50% units in Jammu & Kashmir’s industrial zones unused\, inactive

Srinagar: At a time when Jammu & Kashmir administration is preparing for Global Investors Summit, which is scheduled to take place in April, around 50% units in different industrial estates in the Valley remain unused or non-functional due to the prevailing political uncertainty.

As per the government figures, out of 2,547 plots allotted to businessmen in 26 industrial estates, only 1,444 are functional, 323 are non-functional, 479 remain under establishment, 191 units have taken no steps while some areas in these estates remain under armed forces.

The situation has worsened for the businesses since August 5, 2019, when the J&K Reorganization Bill was passed and communication and Internet curbs were put in place. “Even the functional units are on the verge of closure. Businesses in Kashmir are facing an existential threat,” president of Kashmir Chamber of Commerce and Industries Sheikh Ashiq told ET. What is adding to the problems of businessmen is ‘unprecedented pressure’ from banks and financial institutions to pay EMIs and recover loans.

“We may be circumstantial defaulter but certainly not willful defaulters…We just want a breather but nobody is listening to us,” said Ashiq. The businessmen also complained about enforcing GST submission and payment of fines amid ongoing Internet ban and drafting a new Industrial policy when local units had already tried to adjust to the 2016 policy, which was valid till 2026.

“We are being humiliated every day. A bill from power department is copied to local J&K police SHO just to harass us. Bankers barge into our homes demanding EMIs even when our collateral is much more than what we owe to the banks,” Rouf Punjabi, a leading businessmen, told ET. In its report, the KCCI stated that accumulated losses for four months after August 5 were around ?17,800 crore.

The administration is not taking any formal steps to address grievances of businessmen as most of the top officials are busy promoting the summit, for which 6,000 acres have been identified across the state. The government has also planned to engage prominent local businessmen, most of whom are crying hoarse about business losses, for promotion of the summit.

“Local businesses are suffering-…But we are trying our bit. In the last bankers committee meeting we have requested RBI for restructuring of loans for standard accounts and not consider overdues as on August 5, 2019,” Mehmood Shah told ET.