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FCIK aghast over govt plan to establish packhouse in Sopore

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Seeks use of cardboard manufacturing infrastructure created by private players

BK News 

Srinagar, Jan 17: Federation of Chamber Industries Kashmir (FCIK) has demanded that government should support the existing unit holders to fulfil the demand of the packaging and has taken a strong note of the government’s plan to establish 40 MT integrated packhouse at Doabagh Sopore, as it seems that government is giving birth to one more loss-making PSU. On the one hand, the government is planning to disinvest the PSU’s and establishing of the new one seems to be a disaster and repetition of the government mistakes which is unwarranted.

In a statement, FCIK President Shahid Kamili said the establishment of a packhouse by the government at Sopore will deal a severe blow to the existing pack houses established by local entrepreneurs. Kamili said there is no need to establish additional facilities when private entrepreneurs have already established around 150 state-of-art corrugated cardboard manufacturing facilities worth Rs 750 crores at various places catering to the Valley’s horticulture produce successfully.

It said the existing installed capacity of packaging products is more than the demand of the horticulture crop from the Valley and the additional facility by the government would also be a loss-making unit.“It seems that the government has not learned from its various loss-making PSUs. This facility would not only prove white elephant for the state exchequer but will also destabilise facilities put up by the local entrepreneurs. The non-functioning of the Government PSUs have proved that the PPP models have failed. Government should instead help the existing units to give a fillip to the private sector,” said FCIK.

Stating that the packing industry is already saturated and ruthless competition has pushed the existing units to the wall, the FCIK demanded that such line of activity should not be encouraged and instead existing units should be further augmented with Government hand-holding and capital infusion. FCIK said the existing units provide employment to around 2500 youth directly and 10000 indirectly who will also stare at expulsion if a government facility comes up.

FCIK further said Government should address other important issues including the tax evasion of the horticulture packaging products coming from outside J&K which have affected the local horticulture industry badly.

In this regard, the FCIK has urged the government to impress upon the Jammu and Kashmir Horticulture Planning and Marketing Corporation to cancel the tender inviting bids for the construction of 40 MT integrated packhouse at Doabagh Sopore and also sign MoUs with existing units so that government provides them with the marketing support to their business venture. Government should take local industry leaders on board before making such decisions as the local unitholders are aware of the current industry status and how it can be promoted. As the current supply from the existing units is enough and as per the required standards which is needed to be augmented by the government hand-holding and demands marketing support.

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