Jammu, Apr 24: The Chamber of Commerce and Industry (CCI) today sought Prime Minister Manmohan Singh's intervention on the proposal of withdrawal of industrial sops from Jammu and Kashmir.

Keeping in view the withdrawal of benefits being provided by the Central Government in 2002 for the economic development of Jammu and Kashmir, none of the units in the state would be able to compete with units outside the state, CCI President Ram Sahai told reporters here.

He maintained that the said notification has jeopardised the entire process of industrial development as that would affect the investment and employment generation in the state.

The Central Government's order has practically snatched the benefits of central excise which would lead to the closure of industrial units here, he said.

Many of the local industrialists have established their new industry and many of old units have gone into substantial expansion to avail the benefits of previous notification wherein central excise duty was refundable.

The decision will cripple the economy of the state and lead to blocking of huge investment, loss of investor confidence leading to deterioration of socio-economic condition, he said.

The industry body alleged that the package of the incentives which was granted for 10 years and has been changed after the lapse of five and half years only cast aspersions on the credibility of the Central Government.