Kashmir Industrialists allege discrimination against local industries

September 15, 2025 by News Desk

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The Federation of Chambers of Industries Kashmir (FCIK) has voiced strong concern over what it described as continued discrimination against local enterprises in the rollout of the New Central Sector Scheme (NCSS).

During an interaction with the Department-Related Parliamentary Standing Committee on Commerce, chaired by Dola Sen, the chamber said that nearly 300 industrial units which began production in the past two to three years are being denied incentives, citing “fund exhaustion.”

“It is unfair to block funds for projects still on paper, while operational units are left without support. This discourages local entrepreneurs,” FCIK told the committee.

The chamber urged the government to release incentives strictly on a first-come, first-serve basis to restore confidence among existing businesses. It warned that the current approach has created a growing perception that the scheme favours outside investors and big players over local industry.

FCIK further called for policy measures requiring Central Public Sector Undertakings (CPSUs) executing projects in Jammu and Kashmir to procure at least 25 per cent of their requirements from local MSMEs. The chamber said such a step would generate jobs, strengthen local capacity, and ensure that public investments yield tangible benefits within the region.

Concerns were also raised about reviving distressed industrial units, with FCIK highlighting the absence of a dedicated framework to support them. It demanded the creation of a corpus fund and a comprehensive One-Time Settlement (OTS) scheme to give sick units “a fair chance of recovery.”