Srinagar, Mar 28: The promise of “ease of doing business” in Jammu and Kashmir is increasingly being questioned, with entrepreneurs alleging prolonged delays in getting possession of industrial land despite completing all formalities and making full payments.
The industrial land allotment mechanism, introduced under Government Order No. 65-IND of 2021 dated March 24, 2021, was projected as a key reform to promote investment through a transparent, fully online single-window system. The policy aimed at minimal human interface and time-bound clearances, requiring applicants to submit proposals digitally, upload Detailed Project Reports (DPRs), and pay a non-refundable processing fee ranging from Rs 10,000 to Rs 50,000.
However, stakeholders say the system has failed to deliver on the ground. While applications are processed online, entrepreneurs claim the process still involves prolonged engagement with multiple departments, including power, revenue, pollution control, and financial institutions, each functioning independently.
“The single-window system is only the starting point. After that, we are left dealing with multiple offices for years,” said an entrepreneur awaiting possession of his allotted land.
The issue is particularly acute in industrial estates such as Tulbal in Sopore and Sempora in Pampore, where entrepreneurs allege that even after allotment and execution of lease agreements, possession has not been handed over for over three years.
Former president of Sopore Industrial Estate, Javid Ahmad Bhat, highlighted inconsistencies in handling land earmarked for industrial use. “A total of 490 kanal was earmarked for the estate, but now queries are being raised on the same land,” he said, questioning the role of officials who initiated the process and collected payments.
“Applications were invited, money was taken, and lease deeds were executed. If there are issues now, those responsible should be held accountable,” he added.
In Pampore, more than 100 entrepreneurs have raised similar concerns. In a joint representation, 117 lessees said they were allotted plots in March 2022 but are still awaiting possession.
The process began after notification of industrial estates under Government Order No. 117-IND of 2021 dated April 19, 2021, under the J&K Industrial Policy 2021. Applications were invited in June 2021 for land allotment in a proposed IT Park at Sampora.
Subsequently, the site was shifted to a brick and tile factory location in Pampore, identified as a new industrial estate. A total of 238 applications were received, with Rs 10,000 collected from each applicant as processing fee, amounting to Rs 23.8 lakh.
Land allotments were finalised in March 2022. Selected applicants paid a premium of Rs 5 lakh per kanal, along with annual rent of Rs 4,500 plus GST per kanal, advance rent for three years, and maintenance charges.
According to the lessees, 115 unit holders completed all formalities by March 2023, and lease deeds were executed on March 2, 2023. As per the agreement, possession was to be handed over within 15 days.
“More than three years have passed, but possession has not been given. Our capital is locked, and projects remain stalled,” a lessee said.
Entrepreneurs attribute the delay to litigation and stay orders obtained by certain individuals, raising concerns over why land was allotted and payments collected without ensuring it was free from encumbrances.
The policy’s evaluation mechanism has also come under scrutiny. Stakeholders allege that Land Allotment Committees rely heavily on projected investment and employment figures in DPRs, without adequate verification.
“Applicants showing higher projections are preferred, while genuine cases are often sidelined,” said a businessman.
Even where possession has been granted, entrepreneurs report delays in securing bank loans, electricity connections, and pollution clearances, making it difficult to begin operations within stipulated timelines.
“We are required to start production within a fixed timeframe, but approvals take years. If we fail, penalties are imposed,” said an industrial unit holder.
Observers say lack of coordination among departments and absence of effective monitoring have worsened the situation. “There is no mechanism to track progress or resolve bottlenecks. Each department works in isolation, and the entrepreneur suffers,” said a member of an industrial association.
Stakeholders believe the situation reflects a wider gap between policy intent and ground reality, with the much-publicised “ease of doing business” framework yet to translate into actual ease for investors.
(This is the second part of a series examining the ground realities of the “Ease of Doing Business” framework in Jammu and Kashmir.)
