Srinagar: The Federation of Chambers of Industries Kashmir (FCIK) on Tuesday urged the Jammu and Kashmir administration to expedite notification of the new Industrial Policy and simultaneously announce a revival package for stressed enterprises, saying early action would help salvage the existing industrial base and attract fresh investment.
FCIK welcomes policy process but seeks immediate reliefs
In a statement issued in Srinagar, the industry body said it appreciated the government’s consultations and the pace at which the draft policy is being framed. However, it called for certain relief measures to be rolled out without waiting for the formal notification of the comprehensive policy so that struggling units receive immediate respite.
The Federation emphasised that success of the new industrial framework will depend on a twin focus: encouraging new investment while simultaneously addressing the revival of stressed micro, small and medium enterprises (MSMEs) and existing industrial units that have accumulated legacy liabilities over the years.
Key reliefs sought
Among the measures the FCIK proposed, the most prominent was a demand for a Power Amnesty for stressed industrial units. The Federation said the amnesty should:
- Provide waiver of accumulated interest, surcharge and penal charges on electricity bills;
- Allow recovery of genuine dues for actual consumption through reasonable instalments;
- Grant relief from accumulated demand charges, particularly for periods when units were closed or operating at severely reduced capacities owing to circumstances beyond their control.
FCIK also urged that similar amnesty provisions be considered for other statutory dues, including interest, surcharge, penalties and late-payment charges that have piled up on enterprises during prolonged disruptions.
Bank restructuring model requested
The Federation sought adoption by J&K Bank of a one-time settlement mechanism modelled on the SBI OTS-20 scheme, asking that a comparable facility be made available to industry borrowers to permit timely resolution of stressed accounts.
FCIK argued that a targeted OTS-style option would help clear legacy non-performing assets and restore credit flows to viable units, thereby supporting employment retention and renewed industrial activity.
Reason for urgency
The Federation said a large segment of the MSME sector remains under serious stress after years of disruptions, natural calamities and prolonged shutdowns. It noted such factors have led to the accumulation of liabilities that individual entrepreneurs could not have avoided.
While welcoming the government’s decision to revisit the industrial framework as both timely and significant, FCIK cautioned that delays in translating the policy into actionable reliefs would prolong hardship for many units and could undermine investor confidence.
Practical steps recommended
FCIK recommended that the administration consider fast-tracking certain administrative decisions that do not require full policy finalisation. These include:
- Immediate announcement of a Power Amnesty and instalment-based recovery for genuine consumption;
- Issuance of guidelines for demand-charge relief for closed or partially operating units;
- Adoption of a one-time settlement mechanism by banks for industry accounts under stress;
- Targeted support measures to restart idle units and incentivise capacity restoration.
| Measure sought | Intended effect |
|---|---|
| Power Amnesty | Waive penalties and allow instalments; restore cashflows |
| Demand-charge relief | Reduce burden for non-operational periods |
| SBI OTS-20 model via J&K Bank | Resolve stressed loans; reinstate credit |
Industry perspective and next steps
FCIK said it hopes the policy will be finalised and launched at the earliest so benefits begin flowing to enterprises without further loss of time. The Federation observed that while the full industrial policy may require completion of necessary governmental processes, certain relief measures are administratively implementable and should not be delayed.
The statement did not provide an implementation timeline or specify quantum of fiscal support; it instead focused on procedural and regulatory remedies that could be enacted quickly to stabilise the sector.
Authorities in Srinagar are yet to formally respond to the FCIK proposal. The industry body’s intervention is likely to feed into ongoing inter-departmental consultations as the administration prepares the new industrial framework for Jammu and Kashmir.
Implications: If accepted, the recommended amnesties and a bank one-time settlement mechanism could ease immediate liquidity pressures on thousands of MSMEs, prevent closures, and make the Union Territory more attractive to fresh investment. The practical challenge remains in defining eligibility, designing safeguards against misuse, and ensuring quick disbursal of relief.
Local industry representatives said timely administrative action will be critical to converting policy intent into recovery on the ground.
