Jammu Kashmir industry hit hard by recession

New Delhi: The state of Jammu and Kashmir has a cruel reminder that recession is here. Matters have worsened with a change in the industrial policy which has hit investment in Jammu and Kashmir hard.

With over Rs 4000 crores at stake and nearly 150 units having shut down, the industrial health of the state is deteriorating.

A menthol factory has been locked for over last three months.

This is just one of the 150 units, which are shutting down in the state of Jammu and Kashmir.

They have all been hit hard after the Central government changed the Industrial policy for the state, withdrawing 100 per cent excise refund incentive.

The Centre had promised to keep the excise refund incentive on till 2012.

TS Reen, Chairman, Federation of industries in J-K said, “Nearly 25 per cent units have closed and the rest are on the verge is closure. Nearly 10,000 employees have already been retrenched.

Things are certainly not looking brighter for an industry hit hard by years of militancy.

The central government had announced industrial incentive for Jammu and Kashmir in 2002 to boost investment in the state, based on the lines of north eastern states and this included 15 per cent capital investment subsidy, comprehensive insurance to units and central tax refund.

The policy brought in over 4000 crore rupees of investment.

But after allegations of misuse, some of the incentives have been withdrawn.

Chairman of the Chamber of Commerce in Jammu, Ram Sahai said, “There has been a misuse but we have told the Centre that hang the defaulters if they are guilty but don’t let the entire industry suffer.”

The state government, meanwhile, has been saying that it is rooting for the cause of industry again.

But till then the deserted units have a different story to tell.

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