT http://scoopnews.in/det.aspx?q=39794