The proposals for new investments in Jammu Kashmir have triggered panic among local industrialists and business units. Industrialists in Kashmir valley who have set-up their units on smaller investments fear that their business will eventually die as bigger fish are ready to swim in the market.
Syed Tufail, who owns a glass manufacturing unit in Lassipora Pulwama is one of the many industrialists who see that his business, which provided employment to hundreds of locals is soon going to be extinct.
“It is capital that matters in business more than anything. I have invested around 2 crores in my industry. When someone comes with 2000 crore investment, it would become almost impossible for me to survive the competition,” Tufail told The Kashmiriyat.
Several youngsters of Kashmir provided business opportunities by the JKEDI on a comparatively smaller loan like that of Tufail lead production in their respective fields are anxious and say that the administration should have rather provided financial assistance to local units rather than bringing in new businesses to Kashmir.
JKEDI was established by the Farooq Abdullah led Government of Jammu Kashmir in March 1997 to effectively enable entrepreneurship development in the state.
The institute started its regular activities from February 2004 and has positioned itself as a learning centre par excellence with state-of-the-art regional centers across Jammu, Kashmir and Ladakh. Besides, JKEDI Community Organisers are in all of the 22 districts enabling entrepreneurship and promoting development at the grassroots.
More than 14000 enterprises have been established in Jammu Kashmir with active support of the institute with a success rate of 90-95%, under the JKEDI.
In April this year, Jammu Kashmir administration notified a New Industrial Policy allowing investments from outside, to invest in Jammu Kashmir and also promised land allocation to the companies.
Among the major corporate investors in the UT is Jindal Steel Works (JSW), which has been allotted land to set up a profile sheet-making unit in Lassipura Industrial Estate in Pulwama in South Kashmir. The Jindal South West (JSW) Group said that it will invest Rs 150 crore to set up a 1.2 lakh metric tonne color coated steel manufacturing facility in Jammu Kashmir, PTI had reported.
More than 400 companies, under the new Industrial policy in the Kashmir valley have approached the Jammu Kashmir administration to set-up their business units in the region. Around fifty companies are locals, while the rest belong to outside Jammu Kashmir.
One of the several non-local companies to have shown interest to set up their units is HP Kapital which comes with an investment of Rs. 2000 crore. The company that invests in and manages real estate developments, distressed commercial notes, and private equity assets has submitted a project proposal for setting up a health care centre in J-K with an investment of Rs 2000 crore.
RK Associates and Hoteliers has also proposed to invest 500 crores in Jammu Kashmir to build hotels. Similarly, Atmiya Fieldcon private limited has proposed the construction of a hospital with a cost of Rs 650 crore.
Several local companies including the FIL Industries Limited owned by Bukhari has submitted a proposal to invest 500 crores.
Jammu Kashmir Lieutenant Governor Manoj Sinha said that Rs 25,000 crore industrial investment is in the offing and the region is going to secure this huge investment after the announcement of the industrial policy soon.
Rs. 25,000 crore industrial investment is in the offing and J&K is going to secure this huge investment after announcement of a historic Industrial soon.
“My objective is maximum utilization of industries, manufacturing, services sector, village industries, handicraft, tourism, and technology to create more jobs in rural areas of Jammu & Kashmir because I believe there is vast yet untapped talent pool in our villages waiting for an opportunity,” the Lt Governor affirmed.
Pakistan’s former envoy to India Abdul Basit earlier this year said the Government of Dubai is signing an MoU with the administration of Jammu Kashmir for promoting industrial development in Jammu Kashmir.
He said that an agreement was inked between the administration of Jammu Kashmir and the government of Dubai at the Raj Bhawan in Srinagar to ramp up infrastructure and industries in the region in October.
The companies that have expressed their interest to invest in Jammu Kashmir have business interests across various sectors including manufacturing, defence, infrastructure, technology, health, information technology, skills and education, renewable energy, and hospitality.
Reliance Ammunition, Indo- American Synergy, Dalmia Cements, Shree Cements, Jackson Group, CVK Group, Jackson Group, HCH Pvt Ltd, Krishna Hydro Projects Pvt Ltd, Indian School of Business, LM Energy and Software Pvt Ltd, Paperboat Design Studios Private Limited have expressed desire to invest in Jammu Kashmir among other businesses.
Meanwhile, the Jammu Kashmir administration is freeing the land being “illegally occupied” by locals. The locals had been using the land for apple farming for several years.
The residents of Darazpora, Shopian protested against an administration order asking them to leave the land which falls close to industrial area, Lassipora, as the administration intends to hand over the land to industrial estates.
Speaking to The Kashmiriyat, the agitated locals alleged that this will snatch employment and their orchards, which are the source of their income since the last two generations. The locals said that they had worked hard to convert the barren land into orchards by their sweat and blood and now the administration intends to snatch their source of income.
The Kashmiriyat contacted Assistant Commissioner Revenue (ACR), Shopian Shahnawaz Buda, via phone call regarding the matter. He responded to us by saying that it was “State Land” and that the administration had already allotted the land to the industrial estates, earlier.
The industrial estates, however, did not need the land, then but they communicated with the Revenue Department, Shopian for demarcation, recently, and the department was delivering its job, he said.
When The Kashmiriyat asked the ACR, Shopian about the compensation to the locals, he said that the compensation will be decided by industrial estates and the administration.
The CPIM Jammu Kashmir General Secretary, while talking to The Kashmiriyat said, “Nobody objects to industrial development. Almost 60 percent of industries in Jammu are defunct. The administration should pay attention to the existing industries in Jammu Kashmir.”
He said that over 5 lakh labourers were in inhumane conditions and that there was no electricity and water for the locals. “This proves that the government wants to change the demography of Jammu Kashmir. All they intend to do is cause panic among the locals,” he added.
Malik, further, also said, “Reliance came to Jammu and people protested. People of Jammu Kashmir are against these units. Shopkeepers, handicrafts, apple industry have been impacted drastically due to the policies of the BJP Government.”