KCCI Delegation Meets Chief Minister: A Comprehensive Dialogue on Trade, Tourism, Environment, and Industry in Kashmir

KCCI Delegation Meets Chief Minister: A Comprehensive Dialogue on Trade, Tourism, Environment, and Industry in Kashmir

A Pivotal Meeting for Kashmir’s Economic Future

In a landmark discussion aimed at addressing economic development and sector-specific challenges, a delegation from The Kashmir Chamber of Commerce and Industry (KCCI), led by President Javid Ahmad Tenga, met with Chief Minister Omar Abdullah at the Civil Secretariat. With a comprehensive agenda, the KCCI Executive Committee, representing a broad spectrum of Kashmir’s economic landscape, presented an extensive memorandum highlighting challenges and proposing actionable solutions for industries ranging from handicrafts to tourism, horticulture, and beyond.

The Chief Minister expressed strong support for addressing these issues, emphasizing the administration’s commitment to fostering sustainable economic growth in Kashmir. The meeting underscored the KCCI’s proactive role in driving meaningful changes and the government’s willingness to engage in collaborative dialogue to resolve ongoing issues. This article delves into the key sectors discussed, offering an in-depth view of the proposed changes, anticipated impacts, and potential avenues for regional economic revitalization.

Key Highlights and Concerns Discussed

1. Revitalizing the Handicrafts Sector

One of the foremost areas of focus was the handicrafts sector—a cornerstone of Kashmir’s cultural and economic heritage. The KCCI delegation underscored the steep decline in handicraft exports, a critical issue threatening the livelihoods of countless artisans. To reverse this trend, the KCCI proposed:

  • Increased Participation in Exhibitions: Advocating for greater representation at both national and international trade exhibitions, the Chamber emphasized that this would create expanded market access for artisans and promote the uniqueness of Kashmiri handicrafts.
  • Creation of District-Specific Craft Clusters: By establishing these clusters, the KCCI believes that local crafts can be better preserved, promoted, and economically supported through collaborative infrastructure.
  • Specialized ITC (HSN) Codes for Kashmiri Handicrafts: KCCI proposed a distinct ITC (HSN) code to help identify and track Kashmiri handicrafts, aiding in market analysis, policy creation, and sector-specific tax benefits.
  • Tax and Infrastructure Reforms: Reduction of GST rates for handicrafts, the establishment of an international expo mart, and increased investment in the Craft Development Institute for workforce training were among the structural reforms suggested.

These measures are seen as essential to preserve traditional crafts while adapting to contemporary market demands.

2. Tourism Sector: Ensuring Sustainability and Growth

Tourism, a major economic driver in Kashmir, was another focal area of the meeting. Given the sector’s recent challenges, the KCCI proposed a multipronged strategy to revitalize and sustain tourism. Highlights of their proposal included:

  • Streamlining Licensing and Approvals: The KCCI urged simplification of the licensing process for hotels, houseboats, restaurants, and other tourism businesses. They also highlighted the need for timely repair and renovation permissions in key tourist areas, such as Pahalgam, Gulmarg, Sonamarg, and the LCMA jurisdiction.
  • Environmental and Infrastructure Improvements: Proposals included the installation of common sewage treatment plants and solid waste management systems to maintain the ecological balance of high-traffic tourist areas. This initiative aims to adhere to Cabinet Order No. 224-TSM of 2012, which promotes sustainability across tourist destinations.
  • MICE and Adventure Tourism Promotion: Recognizing the potential for Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism, the KCCI advocated for enhanced marketing efforts, along with expanded offerings in adventure tourism. These initiatives are aimed at broadening the appeal of Kashmir as a year-round destination.
  • Legislative Updates: Modernizing the outdated Tourist Trade Act of 1978, facilitating Leave Travel Concession (LTC) provisions for government and PSU employees during off-peak seasons, and recognizing homestays as legitimate accommodation options were also key recommendations.

By promoting sustainable tourism development and enhancing infrastructure, KCCI aims to bolster Kashmir’s tourism sector’s resilience and appeal.

3. Horticulture: Ensuring Sector Growth and Stability

The horticulture industry, a backbone of Kashmir’s rural economy, was also prioritized in the KCCI memorandum. Key proposals included:

  • Priority Lending Status for Horticulture: Designating horticulture as a priority lending sector could ensure farmers have easier access to funding, enabling them to invest in sustainable practices and modernize their operations.
  • Structured Land Allotment and Crop Diversification: A structured policy on land allotment, as well as an increased focus on crop diversification, were emphasized to promote balanced agricultural practices and mitigate risks associated with monoculture.
  • Crop Insurance and Renewable Energy Initiatives: The introduction of crop insurance solutions would provide a safety net for farmers, while the integration of solar power into horticultural processes would improve energy efficiency.

With these strategic interventions, the KCCI envisions a more sustainable, productive, and resilient horticulture sector that contributes to economic stability in Kashmir’s rural regions.

4. Industrial Sector: Fostering Growth and Innovation

In discussing the industrial sector, the KCCI underscored several policy and infrastructural changes to bolster manufacturing and services. Recommendations included:

  • Policy Simplification and Subsidies: KCCI called for streamlined industrial policies, timely disbursement of the government’s turnover incentives, and effective implementation of the New Central Sector Scheme for Jammu and Kashmir to promote industrial growth.
  • Support for Modernization and Skill Development: The establishment of specific field officers to support industrial operations, as well as prioritized skill development programs tailored to modern industry needs, were highlighted as essential steps for building a competitive workforce.
  • Resolution of Land Allocation Issues: Pending industrial land allocations, some delayed for up to four years, were also discussed, with the KCCI stressing the urgency of finalizing these assignments to prevent further hindrances to industrial growth.

The proposed changes are expected to remove bureaucratic hurdles and incentivize investment, creating a favorable environment for industrial development.

5. Banking, Financial Support, and MSME Development

The KCCI also raised significant concerns regarding financial support for small businesses and MSMEs. A few key demands included:

  • One-Time Settlement Scheme for J&K Bank: The Chamber advocated for a special One-Time Settlement (OTS) scheme by J&K Bank, without restrictive conditions, as a lifeline for struggling businesses. They also called for temporary suspension of e-auction and possession notices until the scheme’s implementation.
  • Power Amnesty and Support for Private Schools: Other recommendations included power amnesty for commercial consumers and relief for private schools facing stringent registration requirements and other regulatory challenges.

With these proposals, the KCCI aims to alleviate financial pressures on MSMEs, paving the way for business growth and economic resilience.

6. Urban Development, Infrastructure, and Environmental Sustainability

Recognizing the interconnected nature of urban planning and environmental preservation, the KCCI discussed pressing issues facing Kashmir’s urban centers. These included:

  • Parking and Smart City Project Completion: The Chamber highlighted the need for improved parking facilities and expeditious completion of pending projects under the Srinagar Smart City initiative.
  • Footpath Encroachments and Shahre Khas Development: The delegation emphasized the need for better enforcement to prevent footpath encroachment, which has negatively impacted business for decades, and a focused approach towards the development of Shahre Khas.
  • Environmental Preservation Efforts: To mitigate environmental degradation, the KCCI recommended common waste management facilities in tourist areas, conservation of wetlands, and prohibition of riverbed mining.
  • Disaster Preparedness and Rehabilitation: Given Kashmir’s vulnerability to natural disasters, the KCCI stressed the importance of disaster management planning, improved data collection on addiction, and expansion of rehabilitation centers to address the region’s social challenges.

With a strategic focus on infrastructure and environmental conservation, these initiatives aim to enhance Kashmir’s urban landscapes and promote sustainable growth.

Moving Forward: The Path to a Sustainable, Prosperous Kashmir

The KCCI delegation expressed optimism that prompt government intervention would address the challenges highlighted. Chief Minister Omar Abdullah reassured the delegation of the administration’s commitment to addressing these issues and proposed quarterly review meetings to ensure steady progress. The President of KCCI, Javid Ahmad Tenga, expressed gratitude for the platform to present these pressing issues and reiterated the Chamber’s dedication to supporting Kashmir’s economic prosperity.

Through these comprehensive discussions and the implementation of suggested reforms, Kashmir stands poised for a new era of economic growth, environmental sustainability, and social welfare, setting a model for regional development that is both inclusive and progressive.

PRESS RELEASE

KCCI DELEGATION MEETS CM TO DISCUSS TRADE, COMMERCE, TOURISM, ENVIRONMENT,INDUSTRY,CONCERNS

A delegation from The Kashmir Chamber of Commerce and Industry, led by President Javid Ahmad Tenga, met Chief Minister Omar Abdullah at the Civil Secretariat to discuss pressing issues impacting trade and commerce here.

The KCCI Executive Committee, representing various economic sectors, participated in the meeting and presented a detailed memorandum that addressed the challenges faced by the different sectors in Kashmir.

The KCCI’s memorandum raised significant concerns about the handicrafts sector, particularly highlighting the steep decline in exports. The Chamber emphasized the need for more opportunities for Kashmir Handicraft stake holders through participation in national and international exhibitions. They proposed creating district-specific clusters to promote local crafts, upgrading and expanding GI related infrastructure and manpower the Craft Development Institute to support advanced training, and assigning a separate ITC (HSN) code specifically for Kashmiri handicrafts. Additional requests included a reduction in GST rates for handicraft items, the establishment of an international expo mart, and organizing seminars focused on the revival of traditional crafts.

In the tourism sector, KCCI addressed issues such as simplifying the renewal process for tourism registration licenses to hotels, houseboats, restaurants , tour and travel trade and securing permissions for necessary repairs, renovations and upgrades in hotels at Pahalgham, Gulmarg, Sonamarg ,LCMA Jurisdiction and other areas.

They also proposed the installation of common sewage treatment plants and solid waste management systems in major tourist destinations, implementation of Cabinet order No: 224-TSM of 2012 dated 19-04-2012 related to promote sustainability. The memorandum suggested promoting sustainable development for new tourism destinations keeping regard for carrying capacity and environmental impact assessment, increasing marketing and promotional activities, and advancing MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism, as well as adventure tourism opportunities. Further points included the rationalization of service charges levied on hotel industry, recognizing homestays and paying guest accommodations as legitimate residential activities, addressing the outdated Tourist Trade Act of 1978, and resolving issues related to hotel lease cases and introducing Leave Travel Concession (LTC) for central and Public Sector Undertaking employees during lean tourist season.

The horticulture sector was another focal area, with request for categorizing horticulture as a priority lending sector, implementing a structured land allotment policy, diversifying CA infrastructure data across North and Central districts, and promoting crop diversification. The KCCI urged for crop insurance solutions and increased adoption of solar power for energy efficiency within this industry.

The KCCI also raised multiple concerns within the industrial sector, advocating for the simplification and consolidation of industrial policies, timely disbursement of the government’s turnover incentive, and efficient implementation of the New Central Sector Scheme for Jammu and Kashmir. Other key points included solar subsidies, the designation of specific field officers to support industry activities, the establishment of a cost equalizer mechanism, addressing issues stemming from the Gem Portal, the rehabilitation of ailing industrial units, handing over possession of industrial lands pending for 4 years, prioritizing skill development according to the requirements of modern times.

The KCCI demanded the announcement of a special One-Time Settlement Special (OTS) scheme by J&K Bank without riders, capping and tenure as per MSME norms in order to provide relief to traders and business owners facing financial challenges. The KCCI advocated exercising restraint on JK Bank from publishing names , e-auction and possession notices until the Special OTS is announced.. They also advocated for power amnesty for commercial consumers and highlighted challenges facing private schools and the education sector, including difficulties in renewal of registrations, tagging of private schools with Government schools, recent harsh amendments, and the requirement of numerous NOCs.

Additional aspects covered in the memorandum included the problems of shortage of parking in markets and development of Shahre Khas , completion of incomplete projects under Srinagar Smart City Projects, encroachment of footpaths resulting in business losses over decades , promotion of start-ups and women entrepreneurs, strengthening industry-academia collaboration, improving power availability during winter months, establishing a single-window system for ease of doing business, conservation efforts for environmental sustainability, the establishment of common sewage and waste management systems in tourist areas, wetland conservation , disastrous consequences of deep Riverbed mining, importance and awareness about Disaster Management in context with 2005 Earthquake , 2012-13 snow and 2014 flood disasters . The delegation also raised issues related to lack of data and shortage of rehabilitation centers to address rising drug addiction menace, illogical airport parking charges, and complications of tenants with the Waqf Board.

The delegation expressed hope for prompt government intervention to address these issues, recognizing the potential for economic growth and sustainability across all sectors. Chief Minister Mr. Omar Abdullah assured the Chamber of the administration’s commitment to support the growth of trade, commerce , industry and other issues flagged by KCCI in the region. The Chief Minister also desired the review meetings will be held every three months and also regularly remain in touch. The President KCCI thanked the Chief Minister for providing the first opportunity to KCCI for the meeting.

Faiz Ahmad Bakshi
Secretary General

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