In an interview to The News Now, Anoo Malhotra, JKAS, Director, Industries & Commerce Jammu, tells about how her Department is championing the revolution of industrial ecosystem of Jammu and Kashmir, and the coming stages in this regard.
- Where do you believe J&K’s industrial ecosystem, Jammu region in particular, stand?
First of all, I make a fervent appeal to the Industrial Houses to come and explore the new industrial environment developing in J&K, both in service and manufacturing sectors, having vast scope of growth with lucrative package of incentives extended by the Government.
In Jammu Division, about 6500 industrial units are functioning, thereby generating direct employments for 82000 persons. As you are aware that the Government of Jammu and Kashmir has taken new initiatives with the launch of New Central Sector Scheme and New Industrial Policy 2021-2030, all the dynamics of the Industrial Development are now altered. Jammu region alone has received investment proposals worth Rs 12,000 Crores from across the nation out of a total of Rs 25,000 Crores worth proposals received so far.
J&K is looking at a sustainable model where manufacturing and service sectors shall have a continued interest in the region keeping in view the long sustainability of units and their growth. So we are trying to build on our strengths and tap manufacturing and service sectors accordingly. In that sense, because of its connectivity, closeness to Punjab and other factors, Jammu region is becoming a production hub. New proposals of investments are coming in food processing, beverages and steel industries apart from pharmaceutical sector.
J&K’s Industrial ecosystem presents host of exciting opportunities for investors. J&K is now very well placed to take benefit of the available resources including Human Resources. Historically, we were dependent on traditional cottage Industries like Handicrafts, Handlooms, wool processing etc. Now, we are ready to welcome large enterprises with cutting edge technologies. With the backward and forward linkages of the new Industries, the socio economic profile of the local population will be significantly enhanced.
- The J&K Administration and Central Government have in recent past come up with several trailblazing policies and initiatives to give impetus to the industrial sector here. Please throw light on them. Are we looking at more policies in the future?
Both J&K Administration and Central Government have been at the forefront of incentivising investments in J&K and giving a boost to entrepreneurship.
The New Central Sector Scheme for Industrial Development of J&K has four components- Capital Investment Incentive, Capital Interest Subvention, Goods & Services Tax Linked Incentive, Working Capital Interest Subvention, these incentives are available to eligible units registered in J&K. Recently, the portal for the same was inaugurated and has been live since then for applications under the package.
The New J&K Industrial Policy 2021-30 and J&K Industrial Land Allotment Policy 2021-30 have also been notified, the focus of which is to create a conducive ecosystem for the Industry, which attracts investments in focus sectors leading to sustainable equitable, environmental friendly and balanced Industrial Development, thereby, creating employment opportunities for the youth, income generation and overall development of the region.
Government of J&K has come up with J&K Private Industrial Estate Development Policy 2021-2030 to provide an effective framework and codified land allotment in Private land holdings. Now, Industrial Estates can be developed by the Private Individuals. This new policy will have long term implications and these Private Industrial Estates will be the first of its kind in J&K.
- Some achievements of Directorate of I&C Jammu that you would like to mention.
Directorate of I&C Jammu has been working hard to implement the Local and Central polices in letter and spirit. The Directorate of I&C, through its District Industries Centres is also the implementing agency for several Centrally sponsored schemes as PMEGP, MSE-CDP etc.
We have also established one Skill Development Centre under the Capacity Development Programme for ‘Cricket Bat manufacturing’ through SGEPC (Sports Goods Export Promotion Council). The machines required for imparting training have already been installed at ITI, RS Pura. The infrastructural preparations for training programme have been completed, the enrolment of students has also commenced.
The Directorate of I&C Jammu is also closely working with Scheduled Commercial Banks for extending credit facilities to Industrial Units regardless of their size, besides for revival and rehabilitation of sick Industrial Units. In the last two years, we have sanctioned subsidies to the Industrial units amounting to Rs 110 Crores in Jammu Division.
The manpower has been trained to the best of the capacities and we help the unit holders, right from the conception of the unit to the point of the manufacturing by the unit. The response of the entrepreneurs has been very good and we are trying to provide the best possible environment. With the implementation of the Ease of Doing business reforms, we have already developed human intervention free environment and all our services are being delivered in a time bound manner. Our Grievances Redressal mechanism has also been revamped and in future we will be more effective and more efficient.
We have set up specially dedicated HRD cell to connect employers with job seekers so that the Industrial Academia gap is minimized and local youth be skilled in cutting edge technologies.
As you have seen during COVID -19 pandemic, our 24*7 oxygen monitoring room performed exceptionally well and we were able to maintain oxygen supply to all the medical institutions as well as to the individual persons requiring the same. Our Oxygen manufacturing units operated 24*7 and I am proud to tell you that there was no death because of the oxygen shortage in the Jammu region.
- Jammu and Kashmir’s first-ever and much-aggrandized Global Investors’ Summit was to be held in October 2019. The event was postponed to 2020, and road shows were held as a prelude. However the event hasn’t seen the day of light.
Yes, very true but even without the summit, we have already received proposals worth Rs 25,000 Crores. The land allotment process is underway. Soon we will be acquiring more land for the establishment of New Industrial Estates.
- You may share the name of any biggies, who have shown interest in investing J&K.
While the projects involving around 1550 Crores stand approved in Jammu Division, projects in excess of Rs 12,000 Crores are under consideration in Jammu alone.
Varun Beverages, Devyani Food Industries Ltd., Innova Captab, Associated Containers Terminal (ACTL) Samba Ltd. are some of the reputed projects that have been approved. We also have received proposals of investment from noteworthy Iron & Steel companies of the country.
- What is the status of the execution of the work at ground level for these investors? What are the obstacles cropping up?
The process of allotment of land has already been started, so that units may come into production as soon as possible.
The lack of developed Industrial Land Bank is one major hurdle in grounding of investments. Though, around 3000 acres of land has been acquired in J&K, it is currently undeveloped and lack of Industrial Infrastructure and logistics is an issue for us.
With J&K Private Industrial Estate Development Policy 2021-2030, the Government has tried to overcome this hurdle and the vision is to double the speed of setting up of Industrial Units. The growth from now onwards will be visible on the ground.
- What is the process for starting an enterprise? Different websites, authorities, are probably creating confusion.
For starting an enterprise, all you need to do is log on and register through integrated e-application on the single window portal of Investment Promotion and Facilitation Cell (IPFC Portal) for providing speedy process of issuance of licenses, clearances, i.e www.investjk.in. The Department has been working to reduce compliance burden on entrepreneurs and promote Ease of doing business.
The whole process for the registration under the NCSS and sanctioning of incentive claims will be on the online portal www.jknis.dpiit.gov.in.
- What are the plans to promote, diversify, expand and enhance competitiveness of industrial trade, including handicrafts & handlooms of J&K, in India and abroad?
For the promotion, and diversification to increase the competitiveness of the Industrial Trade we have come up with JAMMU HAAT on the lines of the DELHI HAAT. This new building has been conceived to act as a Centre for Exhibition and sale of products like Handicrafts, Handlooms, Paintings and Industrial produce. Industrialists and artisans shall be benefitted by this platform by organising of buyer seller meets and exhibitions.
Special attention is being given here for export promotion as per DGFT’s vision to make India a significant participant in the world trade by the year end and to enable the country to assume a position of leadership in the international trade discourse.
The site for the centre has been carefully selected in the heart of the city. Being well connected from all sides of Jammu, this centre is expected to have a substantial footfall. Being in close vicinity of Tawi River and some other places of interest like Hotels and shopping centres, it shall become a place of interest for the youngsters as well. It also has a potential to become a tourist hub in Jammu with a tag of genuineness for local products and also with the attraction of Local cuisines available in the premises.
You will see the footprint of the handicraft and handloom products increasing as we are tying up with the e-commerce platforms like Amazon and Flipkart to reach to the masses so that the uniqueness of our products is reflected worldwide and to give to the artisans an access to the wider market.
- How is Directorate of I&C Jammu supporting e-commerce and start-ups here?
Our District Industries Centers are equipped to cater to the new demands of the markets. We are holding seminars, awareness workshops and registering the new start ups. The start-up eco system is in its nascent stage and we will be providing best possible help to the young and the budding entrepreneurs. Our youth is one of the best. We have collaborated with Indian Institute of Integrative Medicine (IIIM) Jammu so that the ecosystem of research is readily available and the potential of these national level institutes can be harnessed.
- J&K, especially Jammu region is seeing a rise in women entrepreneurs. What are the plans for them?
In Jammu Haat, we will be giving one dedicated floor to women entrepreneurs. Under PMEGP scheme there are special incentives for the women entrepreneurs. Some of our major success stories are of women entrepreneurs.
Prevest DenPro Limited is one of the world’s leading dental materials manufacturers today. With the continued emphasis on research & development, they have been constantly expanding their product range to meet the growing needs of dental professionals. This unit is headed by Ms Namrata Modi.
The vision of Industrialization and IT Transformation, which we are working on, will enable women of J&K to run and develop their enterprises so that they become an integral part of the overall development of J&K.
- The J&K Administration has worked out 17 focus sectors that display the strength and aspirations of the UT. What steps are being taken for all these sectors?
There are 10 major service sectors that have been included under the new Central sector scheme, covering almost all the major areas viz Healthcare Services, IT & ITes, Tourism and Hospitality, Film Tourism, Ropeway Entertainment Parks and Rites, Heritage Property Restoration Services, Maintenance and Repair Services, Freight Terminals, Logistics Parks and Warehousing, Testing and R&D and certification services, Education and Skill Development Services.
In the Service sector, when the investment is more than Rs 1 Crores, all the benefits as envisaged in Central and UT Package for manufacturing sector will be available to Service sector. This will immensely impact the equitable development of all the regions of the Jammu division especially providing of Tourism and Health related infrastructure services in the remote areas of our UT.
An IT Tower is coming up at exhibition ground with an investment of Rs 50 Crores for which the land stands transferred and the construction will begin soon. A Medical city is being planned near AIIMS Jammu.
The new Film Policy stands announced which will transform the UT into the most favoured destination for the entertainment industry. The new policy will maximise the potential of local talent and also create better opportunities for many in J&K. We have set up a single-window clearance mechanism with other benefits towards the growth of J&K, besides offering Fiscal Incentives for filmmakers entering the UT. The film policy will offer a host of incentives for filmmakers coming here. The Government plans to facilitate the overall growth of the J&K Film Industry, setting up of Jammu and Kashmir Film Development Council along with easy access to the Website for Talent Pool and other shooting destinations. Other developments like infrastructure for film screening, the revival of closed cinema halls, upgradation of existing cinema halls, encouraging of multiplexes and cinema halls, destination marketing for the UT, organising festivals, and preservation of J&K Films, among others will be planned accordingly. Among other developments, the Government will further be setting up signage boards with information related to the film to attract more tourists.
The Handicrafts & Handloom sector has a unique place in the socio-economic structure of J&K. It plays a vital role in providing employment, cloth production and value addition while at the same time preserves our rich cultural heritage. The sector provides direct and indirect employment to Artisans, Weavers and Ancillary workers in the UT, mostly belonging to SC/ST, backward and economically weaker sections of the society, concentrated in rural and far flung areas. It has tremendous potential in checking urbanization as well as generating employment for women population.
Because of uniqueness and exclusivity of designs, capability to produce small batch sizes and being eco-friendly, handicrafts & handloom products are in high demand in both international as well as in the domestic markets. The sector is low energy consuming and has little adverse impact on the environment. However, the sector faces the problem of absence of systematic production lines to match demand and supply. The Directorate of Handicrafts & Handlooms Jammu is working sustainably to bridge the gap through infrastructure development, skill upgradation, design and product development, so that not only the Artisans & Weavers get better remuneration for their products but better marketing facilities too.
The Directorate of Handicrafts & Handlooms Jammu has been following the policy of promotion and encouragement of this sector through consistent hand holding in the form of welfare and promotional schemes like publicity and exhibition, reimbursement of 10 percent rebate, skill development through training programmes.
Schemes like PMEGP help to provide the easy credit to these entrepreneurs and they are getting immense benefits.
- How do you plan to address the wide range of concerns of the locals?
During the past decade, the Indian economy has focused on services rather than manufacturing. J&K is focusing on the development of its infrastructure, increasing and/or tailoring its talent pool to the needs of the manufacturing industry, attracting investment through aggressive direct investment initiatives, and increasing the ease of doing business through legal and tax reforms.
The new Industry will benefit the existing Industry, particularly the locals by the creation of significant Backward and forward linkages. The ancillarisation of activities will be a boon. Our MSMES unit will get a direct market for their products. The indirect employment, that the new Industry will generate, will also start a chain reaction.
We plan to have special emphasis on our MSME units. We are allowing the Substantial expansion of the existing units that will be incentivized too. For existing units we have come up with Turnover Incentives which is again first of its kind in J&K.
- J&K is still a laggard as far as Ease of Doing Business is considered. What are the plans to ensure better ground reality in this case and subsequently, the rankings?
To ease the business establishment process in J&K, the Industries & Commerce Department proposed a reduction of compliance burden by doing away with certain NOCs, while relaxing several pre-requisite approval/clearances for initial 2 years.
This will promptly and proportionately reduce the registration-related documentation required for setting up Red, Orange, Green and White categories of business units inside the designated industrial estates.
Those units which do not require the incentives are not required to take any documentation process with the Industries and Commerce Department. Further, Udyam has significantly reduced the paper work. The Department has been working to reduce compliance burden on entrepreneurs and promote Ease of doing business.
- J&K’s economy is fragile, and has suffered setbacks due to multiple factors such as Terrorism, Article 370, Shutdowns, Internet, and pandemic being the latest. How do you believe, it can be improved to stronger economy?
To make a stronger economy, normalcy is an absolutely essential precondition. Also, a larger investment into the development of Human resources and skilling and training of the local population is required. The investment being proposed shall also go a long way in providing employment opportunities in J&K which will help in socio-economic transformation in J&K. Now the situation has improved significantly and we are marching towards the final phase of Industrial Development in J&K.
- ‘Jammu Haat’, the first-of-its kind ‘Trade Facilitation Centre’ of J&K has come up in Jammu. Please tell us what would be Directorate I&C Jammu’s role here?
Jammu Haat has been tastefully built and has been equipped with all modern business facilities like Communication, Exhibitions and Seminar facilities etc. The Project has been completed at an estimated cost of Rs 31.63 Crores. The building consists of 7 floors including Parking Area for 50 vehicles; Ground Floor for open Exhibitions; Upper Ground, 1st and 2nd Floor consisting of 64 Shops / Stalls, 3rd Floor specially designed for women entrepreneurs and export promotion and the top floor for conferences. When the people of Jammu will visit the exhibition organised here, they will have a look at the diverse culture of the region and will also enjoy the Dogra cuisines. Industrial exhibitions will be held at national and the international level for achieving what has not been achieved till now.
Also: Read my article at The News Now
Accelerating Industrial Development: An Interview with Anoo Malhotra, Director I&C Jammu
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