Srinagar- The closure of 701 Micro, Small, and Medium Enterprises (MSMEs) in Jammu and Kashmir over the past four years has sparked grave concerns within the industry, with the Kashmir Electrical Equipment Manufacturers Association (KEEMA) warning that the actual figures may be much higher.
“The actual number of closures is far higher, with many units shutting down silently due to unsustainable conditions,” said KEEMA Secretary General Waseem Ahmed Khateeb, emphasizing that the reported data only scratches the surface of a much deeper crisis.
KEEMA President Raja Nayeem Ahmed Khan highlighted how flawed policies are driving local industries to the brink of collapse. “Despite policies designed to uplift MSMEs, including the MSME Act of 2006, their implementation has been grossly inadequate,” Khan said, pointing to violations in public procurement processes.
Under the MSME Act, 358 items are reserved for exclusive procurement from MSEs, and 25% of public procurement is mandated to come from these enterprises. However, KEEMA criticized the Rs 5,800-crore Revamped Distribution Sector Scheme (RDSS), aimed at modernizing J&K’s power infrastructure, for bypassing these provisions.
“Tenders under the RDSS have been issued on a turnkey basis, excluding local manufacturers,” Khan said. This has resulted in 90% of key materials—such as steel tubular poles, aluminum conductors, and electrical hardware—being sourced from outside, depriving MSEs of critical opportunities.
In a statement issued by KEEMA, they said that they have already brought these issues to the attention of the Chief Minister, who assured intervention, but no concrete measures have followed. Khan warned that if the trend continues, an additional 300 MSEs could face imminent closure, with devastating effects on employment and the regional economy.
“The survival of MSMEs is vital for the economic stability of Jammu and Kashmir. Authorities must enforce MSME procurement policies and uphold the spirit of ‘Make in India’ to prevent an industrial disaster,” Khan urged.
KEEMA called for immediate action at both Union Territory and Central levels to ensure the enforcement of MSME policies. The association emphasized that the survival of local enterprises is essential to safeguard the region’s industrial growth and employment.
As the government remains under pressure to address these grievances, the fate of Jammu and Kashmir’s MSMEs hangs in the balance.
