Stakeholders welcome proposal to modify Industrial Policy

Srinagar, Dec 25: Industrial stakeholders in Kashmir have broadly welcomed the Jammu and Kashmir government’s proposal to amend the Industrial Policy 2021–30, terming it a long-pending demand aimed at removing ambiguities and easing procedural hurdles faced by entrepreneurs.

The proposed overhaul of the policy, for which the government has sought stakeholder feedback, has raised expectations within the industrial community, particularly among MSMEs operating in industrial estates across the Valley. Industry representatives say the existing framework, especially in matters related to land transactions and restructuring of industrial units, has often proved cumbersome and time-consuming.

Former President, Federation Chambers of Industry Kashmir (FCIK), Syed Shakeel Qalander, said the proposed amendments address concerns that have been flagged repeatedly over the years. “This was a demand of almost every industrialist and industrial unit. There were ambiguities in the policy that needed to be addressed. The government has done well to initiate this process. It is a welcome move,” he told Greater Kashmir.

Qalander said stakeholders would be submitting detailed feedback to the government, adding that there had also been “disparity between regions” in the interpretation and implementation of policy provisions. “We will come up with a comprehensive response so that the final amendments truly reflect the needs of industries on the ground,” he said.

Among the key suggestions being discussed by stakeholders is a comprehensive exemption from stamp duty and court fees for internal restructuring and land-related transactions within notified industrial estates, both government and private. Industry representatives argue that such changes, including the conversion of partnerships into companies, change in directors or partners, or mortgaging of leasehold rights for loans, are essential for business growth and do not amount to the sale of proprietary land.

Stakeholders have also called for the restoration of simplified document registration practices that existed earlier, saying the current requirement of formal asset valuation and imposition of stamp duty on leased land has created avoidable financial and procedural burdens. According to them, this has discouraged legitimate business restructuring, diversification and mergers.

Another major demand relates to explicit exemption for corporatisation within the same promoter or family group. Industrialists say that when ownership remains unchanged, levy of stamp duty and court fees penalises entrepreneurs for adopting better corporate governance structures and hampers formalisation of MSMEs.

Industry bodies have further suggested that approval powers for such exempted transactions be delegated to district-level authorities, particularly General Managers of District Industries Centres, to ensure single-window clearances and fixed accountability.

Stakeholders believe that if incorporated, these amendments would significantly improve ease of doing business, reduce discretionary interpretation of rules, and help position Jammu and Kashmir as a more competitive and industry-friendly investment destination.