Jammu and Kashmir will host its first-ever investor summit in September-October of this year in Srinagar — with a chapter in Jammu — to attract investment and counter perceptions about the State.
Government officials said they are expecting participation from at least eight countries besides the rest of India. The State is presently under President’s Rule, which was extended by another six months last week after a vote in Parliament.
“The strong points of the State are, of course, tourism, horticulture and handicrafts. The stress would be on some of these sectors, along with the power sector and manufacturing,” said an official.
Speaking to The Hindu , Chairman of the Jammu and Kashmir Chamber of Commerce Sheikh Ashiq Ahmad said the image of the State as strife ridden has often come in the way of drumming up business, as well as negative perception by the national media.
“Whenever we have travelled out of the State on road shows to promote tourism, the perception of the State via the media has come in the way,” he said. “Every small incident of violence is blown up and shown on TV,” Mr. Ahmad added.
The investors summit, it is hoped, will change such perceptions about the State, which ranks third in the number of people holding government jobs due to a lack of other avenues.
Another sticking point is land. Laws governing ownership of land do not allow non-State subjects (who are not permanent residents of Jammu and Kashmir) to purchase land or immoveable property in the State.
However, the Land Grants Bill, passed by the government headed by late Shaikh Abdullah in 1978, allows the government to lease out land to outsiders for 99 years. The State government can designate lands as industrial and offer long term leases, but a suggestion that land outside of industrial parks could be given out on lease has met with stiff resistance from various quarters of civil society. The proposal was sent for a review by the BJP-PDP government.
“That, however, is not the only sticking point with regard to land. Suppose a business turns turtle and banks need to foreclose on assets; then leased land cannot be considered under the foreclosure. This reduces the assets that can be sold off to pay off loans during bankruptcy procedures. This directly affects the loans available for businesses. All these issues will, hopefully, be discussed and some way forward can be found,” said a government official.
