Jammu and Kashmir Government on Tuesday revoked the controversial clause of the State Industrial Policy-2016 which allowed non-locals to acquire land on large scale in the State for developing private industries.
The move comes at a time when the separatists groups had announced to launch a campaign against the policy while the opposition had termed it a “direct attack” on the special status of J&K.
“In partial modification of Government order…para 2.11.2 of Industrial Policy-2016 shall be deemed to have been deleted ab-initio,” said an order issued by Commissioner/Secretary Industries and Commerce, Shailendra Kumar, this evening.
The policy, which was approved during the Governor’s rule in March this year, had run into controversy for allowing the non-State subjects to get on lease the State/proprietary land for 90 years for setting up industries anywhere in J&K, outside the industrial units, as per the controversial para 2.11.2.
“In case of private promoters from outside (non-state subjects), JK SIDCO, SICOP may with the prior approval of the State Government acquire land through district collector on behalf of the private promoter with the cost of the land and the agency charges as may be determined provided in full by the promoter and lease it out on long term basis for 90 years (Initially for a period of 40 years, renewable at the option of lessor for a further period of 40 years at a time provided that maximum period of lease shall in no circumstances exceed 90 years) on mutually agreed terms and conditions,” read the para 2.11.2 of the original Industrial Policy.
However as per the modification in the para 2.11.2, the Government would now allow only private promoters from the State (including local industrial associations) to develop private industrial estates/parks on commercial lines on activity-specific cluster basis over an area of at least 5 acres and in case of IT Parks, the minimum requirement would be 2 acres for housing IT units in flatted accommodation.
The Government said it would go all out to attract investment in Industrial Estates or elsewhere in the State by providing an enabling environment and incentives.
“It will be ensured that these are governed by and are in compliance of J&K’s existing administrative practice, regulatory norms and the constitution of J&K,” reads the Commissioner/Secretary’s order.
Kashmir POST had on May 12 reported about the controversial clause in the policy following which the Government spokesman Naeem Akhtar had told a hurriedly-called press conference that “certain things” in the policy needed a re-look while assuring to revisit the policy to ensure there was no compromise on the State’s special status.
The State Government repeatedly came under attack from opposition in the ongoing session of the State Assembly for “allowing dilution” of the State’s special status.
However Chief Minister Mehbooba Mufti and Finance Minister Haseeb Drabu had assured the House that Government would revisit the policy to make it “more comprehensive, broad-based and inclusive without compromising J&K’s special position.”
The civil society and State industrial players have welcomed the Government move.
“The good sense has prevailed upon the Government,” said civil society member and industrialist Shakeel Qalander. “But we want that other impediments in growth of industry policy in J&K should be looked into.”
President, Federation Chambers of Industries Kashmir (FCIK), Muhammad Ashraf Mir too welcomed the move. However he said there were certain clauses in the policy which were discouraging as far as the growth of the industry was concerned.
“There is nothing in the policy for young players and startups. Where are the incentives in the policy to encourage the young industrialists?” asked Mir.
President, Kashmir Chamber of Industries and Commerce (KCCI), Mushtaq Wani said modifying the controversial clause was welcome step.
“But the Government had promised us to put the entire policy on hold to take suggestions and inputs for expansion of the industry. They have betrayed us,” said Wani.
