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Let Mufti focus on attracting private & Govt investment in industry 4/3/2015 9:46:50 PM Owing to fluid security situation in the Kashmir valley where repeated floods have added to overall scare and confusion chances of attracting central Government and private investment in the sector of industry continue to be bleak. And though the valley having been hit by severe floods have been events of the recent past but as far as the security scenario is concerned it continues to be in a state of flux during the last over two decades.Yes, there has been marked improvement in the security situation in the Kashmir valley but intermittent militancy related incidents and acts of violence continue to cause scare among those big business houses in rest of the country that are keen to set up their units in the state of Jammu and Kashmir. They lose interest once they find that Pakistani troops too add to political and security uncertainty by resorting to repeated ceasefire violations on the border in Jammu and Kashmir. Compared to the Kashmir valley the region of Jammu does not create much scare among the prospective investors because besides incident related to militancy are limited in this region and separatists presence and existence continue to be negligible in the Jammu region. During the last about 12 years the central Government and private investment in the sector of industry in Jammu and Kashmir has been very meagre.Compared to some hilly states, including Himachal and Uttrakhand, Jammu and Kashmir has been able to get a few small units established during the last 12 years. Yes, there were a number of big business houses that had shown interest in setting up their units in Jammu but the previous Governments led by National Conference, during the last over 20 years, had discouraged those investors as the National Conference, which has a strong vote bank in the Kashmir valley,wanted the investors to given preference to the Kashmir valley.But majority of those big business houses that were keen to set up units in Jammu were not prepared to risk their money by opening their units in the Kashmir valley where the atmosphere continued to be unfavourable for non-state subjects to set up industrial units. And the successive National Confer ence led Governments had failed to persuade the previous Congress led UPA Government to set up units in the state, including the promised rail coach factory.Had the public sector been motivated it would have set up some units in the state of Jammu and Kashmir. With weak industrial base the successive st ate Government were unable to resolve the problem of unemployment. Despite a number of sops given to new entrepreneurs,which include 100 per cent excise exemption for 10 years, five years' of 100 per cent income tax holiday, capital investment subsidy upto Rs.30 lakhs for thrust area project, land on 90 years lease,not many business houses were attracted to set up their u nits in Jammu and Kashmir. Yes, there were many who were interested in setting up their units in Jammu but they were discouraged by the state Government and its various agencies as these agencies wanted the industrialists to open units in Kashmir. The slow growth of the state of Jammu and Kashmir can be attributed to various factors. The climate of armed militancy in Kashmir during the past decade has been a major factor. Low productivity in agriculture and allied sectors has impeded employment and income generation. Poor industrial infrastructure along with the poor investment climate has left the industrial sector in its infant stage. There has not been a suitable strategy for the potential sectors to achieve higher economic growth. Lack of good governance and sound fiscal management has also been responsible for the poor economic growth of the state. Now that the state has a PDP-BJP coalition Government it is hoped that the new regime will not discourage big business houses who want to set up units in Jammu and not in Kashmir.In fact Chief Minister, Mufti Mohd. Sayeed, should r ealise the importance of increasing private and central Government investment in the sector of industry. Even if more units were opened in Jammu the benefit of these units will go to the entire state. This way Mufti Sayeed's top priority is to prevail upon the central Government to motivate various ministries and bid business houses for investing in the sector of industry in Jammu and Kashmir and the Mufti succeeds in this mission he would be able to resolve the problem of unemployment.   Share This News with Your Friends on Social Network     Comment on this Story

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