Jammu Tawi: The Federation of Industries Jammu (FOIJ) has called for urgent pre-budget discussions with stakeholders before finalizing the budget proposals for the 2025-26 financial year, particularly regarding fiscal incentives for existing industrial units in Jammu and Kashmir. The appeal was made during an emergency meeting held today, chaired by Lalit Mahajan, with the participation of other senior members of FOIJ including Varinder Jain, Jatinder Aul, S.C. Dutta, Ajit Lal Bawa, and Raman Jolly. The members of FOIJ requested the Hon’ble Chief Minister Omar Abdullah and Deputy Chief Minister Surinder Kumar Choudhary to initiate consultations with industrial stakeholders before finalizing the budget. The meeting emphasized the need for a comprehensive dialogue with industries to ensure that fiscal incentives are provided to support the existing working industrial units of the region, which are crucial to the local economy.
Mahajan expressed deep concern over the significant reduction in fiscal incentives for the existing industrial units of Jammu and Kashmir. He pointed out that since 2021, the annual allocation for fiscal incentives has been slashed from approximately Rs. 1800 crore to just Rs. 500 crore, creating uncertainty among local industries. These units, largely owned and operated by the sons of the soil, provide direct and indirect employment to around 3 to 4 lakh local people.
Mahajan highlighted the disparity between the incentives for new industrial units and existing ones. He noted that while Rs. 2840 crore per annum has been allocated to new units under the NCSS-2021 scheme of the Government of India, the fiscal incentives for existing units have been drastically reduced, creating stiff competition and putting additional strain on older units struggling to compete. The Federation proposed that the government restore the state fiscal incentives for existing industrial units to the previous level of Rs. 1800 crore per annum. This would include turnover incentives, reimbursement of SGST/CGST, interest subvention, and additional budgetary support of Rs. 1000 crore. Mahajan concluded by urging the Chief Minister and Deputy Chief Minister to intervene and ensure that the necessary consultations take place before the finalization of the 2025-26 budget. He appealed for a return to the past practice of engaging industrial stakeholders in pre-budget discussions, a practice followed by previous popular governments.
