Jammu & Kashmir
- Document type
- Policy
- Dated
- Category
- Policy
New Industrial Policy
JAMMU & KASHMIR
NEW INDUSTRIAL POLICY
Jammu and Kashmir witnessed industrial activity much later than other states of the country and that too at a snails pace. Besides lack of infrastructure, rail head and hilly rugged terrain, there was lack of effort also primarily as the focus remained on the traditional cottage industry. The state"s exquisite handicrafts like paper machine, wood carving, shawls and carpets remained the major source of attraction of the steate. It was only in 1961 that the Government thought of promoting industry as an organised sector and to attract entreNos.preneurs offered a package of incentives which was revised in 1972 and later in 1983. But the major effort to attract investment in the industrial sector was made by Sher-I-Kashmir, Sheikh Mohammed Abdullah in 1975 when he visited several metropolis and invited big industrial houses to come to Jammu and Kashmnir with invetment to help the government in the process of industrialization, not withstanding its locational and topographical disadvantages. In a way, he laid the firm foundation of incustrialisation of Jammu and Kashmir with a considerable success.
The state achieved another milestone in its march towards industrialization in 1978 with the introduction of the District Industries Centre Scheme. This, alongwith extension of railhead to Jammu and grant of incentives, led to the growth of an industrial culture unleashing a hope of economic development all over the state.
Outbreak of militancy negated all these efforts and damaged even the infrastructure built over the years with a huge investment. A.most all the industrial units in the valley were shut down. Even in Jammu, militancy had had its own effect on industry. During the President"s rule, another revised package of incentives was sanctioned in 1995. Despite all these incentives and efforts, the state did not have any comprehensive industrial policy.
After voted to power in October 1996, Dr Farooq Abdullah promised to give a comprehensive industrial policy to promote industry and generate employment in the militancy torn state. Accordingly, an expert team of Hyderabad was commissioned to conduct a survey and suggest measures to rlevive sick industry, put it on the sound rails and to give fillip to industrialisation. Fifty sick units were taken up for study. Meanwhile, industrial advisory committee was also constituted and the proposed policy was discussed with the doyens of industry. After a long debate within and outside the Government, on May 15, 1998, the industrial policy was finally approved by the state cabinet chaired by the Chief Minister, Dr Farooq Abdullah. Later in the day, the Industries Minister, Mr Bodhraj Bali and Forest Minister, Choudhry Mohammed Ramzan announced it at a press conference at Srinagar.
The five year industrial policy includes revised incentives involving Rs 110 crore which will generate one lakh jobs through industrial activity. It also provides for environmental preservation and pollution control while industrialising the state.