FCIK statement draws flak

‘Rs 8,000 cr annual GST revenue to J&K has NO base’
BILAL HUSSAIN
SRINAGAR: The apex business chamber of the valley— Kashmir Chamber of Commerce and Industry (KCCI) — today contested the figures spelled by the president of an industrial body, Federation Chamber of Industries Kashmir (FCIK), Shakeel Qalander, of “Jammu and Kashmir could earn a whopping Rs 8,000 crore annually by switching over to the proposed Goods and Service Tax (GST)”.
In a joint meeting of the KCCI, the Kashmir Traders and Manufacturers Federation (KTMF), Kashmir Hotel and Restaurant Association (KHARA), Travel Agents Society of Kashmir (TASK), Houseboat Owner’s Association and the Kashmiri Handicraft Manufacturers and Exporters Association took a serious note of the statement by Qalander and all the organizations unanimously condemned the statement made by the Qalander regarding the implementation of GST. It was noted that the statement concerned the entire business fraternity of Kashmir and the Qalander had “No authority or mandate to speak on issues that concerned sectors not under the purview FCIK”.
It was unanimously decided to caution such elements from issuing statements which are detrimental to the interests of the Trade, Commerce and Industry of Kashmir.
The statement of the prez FCIK regarding implementation of GST which appeared in the press on February 1, 2010. The meeting was presided over by Abdul Hamid Punjabi, Senior Vice President, KCCI.
While talking to Kashmir Times Hamid Punjabi said, “Quoting fanatic figures of the annual revenue given out by the prez FCIK by the state government holds NO ground,” The figure of Rs 8,000 crore annually draw severe criticism. While as basic aspects of GST like slabs/rates of tax to be levied, list of exemptions, revenue neutral rate, actual assesses base and other issues are yet to finalized, “the calculation of any figure at this stage is rubbish,” Hamid Punjabi said.

Noted economist of the Valley, Professor Nisar Ali, told Kashmir Times over phone from New Delhi, “I don’t think the state would be able to manage such huge amount by the implementation of GST. It is too high an estimate.”
Prof Ali said that before going for implementation of GST in the state, the government has to focus on infrastructure and capacity building, which are pre-requisites for GST implementation in the state.
The allegation regarding undervaluation of bills was also condemned in the meeting. “Since valuation of bills whether was not even remotely concerning their organization, it is unfortunate that such uncalled for remarks had been made which had hurt the sentiments of the trading community,” said Hamid Punjabi.
President KHARA, Siraj Ahmad on the same said that a person who he representing a tiny sect of industry should not go beyond and cross the limits. “Qalander has no right to speak on our part. He has NO mandate to issue such a statement. If at all he want to please the government, he can do at personnel level not at our stake.”
President KCCI Nazir Ahmad Dar said that finance minister, Abdal Rahim Rather, on it said that the imposition of new tax regime needs discussion, so let us wait for it. “All stakeholders need to be taken on board before implementing it in the state.”
President KTMF, Mohammad Sadiq Baqal said the state finance minister has assured them to defer the implementation of the proposed GST system in the state. Reacting to the statement by Qalander in the press that the new tax is expected to check the undervaluation of bills for the goods imported into the state. “There is no question about the undervaluation here,” Baqal said.
Reacting to it prez FCIK, Shakeel Qalander, told it would be more than Rs 8000 crore. “We would soon be providing the details and calculation.”

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

Ban on shahtoosh ‘unwarranted’

Ban on shahtoosh ‘unwarranted’
BILAL HUSSAIN
Srinagar, June 21: The local industrialists today demanded lifting of ban on shahtoosh. The industrialists raised this demand at a meeting with Union Minister for Textiles, Shankersinh Vaghela. The meeting held under the aegis of Federation Chamber of Industries Kashmir discussed the proposal of revival of industry with the union minister. Giving details of the meeting president FCIK, Syed Shakeel Qalander told Greater Kashmir that the federation members apprised the union minister of the problems J&K faces on account of its “isolation, backwardness, poor connectivity, and rising unemployment.” He said the incessant incertitude prevailing in the state for almost two decades now has added to the miseries of people. The FCIK, Qalandar said, informed the minister that the ban on the manufacture and trade of Shahtoosh is unwarranted as “no the notion created about the killing of Tibetan antelopes was totally false.” He said the animal during the summer due to heat rubs itself with the bushes in the higher altitudes in Leh. “Later that wool is collected and weaved by the artisans. As such the textile ministry is duty bound to remove the false propaganda and protect this finest woolen article from going into extinction.” Qalander said the union minister had a positive view on the issue. Union Minster, according to Qalandar, said the state government should formally write to New Delhi seeking review the case. Qalandar said the handicraft industry, given its enormous potential, is one of the main drivers of the economic development in Kashmir. “It deserves an overall and focused attention from the economists, policymakers, financial institutions, banks, other relevant agencies as well as the civil society,” he said. Qalandar said it was unfortunate that over the years the handicraft sector has witnessed drastic reduction in its workforce. He said from approximately 15 lakh artisans in 1970s the figure has gone down to less than 3 lakh at present, and decreased the production in carpet, shawls, silk textiles, crewel cloth, et al. “The reasons behind the decrease in employment and production in the handicraft sector could be attributed to the reason that the artisans who crafted the articles through involvement of their skill and great sense did not get adequate returns for sustenance,” he said. In order to bring the handicraft back its pristine glory, the FCIK asked for some initiatives from union textile ministry. The FCIK demanded grant of scheme for Integrated Textile Parks. “We are aware that Ministry of textiles provides grant support for establishment of textile parks under the SITP, and one such park for J&K is under its consideration,” he said. The units engaged in production of textile items in Kashmir are very small, decentralized and operate as cottage industries. The need of the hour is to organize them in specific locations supported by good quality infrastructure in the form of industrial parks, he said.

Srinagar gets Rs 15 cr IICT, CDI

Srinagar gets Rs 15 cr IICT, CDI
Another raw material bank on anvil
BILAL HUSSAIN
Srinagar, June 21: Union Minister for Textiles, Shankersinh Vaghela today inaugurated two premier institutions, Indian Institute of Carpet Technology and Craft Development Institute, both developed at a cost of Rs 15 crore. The two institutes at Bag-e-Ali Mardan here would serve as the hub to promote variety of handicraft activities for artisans, entrepreneurs, exporters and other stakeholders in the sector. Chief minister Ghulam Nabi Azad on the occasion said: “There are artisans in every nook and corner of the state who are dependent on the traditional handicraft sector in Kashmir and the two institutes would help them a great deal in their art and craft.” “The IICT, which has been set up at a total cost of Rs 5.45 crore,” Azad said, “would provide support to local carpet and allied industry through HRD, design creation development, and technical services to the industry.” CM said there are over 3.5 lakh artisans in the state. “Artisans should pass their art to their children but at the same time should provide them quality education,” he said. “It is indeed a matter of pride that soon this institute is likely to receive ISO certification,” the CM said. Azad urged for a mix of technology and craftsmanship to promote Kashmir handicrafts, adding that matching of the two would meet the global market demand of handicrafts products, both in design and quality The Chief Minister said that J&K annually produced handicrafts worth Rs. 1600 crore of which exports account for Rs. 1400 crore. He said the exports include Rs. 1200 crore worth carpets alone. He asked the artisans to increase the handicrafts exports to Rs. 2000 crore in next two years by applying modern technology made available by the newly set up institutes. The CDI, which has been set up at a total project cost of Rs 9.14 crore would provide research and development facilities in the field of managerial and process testing, filed studies, ecological issues, process related issues as per craft and subjects, geographical rights and IPR issues. In addition the CDI would provide off campus linkages for networking, cell extensions and income generation with IIT, IIM, agricultural universities, and NGOs. “We are going to launch another raw material bank in Srinagar. The project has been sanctioned in favor of J&K State Forest Corporation for firewood, khutmband craft at a cost of Rs 2 crore,” the CM said. The setting up of this raw material bank in this craft will ensure easy availability of quality, certified and graded raw material to the artisans at a reasonable rate. Minister of state for Industries and Commerce, Nawang Ringzin Jora, on the occasion said the J&K is an important manufacturing and export hub for the handicrafts producing diverse and intricately woven carpets, fine quality embroidered pashmina shawls, paper machie and wood carvings items. Vaghela said there is a huge demand for the handicraft world over and the Kashmir handicraft and handloom could cater to it. “We would increase the stipend of artisans by 50 per cent. We will extend our support in whatever way we could,” he said. To Azad’s request, the union minister for textiles said, “We would support the two institutes for next five years.”