‘State must have long-term industrial incentives’
Tea with The Tribune YV Sharma, President of J&K Chamber of Commerce and Industry
Two students, Kanika Chauhan and Sonia Khajuria of the SP Smart Higher Secondary School joined The Tribune team with their queries.Jupinderjit Singh (JJS): You took over as President of the Chamber at a crucial time. Your predecessor Ram Sahai had just committed suicide, trade and commerce is in low gear.
YV Sharma: Those were difficult times. Sahai’s death was shocking. He did a lot for the trade and business of the state. I am trying to keep the focus and move ahead.
Ravi Krishnan Khajuria (RKK): What is the present status and future of industry and commerce in the state?
Sharma: We have come a long way and things are certainly improving but still a lot needs to be done. The protracted militancy had definitely cast its shadow on industry. Being at the tail-end of the country and plagued by militancy and geographical problems, we are certainly at a disadvantage, but then government has to take initiatives to bring the state on industrial map of the country.
We must have industrial incentives for a long term. The government had given excise refund in 2002, but it was partially rolled back in 2008 as a result some industries were shut. Now, the union government has announced a package for north-east and we strongly feel that it should also be extended to Jammu and Kashmir.
We have requested the Prime Minister to take a lenient view so as to bring industry back on rails in the state.
JJS: How successful was the government scheme of giving incentives to businessmen from outside the state to come and set units here?
Sharma: To realise the true benefits of a scheme, the govt should give time. The incentives were good, but many were stopped midway and industry lost momentum. We wish the present government evolves better schemes for a prolonged time to let industry flourish.
Dinesh Manhotra (DM): But the incentives, reports say, were withdrawn because of fake units that had come up. They were reaping benefits of incentives without actually doing anything.
Sharma: Black sheep are everywhere. I would not like to go into that. The government always had/have departments to check such persons. There is a system in place. As an industry representative, I would stress that benefit to real persons should always remain.
JJS: Cannot the Chamber check such persons? You can have some self regulation, some mechanism.
Sharma: No. this is not our job. The chamber is basically a bridged between the traders/industrialists and the government. We are elected to air the problems and grievances of the business community. The government has to check corruption, if there is any.
Archit Watts: What are your expectations from the state budget?
Sharma: Being a businessman and heading the Chamber of Commerce and Industries, I expect some special package for industry in the state from coming budget. The government should give some concession to the industrialists, because the state is much affected with the militants.
We are also hopeful of VAT remission. Apart from it, the taxation departments should work smoothly. We have already mooted a proposal to the state government to facilitate the traders and industrialists. Now, all depends upon the government.
Kanika Chauhan (student): The state is dependent on grants form the Centre. Why the industry cannot make the state self-sufficient?
Sharma: We have huge resources and potential. We have rich handicrafts industry as well as tourism. We also have dry fruit resources and horticulture. Still, because of terrorism and other issues, industry has lagged behind. It again depends on the government to provide us basic structure and resources to build industries on.
Sonia Khajuria: You are seeking everything from the government? Why cannot the industrialists do something on their own?
Sharma: See, the industry cannot raise infrastructure. That is government job. After all the government takes taxes and has to provide facilities. For example, the warehouse, which is the hub of industrial activity, was designed 50 years ago. If rulers of that era can have the farsight for providing such a facility, why cannot the successive or present government realise the warehouse space is, too, less. We need a new and larger space now. Every commodity that reaches here has to land at the warehouse first before it is transported further in the state. The space is, too, less now.
RKK: The state always reeled under erratic power supply coupled with low voltage. In the backdrop of such a grim power scenario how industry could flourish?
Sharma: Electricity is oxygen for industrial sector, but paradoxically from the past 20 to 25 years things have not improved much. Despite repeated requests, we are short in power supply. Considering vast hydel potential, we can become a hydel dollar state for which the government efforts need to be re-doubled.
If exploited to the fullest not only we can meet our requirements but also export electricity to other states, thereby becoming self-reliant in power sector. The CCI even suggested an atomic power plant to the Finance Minister. But because of rampant power cuts we the industrialists are virtually in tears.
RKK: Given the constraints in the form of poor power scenario, militancy and geographical location of the state, how the industry is going to flourish?
Sharma: The government has to bring its act together and improve things. Apart from poor power scenario, it has to promote indigenous trades like floriculture, horticulture, animal and sheep husbandry and fisheries.
The government has to create a congenial atmosphere and it has to devise ways and means to harness the available potential.
DM: Are you satisfied with the pace of industrial development in the state?
Sharma: The pace is needed to be accelerated. Industrial growth in the state has been going on snail’s pace. There are many reasons for that. Due to our geographical disadvantage investors usually hesitate to invest in this region and further more militancy is another reason for slow pace of industrial growth.
I want to say without hesitating that the government on its part is also not taking some effective steps. Instead of announcing incentives for short period, the government should announce a comprehensive industrial package for the fixed period. Furthermore, the government should also create adequate infrastructure for luring investors from other parts of the country in this region.
DM: Your predecessor late Ram Sahai has made the CCI a vibrant pressure group in the state. Don’t you think that it is difficult for the present team to maintain the same status?
Sharma: No doubt late Ram Sahai had contributed a lot for making the CCI a vibrant forum. It is all team effort. Being an elected body of the business community, our team will work hard to come to the expectation of the people, especially traders, businessmen and industrialists. The team is also competent enough to face any challenge. Our priority is to protect interests of those who have posed faith on us.
DM: Your short inning in the politics was not successful. Are you contemplating to join the politics again?
Sharma: I do not want to discuss my small inning in the politics. It was an experiment from which I have learnt many things.
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