Grievances of industrialists

On the one hand the Government is enthusiastic about expansion of industries in the State and on the other hand it is creating hurdles in the way of expansion. This appears self contradictory but the example of how payment to the tune of crores of rupees of GI Pipes suppliers remains withheld for a long time shows that there is something inherently wrong in the system that makes the industrialists skeptical about the intentions of the Government.
In a meeting of the Bari Brahmana Industries Association (BBIA) serious concerns were expressed by the members of the Association about payment pendency to the tune of 20 crores of rupees for a long time with very adverse impact on the smooth running of these industries. Owing to blockage of funds, working capital limits of these units stand exhausted resulting in serious financial crunch as the unit holders face accumulated liability of crores of rupees for more than a year. Adverse consequence of this ground situation is that the industries have to be shut down and a large number of labourers will be laid off. Despite repeated reminders to the Chief Engineer PHE Department Jammu and Kashmir, no action has been taken to ensure that withheld funds are released as the supplies have been made against genuine orders. Huge funds stand blocked in the shape of supplies dumped in the warehouse. The notable point is that there is a standing order under Delayed Payment Act 2006 of Government of India, according to which it is mandatory for all the Government  departments to release the payment of SSI Sector within 45 days from the date of receipt of material otherwise the department is bound to  pay the interest on the delayed payment. Nobody adheres to the provisions of the Act. The result is that the claims amounting to crores of rupees are lying pending with the Chairman MSME, Facilitation Council, Jammu for the recovery of the amount. We would urge upon the Engineering Department concerned to look into this complaint and resolve it as early as possible.

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