Srinagar: The Jammu & Kashmir administration last week approved the amended industrial land allotment policy for large investments in the Union Territory, adding a rider that land will preferably be allotted to investors with minimum capital investment of Rs 4,000 crore.
This amendment has put the local investors and traders in a quandary, as they say the change in policy will facilitate “outsiders” and leave locals out of the race.
The Administrative Council (AC) which met on July 26 in Srinagar's Raj Bhavan under the chairmanship of Lieutenant Governor, Manoj Sinha, his lone advisor Rajeev Rai Bhatnagar, Chief Secretary Atal Dullo, and Principal Secretary to LG Mandeep K Bhandari approved proposals for transfer of 3188 kanals and 8 marlas of land to Industries and Commerce Department for development of industrial estates across Jammu and Kashmir.
The transferred land parcel includes 114 kanals and 03 marlas of land in district Kupwara, 1000 kanals of land in Bandipora, 1094 kanals and 16 marlas of land in Anantnag, 375 kanals and 06 marlas of land in Pulwama, 240 kanals of land in Baramulla and 364 kanals and 03 marlas of land in Budgam.
In the same meeting, the Administrative Council approved amendments in the Jammu and Kashmir Industrial Land Allotment Policy 2021-30. The administration claimed that the changes will "help in realizing large investments and this will be a fillip to employment generation in the UT of Jammu and Kashmir."
A press statement issued by the Department of Information and Public Relations (DIPR) said that the amendment was approved to encourage large investments having strategic importance to the economy of UT and government may allot land on preferential basis to mega projects including "industrial/service sector units with minimum capital investment (excluding land and working capital) of at least Rs 4000 crores".
"Development of Industrial infrastructures has been a focus area post 2019 and has been considered as the main vehicle for accelerating economic activity besides providing employment,” read the official statement from the administration after the meeting.
While the UT government claimed the amendment shall ensure equity and transparency amongst applicants, local factory owners and trade bodies said it will deprive local investors of a chance to get land as the capital investment of Rs 4000 crores is beyond their capacity.
Senior Vice President of Kashmir Chamber Of Commerce and Industry (KCCI), Ashaq Shangloo said that the residents of Jammu and Kashmir will have "no advantage" of this amended policy as "no local can make Rs 4000 crore investment".
"Only outsiders will benefit from this policy because no local individual can make such a huge investment. Rs 4000 crore is a huge investment and this excludes working capital and land cost. If someone from outside comes, we will welcome that, but locals cannot compete in it,” Shangloo told ETV Bharat.
"The local big industries in the horticulture sector like cold storage have a total investment of Rs 1700 crore and the few cement plants do not have more than Rs 2000 to 5000 crore investment,” he said.
Shangloo said that the KCCI has raised the concern with the government and the trade body will make an elaborate comment after getting the complete policy guidelines.
Afaq Ahmad, who runs a factory in Srinagar, said the factory owners are not against the new policies or outside investment, but these policies should not be at the cost of local industries.
"In Jammu and Kashmir, the industrial sector mostly thrives on micro and medium industries. This industry has kept the economy afloat throughout the thick and thin of the volatile situation in the last three decades. So the government must think about the local industry first before making new policies,” he told ETV Bharat.
Abrar Ahmad, a senior trade union leader, said that the locals cannot compete when the government comes out with policies which put major slabs on investment.
"This (amended policy) is a way to siphon off the resources from this place. Big investors will come here and may generate revenue or employment, but will they last longer like the local industries sustained? Locals are not being facilitated as they face hindrances and other obstacles in establishing their factories,” he told ETV Bharat.
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