5 years abrogation of Article 370: Amid highs & lows, roller-coaster ride for industry

Arjun Sharma

Jammu, August 3
It was a roller-coaster ride for industries in Jammu and Kashmir, which witnessed many highs and lows during the past five years.
While the government took many initiatives to increase outside investment in J&K, the suspension of the 149-year-old practice of the “Darbar move”, in which the entire Secretariat used to shift between Jammu and Srinagar, resulted in a jolt to local businesses, which was criticised by the industry.
Major groups, including Muralitharan’s Ceylon Beverages, are setting up their plants in the UT. On the other hand, the groundbreaking ceremony of the 10 lakh sq ft Mall of Srinagar by Emaar Group of the UAE took place in March last year. The group will also build an IT tower in Jammu and Srinagar with a total investment of Rs 500 crore. Most industrial units are coming up at Kathua and Samba districts of Jammu division due to their strategic location close to Punjab.

Much needs to be done

• Local industrialists feel that even as the government introduced several initiatives, much needs to be done on the ground
• They say while big business houses get land allotment and other clearances easily, smaller businesses face hurdles

New industrial dawn
Since the abrogation of Article 370, J&K is heading towards a new industrial dawn. The government is upgrading infrastructure to support industrialisation. The future is bright for J&K with immense employment opportunities and for local businesses to grow. Manik Batra, Chairman, Assocham, J&K council

The J&K administration has started 12 policies after 2019 to attract investment in the UT, which includes the J&K Industrial Policy-2021, J&K Industrial Land Allotment Policy-2021, J&K FDI Policy-2022, J&K Tourism Policy-2020 and the J&K Film Policy-2021. Lt Governor Manoj Sinha, during the Vibrant Gujarat Global Summit in January this year, had said due to reforms and progressive policies, J&K had attracted investment proposals worth Rs 90,000 crore in a short span of time.
“J&K offers the best incentives and a supportive environment for investors. I invite industry leaders to invest in J&K and contribute to the growth journey of the UT,” he had said. However, many local industrialists feel that even as the government introduced many initiatives, much needs to be done on the ground. They say while big business houses get land allotment and other clearances easily, smaller businesses face hurdles.
A local industry owner, who has a unit in Kathua, said the single-window clearance had not been implemented properly. “An investor still has to visit different offices for power connection, pollution and land allotment,” he said.
He also pointed out that many pieces of government land in industrial estates set up in different parts of the UT were stuck in litigation, which made it difficult for investors to get these allotted in time. The government has created 46 new industrial estates, developed across different districts of the UT. Land measuring around 21,389 kanal has been identified for this purpose and over 3,000 kanal land has been transferred to the Department of Industries and Commerce.
Local members of the business community are infuriated over regular power cuts, which cause disruption in manufacturing. The Chamber of Commerce and Industry, Jammu, has raised the issue multiple times. In an RTI reply, the Department of Industries and Commerce informed that a total of 136 units were established in Kathua district from August 2019 to April 2024. As many as 48 units were established by non-residents of J&K, who brought an investment of Rs 1031.28 crore. As many as 3,691 people were provided employment through the 136 units.
Similarly, 247 industrial units were established in Samba from August 2019 to April 2024, of which 31 were set up by non-locals, who brought an investment of Rs 325.36 crore. Most of the units in Samba were small while those in Kathua were medium enterprises.
Manik Batra, Chairman, Associated Chambers of Commerce and Industry of India (ASSOCHAM), J&K Council, said, “Since the abrogation of Article 370, J&K as a UT is headed towards a new industrial dawn, the new central sector scheme is one of the best schemes across India, making J&K a preferred investment destination. The government is also upgrading the infrastructure to support the industrialisation of J&K. The future is bright for J&K with immense employment opportunities and for local businesses to grow”. As per official figures, J&K realised investments worth Rs 2,153.45 crore during 2022-23, the highest in the past decade. J&K received an investment of Rs 5,319 crore in the past five years.
Arun Gupta, president of the Chamber of Commerce and Industry, appreciated the industrial approach of the administration by saying that after the launch of the industrial policy, many new units were being set up by people from outside. “However, there is no provision for the locals who study and come back to their state so that they can set up their small units. There is little for the survival of locals,” he said.
Gupta demanded that at least 20 per cent of land in new industrial areas should be reserved for locals.
Gupta also urged the government to promote film shootings in the Jammu region. Arun Manhas, Director, Industries, Jammu, said earlier there was fear among investors to establish industrial units in J&K. “However, after abrogation of Article 370, the investment has definitely increased with major groups coming to Kathua, Samba and Jammu,” he said. Manhas said the initiatives and policies brought in by the J&K administration had bolstered the confidence of the investors from outside the UT.