Excelsior Correspondent
SRINAGAR, Oct 12: Federation Chamber of Industries, Kashmir (FCIK) in a meeting with Pankaj Chaudhary, Union Minister of State for Finance, discussed the burning issues of the Industrial Sector in Jammu and Kashmir.
FCIK was represented by secretary general, Ovees Qadir Jamie who put charter of demands before the MoS. Jamie demanded immediate interventions to constitute a time-bound Task Force or a high level committee for recommending slew of measures necessary for survival, revival and sustainability of business enterprises in Kashmir.
Jamie said that the Micro, Small and Medium enterprises (MSMEs) which happen to be one of the most employments generating segment of J&K’s economy, was given an Industrial Policy in 2016 for a period of 10 years ending 2026. However, before its expiry in 2021, another policy was launched with subsequent Government orders/SROs, many of the provisions of which contradicted with the policy of 2016.
One of such provisions is marketing support to MSMEs. The policy of 2016, set an obligation for Government departments and PSUs to make procurements of identified goods and services required by them from local MSMEs. The incentives were afforded to local enterprises to work as cost equalizers in competition with their counterparts placed in industrially developed states.
FCIK demanded to provide marketing support to local enterprises in all Government procurements and earmark a portion of recently announced PM Package of incentive scheme of 28400 Crores for marketing, expansion, revival and sustainability of existing business enterprises.
He said that the reimbursement of CGST portion of tax as the valley based manufacturing and service enterprises to stand in the competition. “Delayed Payments Act” in force, the due payments to the enterprises are not being made in time resulting in their monetary losses besides affecting their credibility. FCIK demanded establishment of a foolproof mechanism for release of payments to supplying MSME units with a provision of mobilisation advance and on account payments.
FCIK also demanded capital infusion and liberal financing demand a “debt-reduction package” of 30% to all MSME accounts, NPAs or inching towards stress. The incentive also be provided to enterprises seeking OTS from banks on their settled amount.
FCIK further demanded that the banks should be directed that the collateral mortgage should not be valued below the Govt circle value as it is the benchmark index for valuation of property issued by the Revenue Department. Further, the land lock property should be accepted as mortgage and accept Agriculture land as mortgage.
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