PDD fails to release payments of SSI units

Excelsior Correspondent
JAMMU, Aug 14:   Federation of  Industries Jammu (FOIJ) has expressed serious concern over non-release of pending payments of SSI units from last six months for the supply of material to the Chief Engineer, Procurement and Material Management, Power Development Department Jammu and Kashmir against the valid supply orders.
Members present in the meeting raised serious concern in respect of pending payments worth crores of rupees since last six months. Due to delay in release of pending payments the working capital of the units stands exhausted resulting in serious financial crunch and accumulation of liability of crores of rupees.
“We fear that the unit holders have no option but to close down their units in near future resulting in retrenchment of hundreds of worker if their outstanding payments are  not released immediately,” FOIJ president Lalit Mahajan said.
Mahajan said as   per the Delayed Payment Act 2006 of  Govt of India, it is mandatory for all the Govt 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 but the concerned officials are not adhering to the guidelines of the Act for the reason best known to them.
The FOIJ President also pointed out that in spite of requisite funds allocated to all the departments, by the Govt for the clearance of material purchased by the various Govt Departments from the MSME Sector, the officials of Power Development Department did not release the payments of unit holders resulting in great inconvenience to the unit holders.
Federation of Industries, Jammu further appealed to the J&K Governor NN Vohra to  intervene into the matter  and give directions to the concerned Departments for the immediate release of pending payments of unit holders which will provide great relief to them.