• Land under sick units to go under hammer
• Entrepreneur’s performance to determine lease time period
• Allotted land with only a chowkidar shed and boundary wall to be treated as vacant
The recently released new Industrial Policy – 2016 will ensure budding entrepreneurs get the land allotted for their ventures on first come first serve basis. However, if they don’t show any progress in 2 years time, the land allotted will be revoked.
Moreover, the handloom sector which employs more than 3.5 lakh people in the State, will be provided with e-commerce services in order to do away with the ‘environment of middlemen’ in the sector.
According to the policy, Director Industries and Commerce and General Manager, DIC shall determine the size of the plot as per their new guidelines. The policy also clearly states that the size of the plot shall not exceed the requirement of the forth-coming unit.
The new policy will also ensure results from entrepreneurs as the time of the land lease will be determined by their performance.
According to the report, “The land so allotted shall be given on a lease of 90 years (initially for a period of 40 years renewable at the option of the Lessor for a further period of 40 years at the time provided that the maximum period of the lease in any circumstances shall not exceed 90 years) on premium and rent as prescribed.”
Also, the policy maintains that the construction of a ‘Chowkidaar Shed’ or a ‘Boundary Wall’ shall not be considered an effective step.
“The effective steps include the construction of a building and procurement of machinery for the unit, not just mere construction of a chowkidaar shed and a boundary wall,” the policy states.
However, there are some breathers too for aspiring entrepreneurs.
If due to circumstances, the allottee wants to return the land, he or she has to do it within two years of procurement.
If done in the given time, the allottee will be given a 100 percent refund of the premium paid.
The policy also reads, “No refund shall be given after a period of two years except in circumstances which are beyond the control of the allottee.”
It also clearly mentions that land which only has a boundary wall and a shed shall be deemed vacant.
“Mere construction of a shed, boundary wall and chowkidar shed shall not exempt the land from being treated as vacant.”
Unutilized land to be retrieved
The policy also maintains that the already allotted plots which are unutilized or are more than the requirement shall be retrieved.
It also states that if an already established unit is not functional, the land will be put up for auction.
“In case of the unit being sick, the land would be put up for auction and the highest bidder will become eligible for transfer of that land for industrial purposes.”
The policy lays stress on the fact that the transferred land in no circumstances will be used for any other purpose.
Another issue which the new set-ups have to face is the lack of electricity in the state.
Industrial land prices increase
Aspiring entrepreneurs will have to shell out a more money to procure land for their units. According to the new policy, the price per kanal of land has been increased from Rs 2 Lakh to Rs 4 Lakh in the industrially developed areas which fall under Zone A. The prices in the industrially backward areas, which fall under Zone B have also been increased from Rs 1 Lakh to Rs 2.5 Lakh in Zone B. According to the policy, the prices apply to the units with 5 kanals. For units which go beyond 5 kanals, the rates per kanal will go upto Rs 8 Lakh in Zone A and good Rs 6 Lakh in Zone B.
Zone A: Srinagar, Budgam, Pulwama, Ganderbal, Baramulla and Anantnag in Kashmir region
Jammu, Undhampur, Samba and Kutha regions in Jammu region
Zone B: Kulgam, Shopian, Bandipora and Kupwara in Kashmir region
Resai, Ramban, Doda, Kishtwar, Rajouri and Poonch in Jammu region
Leh and Ladakh in Kargil region
Revival committee for sick units
The new policy also informs that a State Level Revival Committee (SLRC) has been constituted to work for the revival and rehabilitation of the micro, small and medium enterprises in distress.
However, the committee will only entertain those cases which will be referred to it by the concerned banks.
“An Asset Reconstruction Company in partnership with the J&K Bank shall be set-up for asset stripping were need be and formulate a revival package, where it is possible. Till the company is set, the state government will provide a corpus fund with an initial contribution of Rs 15 crore to the I&C Department for the revival of sick industries.”
e-commerce facility for artisans
There is good news for people related to the handicrafts and handloom sectors.
The new policy aims to minimize the presence of middlemen through e-commerce. The facility also hopes for better returns for artisans.
“The department will take steps for providing e-commerce facility for handicrafts products in both private and public sector undertakings, suitable facilities for warehousing and testing facility would be established in adequate numbers in due time, “ reads the new report.
It also adds, “As standardization of e-commerce as a brand is a time taking process, this would be largely aimed to provide better results to artisans to minimize presence and environment of middlemen in handicraft and handloom sector.”
