Reason to cheer for JK sick industries: state aid brings over 40 concerns back from brink

Reason to cheer for JK sick industries: state aid brings over 40 concerns back from brink
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SRINAGAR: The Jammu and Kashmir government’s intervention is finally paying dividends to revive sick industries in the Kashmir Valley nearly four years after the schemes were introduced.
The schemes are infusing new life into debt-ridden but market-viable industries that had shut operations for more than a decade. About 55 such industries were taken up by the state in 2014, out of which 35 are at the verge of starting, 10 are under process and only 10 have not yielded any results.
An official from the Industries department told Kashmir Reader on condition of anonymity that the one-time settlement of years of accumulated debt and the loans given on very miniscule interest have proven handy to the state’s industry sector.
“One-time settlement scheme has cleared up the debt of crores of rupees. It has also provided industrialists 30 percent of the capital money at one percent interest and 70 percent through banks at 1.5 percent less than its market rates,” said an official. “These interventions have proved successful as many have already started their operations.”
President Chamber of Sick Industries Irfan Amin is one such successful example whose debt was written off and working capital was provided to set up a furniture and furnishing industry that is aiming at doing Rs 4 crore sales next fiscal.
“My industry has debt of 40 lakh, and about 33 lakhs were written off. Now I have pushed about Rs 1.5 crore into the business which mostly I have secured through soft loan and banks. My trail production has already started successfully,” Amin, who is the representative of the sick units, told Kashmir Reader.
Irfan’s industry had become dysfunctional nearly four years after it was set up in 1998. He had gathered an accumulated debt of Rs 40 lakh until 2014, when the then National Conference-led government wrote off sick industries’ debts through a scheme.
One industry, Irfan said, had more than Rs 3.5 crore written off by the JK government. The industry was dealing in metals and had been set up in 1984. Since then, he said, the said industry had accumulated a debt of Rs 3.5 crore.
“Now the company is ready to take off,” he said. However he said the revived industries are facing bottle necks in the form of lax work culture in the government offices which is delaying their projects.
Irfan said that although the number of sick revived units is not much compared to what the total number of sick units has been, but it is still a rosy picture. In 2013, as per government figures, sick industries in the state were 200, which went up to 450 in 2015.