Srinagar, Mar 3 (KNN) An Executive Committee Meeting of the Bari Brahmana Industries Association (BBIA) was held under the presidentship of Lalit Mahajan, focussing on the urgent need for extension of the State Fiscal Turnover Incentive and Interest Subvention under the NCSS-2021 Scheme, both of which are currently valid only until March 31, 2026.
The members expressed serious concern over the uncertainty prevailing among existing working MSME units in Jammu and Kashmir regarding the discontinuation of these incentives.
They pointed out that the State Fiscal Turnover Incentive, Interest Subvention under NCSS-2021, and reimbursement of IGST/CGST to units that undertook expansion in 2017 prior to the implementation of GST are crucial for the survival of local industries.
The withdrawal of these benefits, they cautioned, may result in the closure of a majority of MSME units in the region, jeopardising employment opportunities for lakhs of local residents.
The meeting also discussed the impact of GST 2.0 reforms, particularly the reduction of GST on corrugated boxes and food processing products. It was highlighted that nearly 150 units, 75 in Jammu and 75 in Kashmir, are at stake, as the reimbursement of GST under the State Package has effectively reduced to zero, rendering many units potentially unviable in the near future.
BBIA members further noted that the Revenue Expenditure allocation for the Industries Department in the 2026–27 Budget has been reduced to Rs 405 crore from Rs 480 crore in the previous year.
The association termed this reduction as unjustified and contrary to repeated assurances by the government regarding handholding support for local MSME units operating under challenging conditions, including locational disadvantages and limited market access.
Lalit Mahajan drew the attention of Lt. Governor Manoj Sinha, Chief Minister Omar Abdullah and Deputy Chief Minister Surinder Kumar Choudhary to the fact that no fiscal incentives under NCSS-2021 will remain available to existing working MSMEs after March 31, 2026.
He warned that established units may face closure due to stiff competition from new units set up under the NCSS-2021 scheme.
The association has urged the government to enhance the Industries Department’s budgetary allocation for 2026–27 from Rs 405 crore to Rs 1,000 crore, approximately 0.75 per cent of the total Budget Estimates, to ensure sustained handholding support.
BBIA has specifically appealed for the extension of turnover incentives, interest subvention reimbursement and GST reimbursement to safeguard the viability of MSME units adversely affected by GST reforms and changing fiscal conditions.
(KNN Bureau)
2012-01-26
