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| Minister's ambiguous order raises eyebrows | | | Akshay Azad
Early Time Report
Jammu, Aug 16: The order of the ministry of industry and commerce in the name of 'Ease of Doing Business' and simplification of procedures for setting up and facilitating the Industry in Jammu and Kashmir has come under scanner as stake holders allege that the order is infested with ambiguities and is alleged to have been designed to extend undue favours to certain quarters.
According to the order number 105-IND of 2015, dated 21/7/2015, it provided for a 'Single Window Clearance Committee' at district angned to divisional levels in respect of Micro, Small and Medium enterprises.
"For the reasons unknown, District Manager/Representative of Chairman of J&K Bank along with two members of Industrial Association have been included as members, whereas none of them has any clearance to accord in respect of setting up of an industrial unit", sources informed.
"It may not be out of place to mention that the Industrial associations practically exist only in Gangyal and Bari Brahmana where democratic process is followed and elections are held regularly, rest all of the so called Associations have self styled Presidents and Chairman since no elections have ever been held in Samba, Kathua or Udhampur Districts for electing the office bearers", sources said.
According to the order, in another major shift, the process of Toll exemption has been made a baby of Finance department on self certification basis by the promoters. "This move is bound to encourage trading of material imported against Toll exemption, in the local market thereby hurting the interests of business class and swindling of public money which is already scanty with the government", sources said.
Sources further informed that the said order has the potential of encouraging land mafia and pave way for looting the state exchequer by unscrupulous persons as the said order provided for import and export of material after availing tax exemptions without any checks and balances on self certification basis.
Furthermore, as per order, a divisional Level Committee has been formed under the Chairmanship of Director Industries & Commerce for sanctioning of incentives under State Package. "The move is aimed at withdrawal of authority, already delegated to General Managers of District Industries Centres under the prevailing Industrial Policy where General Manager of DIC is the sanctioning & disbursing authority in respect of State incentives pertaining to installation of laboratory equipments and diesel generating sets", sources said.
The delegation of powers to General Managers vide the said government order regarding renewal of provisional certificate, sources said, is against the provisions of MSMED Act 2006,which does not provide for any provision of renewal of the same.
"The move is seen as succumbing to the pressure of land mafia active in the Industrial Estates to avoid cancellation of plots where no effective steps have been taken for setting up of the industrial units within the prescribed period of two years and thereby putting a halt to illegal sale purchase of government industrial land", sources said.
Sources further said that the cancellation of idle plots would have resulted in making them available for young and well meaning entrepreneurs. "This move, according to order, is an anti youth move, who are budding entrepreneurs and can't have resources to purchase land at exorbitant price dictated by the land mafia", sources said.
"The land which is provided to the entrepreneurs at a nominal rate of Rs. 2 lakhs per Kanal is being sold at Rs. 12 to 14 lakhs by the land mafia thereby depriving the young and serious entrepreneurs to establish their units who can't afford to buy land at such a high rate from the land mafia", sources said.
To make things worse sources said, according to order, the enclosed checklist is also full of ambiguity as no where it is made clear whether these apply for provisionally registered or permanently registered units.
"Further it has also not been made clear in the order, whether the delegation also applies to activities placed under restricted category", sources said.
Moreover, sources said according to the order, the withdrawal of powers for change of location and change of line of activity from General Managers and authorising the Single Window clearance Committee for the same, shall result in delays and would slow down industrialization process, sources said. |
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