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Regulatory hurdles strangle J&K MSMEs

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Regulatory hurdles strangle J&K MSMEs

Srinagar, Apr 7: Concerns are mounting among industrial stakeholders in Jammu and Kashmir over what they describe as an increasingly burdensome regulatory environment, with industry players alleging that procedures meant to promote ease of doing business have instead evolved into a complex compliance framework.

Environmental regulation, widely regarded as essential for safeguarding public health and ecological balance, mandates mechanisms such as Consent to Establish (CTE) and Consent to Operate (CTO) to ensure that industrial activity does not harm air, water, or surrounding communities.

However, industry representatives argue that the implementation of these safeguards in J&K has deviated significantly from their intended purpose.

While industrial growth remains critical for employment generation and economic development, stakeholders stress that the challenge lies in striking a balance between environmental protection and business facilitation.

This balance, they note, was central to the Government of India’s Ease of Doing Business initiative, led by the Department for Promotion of Industry and Internal Trade (DPIIT), which emphasised simplification, digitisation, and trust-based regulation, particularly for low-risk sectors.

Although similar reforms were adopted in Jammu and Kashmir in 2015, industry players allege that subsequent measures introduced by the then Jammu and Kashmir Pollution Control Board (now Pollution Control Committee) in 2018 have complicated rather than simplified procedures.

Orders governing “online” approvals for low-polluting green-category industries reportedly require extensive documentation, including project reports, environmental assessments, raw material certifications, and land records, thereby increasing compliance burdens.

Stakeholders further point out that even minor deviations in declared processes or raw materials can lead to rejection of applications, limiting operational flexibility. Additionally, industries are required to submit biannual compliance undertakings even after obtaining approvals, effectively converting long-term consents into recurring compliance obligations.

Despite the introduction of digital systems, industry representatives claim that approvals continue to be delayed, often requiring repeated physical follow-ups, inspections, and prolonged processing times.

They attribute these delays partly to administrative constraints such as staff shortages, but also highlight concerns about lack of transparency in the approval process.

The role of the Industries and Commerce Department has also come under scrutiny, with stakeholders expressing dissatisfaction over what they perceive as inaction in addressing these challenges.

Concerns intensified following instances where closure notices were reportedly issued to multiple industrial units, with copies marked to District Industries Centres for deregistration, raising fears about the viability of enterprises in the region.

Meanwhile, recent policy developments at the national level have introduced significant relaxations aimed at reducing compliance burdens.

A notification issued by the Ministry of Environment, Forest and Climate Change in January 2026 provides for extended validity of Consent to Operate, simplified fee structures, and deemed approvals for certain MSMEs operating within industrial estates. However, industry stakeholders note that these reforms have yet to be effectively implemented in Jammu and Kashmir.

The situation, according to industry representatives, reflects a broader disconnect between policy intent and on-ground execution.

They argue that while the framework of ease of doing business continues to be promoted, its implementation has resulted in increased procedural complexity, discouraging enterprise and affecting the growth of micro, small, and medium enterprises (MSMEs).

As calls grow louder for rationalisation of regulatory processes, stakeholders are urging the administration to align local practices with national reforms, ensuring that environmental safeguards are maintained without stifling industrial development.

Greater Kashmir