Valley industrialists seek implementation of negotiated 'resolution'

Valley industrialists seek implementation of negotiated 'resolution'
Industry suffering due to unprecedented power tariff hike: FCIK

BILAL HUSSIAN


Srinagar, July 21: With government eating the dust, the Valley industrialists have apprehensions about the implementation of a "resolution" they had negotiated with the previous Azad-led government on the controversial tariff hike.
After their persistent opposition to the tariff hike, the industrialists said, their representative body, the Federation Chamber of Industries Kashmir (FCIK) had negotiated with the former chief minister Ghulam Nabi Azad a "solution to the problem" in presence of the former industries minister and members of the cabinet committee constituted for the purpose.
However, the fall of the government has generated concerns among the industrialist fraternity who say that the resolution negotiated by the FCIK has not been implemented yet.
Requesting the governor N N Vohra to resolve the issue of the tariff hike in terms of the final negotiations held between former chief minister Ghulam Nabi Azad and FCIK team headed by president Shakeel Qalander, the federation at an executive council meet expressed hope that the fall of the government would not defeat the resolution they had reached at with the government.
The meet which was attended by presidents of various industrial estates and districts aspired for an early decision from the present administrative set up which, they said, would be considered as a gift to the otherwise suffering industrial fraternity of the state.
Giving details of the meeting held with former chief minister, the president FCIK informed the house that in terms of the final negotiations, the government had agreed that it and the industry would share the impact of tariff hike in the proportion of 75:25 initially with gradual annual increase required for total impact bearing by the industry by 2015.
The president informed that subsequent to the meeting with former chief minister, the final recommendations of the cabinet committee comprising economic advisor to Government Dr Haseeb A Drabu, Commissioner Secretary Finance B B Vyas and Commissioner Secretary GAD Basharat Ahmad Dhar had understandably submitted their final recommendations to the government for final approval of the cabinet.
He said that in absence of the cabinet, it was hoped that the Governor would approve the file at the earliest in order to extend relief to the unit holders from harsh methodology adopted by power development department in recovery of electricity tariff at revised rates from them.
Giving details of the power tariff issue, the president FCIK said that state electricity regulatory council (SERC) revised the industrial tariff with an unprecedented hike of 100-141% applicable from April 2007. The hike caused unrest among the industrial fraternity of the state and forced the major apex chambers of the state to take up united resistance against it.
The four major chambers of state viz FCIK, KCCI, FOIJ and JCCI, in a first ever joint press conference held on 13th June, 2007 said that the power hike was withdrawal of an industrial incentive before expiry of current industrial policy which was likely to shake the confidence of both existing and prospective entrepreneurs and may even contribute to abort the industrialization process in the very primitive re-starting stage after a severe set back from 18 year's of turbulent situation.
The chambers, however, made it amply clear that they were not against the reforms initiated in power sector to decrease losses and regulate supply and as such suggested to the government for payment of hiked sum to power development department by debit to industries department but, however, without any involvement of entrepreneurs, he informed.
He said that it was a matter of great relief for industry to note that the government instead of making it a prestige issue opened doors for discussions and deliberations on the matter. The state chief minister convinced with the arguments of chambers discussed the issue in two successive cabinet meetings, where in principal it was decided to compensate the impact of tariff hike.
He informed that the committee framed by the cabinet under the chairmanship of economic advisor to Government to work out modalities for said compensation had interacted with all chambers and taken their viewpoints. Subsequently the final meeting was held by former chief minister during, which the consensus on quantum of impact to be shared by the government and industry was arrived at.
Based on these negotiations, the final approval was supposed to be granted by the government which remained pending for fall of the government.
The FCIK president said that he expected resolving of all pending but burning issues of the industry by present government set up. A delegation of FCIK would soon meet the Governor to apprise him about these issues, he said