Investor confidence wavers as major firms scrap J&K plans

Srinagar: In a fresh blow to Jammu and Kashmir’s industrialisation drive, two major firms solar energy giant Grew Energy Pvt Ltd and textile leader RSWM Limited have reportedly withdrawn their proposed projects from the Union Territory.

This comes months after Sri Lankan cricket legend Muttiah Muralitharan’s Ceylon Beverages Can Pvt Ltd scrapped its ₹1,650-crore investment plan in Kathua.

Both Grew Energy and RSWM Limited have reportedly sought cancellation of the land allotted to them at the Bagthali Industrial Estate in Kathua, citing the withdrawal of central subsidies and incentives under the Jammu and Kashmir Industrial Policy 2021 as the main reason.

Grew Energy among India’s fastest-growing solar manufacturers had been allotted 222 kanals for Unit-I and 434 kanals for Unit-II last year after the fifth meeting of the Apex Level Land Allotment Committee, reports said. The land was leased for 40 years to build a solar manufacturing facility for wafers, ingots, and cells.

RSWM Limited, the flagship company of the LNJ Bhilwara Group, had received 275 kanals in the same estate to set up a textile manufacturing unit. Both companies have now withdrawn, terming the projects “financially unviable” after the expiry of key incentives.

The pullouts follow the withdrawal of Ceylon Beverages Can Pvt Ltd, which abandoned its high-profile ₹1,650-crore beverage project in Kathua in March this year after the National Sector Industrial Policy 2021 expired in September 2024. The incentives available from the Union Territory government alone, investors say, are insufficient to sustain capital-intensive projects.

The Jammu and Kashmir Industrial Policy 2021, launched shortly after the abrogation of Article 370, was billed as a game-changer to attract private investment to the region. Under the ₹28,400-crore New Central Sector Scheme for Industrial Development of J&K, investors were promised capital investment incentives, GST-linked reimbursements, and working capital subsidies.

The policy was designed to project Jammu and Kashmir as a new frontier for business, replacing the old regional industrial schemes with a uniform national-level framework.

Initially, the scheme appeared successful on paper, with over ₹90,000 crore worth of proposals announced across renewable energy, textiles, pharmaceuticals, and food processing sectors. But as the window for central incentives began expiring without extension, many investors began re-evaluating their commitments.

“The investment sentiment collapsed once the incentive period ended,” said an industrial consultant in Jammu. “These projects were structured around central support; without it, the economics don’t add up.”

Officials in the Industries and Commerce Department acknowledge that the exit of major investors like Grew Energy and RSWM has created a “confidence gap.” Despite high-profile roadshows in Delhi, Mumbai, and Dubai, actual on-ground industrialisation has remained sluggish, hindered by delays in land acquisition, logistics, and power infrastructure.