Srinagar, Jan 30: The Federation of Chambers of Industries Kashmir (FCIK) has solicited the intervention of Chief Minister Omar Abdullah to ensure “Ease of Living” for entrepreneurs before speaking of “Ease of Doing Business,” which in Jammu & Kashmir remains largely confined to policy papers.
On the ground, entrepreneurs spend more time navigating renewals, permissions, and NOCs across government offices than running their businesses, draining productivity, discouraging enterprise, and weakening the region’s industrial ecosystem.
FCIK has informed that entrepreneurs are forced to seek prior approvals for routine and lawful business decisions such as induction of partners or directors, change of constitution from proprietorship to partnership or company, diversification of activities, or transfer of units including to legal heirs.
“While all these actions are legally permitted, these are treated as regulatory events requiring multiple permissions in J&K”, observed FCIK, adding that in a modern business environment, entrepreneurs must be trusted to make such changes unless the activity falls under a prohibited or negative list.
Highlighting ground realities, FCIK drew attention to micro units engaged in the manufacture of wooden fruit boxes—an important seasonal industry supporting Kashmir’s horticulture sector.
These micro units face extreme difficulty in obtaining renewals from the Forest Department, for which they are required to complete number of formalities including production of consents from the Pollution Control Committee.
The Pollution Control Committee, in turn, asks these units to obtain NOCs from other departments such as Fire Services and local Bodies.
This circular process takes months, and by the time one renewal is completed, another renewal becomes due. FCIK remarked that this is the actual face of Ease of Doing Business in J&K.
FCIK noted that incentives under the Industrial Policy, including stamp duty exemptions, are applied differently by the two directorates, forgetting that the arbitrary interpretation undermines both the policy’s intent and investor confidence.
FCIK further pointed out that transfer of industrial units to legal heirs after the death of a promoter has become a prolonged and exhausting exercise involving multiple desks and repeated documentation. What should be a simple legal succession is turned into a bureaucratic ordeal, causing distress to families and disruption to ongoing businesses.
The chamber also questioned the logic behind repeated renewal of licenses and approvals. Licenses should be valid indefinitely and cancelled only in cases of serious violations or criminal acts.
FCIK noted that the recent decision of pollution authorities to grant Consent to Operate for an indefinite period unless cancelled for violations should serve as a model for other departments.
FCIK expressed concern that the Industries and Commerce Department and its allied PSUs are acting more as revenue collectors than facilitators of industrial growth. The unethical practice of non-refundable Rs.10,000 deposit for industrial plot applications penalizes aspiring entrepreneurs not allotted land and discouraging youth from pursuing entrepreneurship.
The chamber also objected to the practice of demanding additional land premiums through supplementary lease deeds for changes such as induction of partners, change of activity, change of name, or transfer to legal heirs. FCIK questioned why repeated premiums are charged for the same land already allotted as an industrial incentive.
FCIK emphasized that several states such as Telangana, Andhra Pradesh, Gujarat, Delhi, Assam, and Tamil Nadu have adopted time-bound single-window systems, self-certification, auto-renewals, and deemed approvals.
These systems reduce discretion, eliminate delays, and encourage investment without compromising compliance. Jammu & Kashmir, FCIK said, must urgently align with these national best practices.
In a pre-budget meeting with Chief Minister Omar Abdullah, FCIK placed these concerns and sought comprehensive reforms, including time-bound digital approvals with deemed clearances, self-certification for routine compliances, auto-renewal of licenses, issuance of a three-year Single Umbrella NOC, exemption and rationalisation of fees, and relief to micro units, especially wood-based industries.
FCIK has made it clear that industrial growth in Jammu & Kashmir cannot be achieved through excessive controls, repeated fees, and endless permissions. A trust-based, facilitative, and entrepreneur-friendly regulatory framework is essential if MSMEs are to survive, grow, and generate employment in the region.
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