CM directs restructuring of credit for 2014, 2016 losses
SRINAGAR: Announcing a major relief to young entrepreneurs of the State, the Government today decided to do away with cumbersome process of seeking NoCs from different Departments for setting up a unit and simplifying it with a one page declaration at the time of setting up a unit.
This was decided in a high level meeting chaired by Chief Minister, Mehbooba Mufti today.
As per the decision taken, any entrepreneur would be required to fill in a single page declaration form only instead of going after Departments for issuing NoC before starting a unit. However, the applicant would have to seek NoCs from Pollution Control Board and Electricity Department which also have to issue the same within 60 and 30 days respectively after which these Departments would be presumed to have issued NoCs in favour of the unit holder.
The meeting was convened by the Chief Minister in the backdrop of a session she had with some young entrepreneurs from different parts of the State on Saturday last. During the meeting the young entrepreneurs, most of them trained by EDI, flagged many of the problems, including the cumbersome process of seeking NoCs from different Departments, which were coming in their way of setting up their units successfully.
The Chief Minister had assured them to look into their grievances and convene a high level meeting shortly for redress of their issues.
Minister for Finance, Dr. Haseeb Drabu was also present in the meeting.
Another major decision taken in the meeting today was to set up a specialised unit of JK Bank at EDI to facilitate the trained entrepreneurs in a single window mechanism by hassle free credit. Similar special desks and units would be set up at regional and district levels by the JK Bank, the meeting was told. This would facilitate the entrepreneurs in easy accessibility to credit without going from one branch to another.
Addressing the meeting, the Chief Minister directed all concerned Departments to play a positive and constructive role in the successful execution of the scheme. She said JK Bank has an important role in the successful implementation of these start ups by making available hassle free credit to young entrepreneurs. She asked the Bank management to undertake capacity building of their cadre vis a vis the scheme.
Mehbooba Mufti also directed working out a mechanism to restructure the finances of the young entrepreneurs who suffered losses during the floods of 2014 and unrest of 2016.
The Chief Minister also directed to look into the issues of availability of raw material, cattle and chick feed besides other important components to ensure that these start up units don’t face any hiccups. She also directed Industries Department to take up the vacation of Micro Small & Medium Enterprises (MSME) premises at Srinagar by security forces and re functioning of the said office from there.
Chairman, JK Bank informed the meeting that no collateral guarantees are required from these entrepreneurs for credits upto a limit of Rs. 25 lakh. He said the rate of setting up of units by these EDI trained entrepreneurs has been found to be around 85%, which is highest among all the other employment generation schemes in vogue in the State.
The meeting was also informed that the 10% of space has been reserved for these young start ups at every Industrial Estate by the Industries Department. Also the process of their registration has been simplified by making it online.
The meeting also decided to introduce a Diploma course in Entrepreneurship at EDI soon which would further strengthen the concept of entrepreneurship among youth in the State.
Chief Secretary, B. B. Vyas; Chairman, JK Bank, Parvez Ahmad; Commissioner-Secretary, Finance, Navin Choudhary; Commissioner-Secretary, Industries, Shailendra Kumar; Principal Secretary to Chief Minister, Rohit Kansal; Secretary, Horticulture, M H Malik; Director, EDI, Dr M I Parray and other senior officers were present in the meeting.