Rahul Sahai Chairperson PHDCCI calls on CS Atal Dulloo; highlights challenges in industrial sector

JAMMU July 23: Rahul Sahai Chair PHD Chamber of Commerce & Industry (PHDCCI), Jammu Chapter led a delegation to interact with Shri Atal Dulloo, Chief Secretary of Jammu & Kashmir and said is grateful to for the opportunity to present key suggestions and issues concerning the upcoming and existing industries in Jammu. Sahai submitted representation highlighted several critical areas needing urgent attention for development Industries in J&K .

Sahai said for new industries, the primary concern is the power availability in Ghati/Samba , where only 160 MW of the promised 320 MW is functional. We urge the expeditious commissioning of the remaining 160 MW to enable ready units to commence production. Additionally, the separation of industry feeders from residential and commercial connections is requested to ensure uninterrupted power supply to existing industries as well .

PHDCCI Jammu also sought an extension of the NCSS application date beyond 30th September 2024, along with an increased budget to attract more investors. The need for quicker processing of documents and permissions for NCSS application submissions was stressed, with a suggestion to set maximum time limits for each type of permission to streamline the process. A single window system is advocated to facilitate faster approvals of noc’s required for registration in NCSS Package .

Rahul Sahai chair PHDCCI Jammu said Private land acquisition for industrial use remains challenging due to various land classifications such as Gair Mumkin Khad and Jarh , janglat etc. We request the formation of a committee to address these issues, allowing private industrial estate owners to deliver land to industrialists promptly. The unavailability of a permanent Sub Registrar in Kathua is also hampering land registration processes, and we urge the appointment of an efficient and permanent Sub Registrar in this high-demand industrial town.

For existing industries ,Sahai emphasized the need for equal benefits under the NCSS 2021 package to keep them viable. Delays in CGST reimbursement are causing significant financial strain, and we request a special meeting with the finance department to expedite the clearing of these bills. Local entrepreneurs should also be given priority, with expedited handover of Balol land to benefit from the NCSS 2021 package.

Further Sahai said The allocation of alternate sites for unsuitable industrial estates like Meencharakan is necessary, and safeguards should be in place to promote Tiny, Micro, and Small Industries led by local domiciles. Modern facilities such as water, waste disposal, residential accommodation, and other amenities should be provided in new industrial estates under development. The current rent and maintenance charges for residential quarters in old industrial estates managed by J&K SIDCO are unsustainable and need a thorough review. Lastly, ensuring 24-hour power availability is crucial for the smooth operation of existing industries.

Rahul Sahai Chair PHDCCI Jammu also highlighted concerns of Automobile industry of J&K with Shri Atal Dulloo, Chief Secretary of Jammu & Kashmir for his consideration  

The representation highlights the problem of unauthorized sales channels in the automobile sector. Car brokers operating without authorization or trade certificates are negatively impacting legitimate automobile dealers in J&K and causing significant revenue losses to the Union Territory. To address this, PHDCCI recommends imposing an additional tax on vehicles purchased from outside J&K, similar to successful measures in Himachal Pradesh and Chandigarh.

Clarification is sought on the Motor Vehicle Tax (Token/Road Tax) for vehicles in J&K due to conflicting notifications. The Ministry of Road Transport and Highways and the J&K Finance Department have differing guidelines on whether the tax should be calculated excluding or including GST. A clear directive is essential for consistent implementation.

Under the Vehicle Scrappage Policy, PHDCCI suggests offering registration tax discounts on new vehicles after scrapping old ones. This move is expected to boost demand for new vehicles, increase state revenue through GST and road tax, reduce pollution, and enhance safety. Punjab and Chandigarh provide similar concessions, serving as viable models.

PHDCCI also addresses the redundant physical inspections of new commercial vehicles, despite them having valid type approvals and being listed on the VAHAN portal. The chamber advocates for the elimination of these inspections to align with other states and promote ease of doing business.

To encourage eco-friendly transportation, PHDCCI proposes a 100% road tax exemption for hybrid vehicles, akin to policies in Chandigarh and Uttar Pradesh. This initiative would support the adoption of greener vehicles and contribute to a cleaner environment in J&K.

The formation of an automobile service center cluster in industrial areas across J&K is recommended to achieve economies of scale, streamline supply chains, and enhance service quality. This initiative would create employment opportunities, attract investments, and foster the growth of the automotive industry.

For ease of doing business, PHDCCI suggests implementing a “One State One Trade Certificate” policy. Currently, dealers need separate trade certificates for each district, complicating operations. A unified trade certificate would simplify the process and promote business efficiency across J&K.

Lastly, PHDCCI highlights the absence of CNG/PNG infrastructure in J&K, unlike neighbouring states that benefit from these economical and eco-friendly fuel options. Addressing this gap would provide substantial savings for residents and support environmental sustainability.

PHDCCI Jammu is optimistic that these recommendations will significantly improve the business landscape in Jammu and Kashmir, fostering economic growth and enhancing the quality of life for its residents.