KCCI seeks govt attention to prevailing financial situation

KCCI seeks govt attention to prevailing financial situation

Calls for formulation of proper tendering policy

SRINAGAR: The Kashmir Chamber of Commerce and Industry on Saturday asked the state government to pay close attention to the prevailing financial crisis, besides formulating a proper tendering and procurement policy in the state.
While welcoming decision of the State Administrative Council to approve reforms aimed at streamlining the functioning of Public Sector Undertakings (PSU’s), Autonomous Bodies and Societies, it expressed concern over the absence of a clear Tendering and Procurement Policy for the state which has resulted in major losses especially in the Power Sector.
It added that the absence of such a policy has hit mostly the power projects, that have suffered massive cost escalations and time delays due to the shortcomings of the present procedure of tendering and procurement.
A spokesperson of the KCCI said while that it was a long pending demand of the Kashmir Chamber that the functioning of State-owned PSU’s and other Autonomous Bodies be regulated.
“The KCCI is on record to have invited the attention of the government towards the need for unlocking of the major resources in the shape of assets and personnel by the PSU’s and their proper utilisation,” read the statement.
Adding that PSU’s have instead of providing support to the economy only managed to create liabilities running in thousands of crores on the State Exchequer and blocked revenue generating assets of equal value.
The spokesman further said that while the intent to address issues related to transparency, equity and economy of expenditure are indeed appreciable, at the same time the government needs to exercise utmost caution while dealing with financial bodies and undertakings.
It said that the reforms being long overdue, the state should be equally sensitive to the need for preserving the autonomous character of institutions and to ensure that actions and reforms do not trigger a virtual shutdown of these institutions.
Citing example of Jammu and Kashmir Bank Limited the spokesman said that the a month down the line, it appears that the normal operations of the bank has suffered a slowdown and a credit squeeze is palpable.
It said that the only news emanating is about the registration of cases and measures aimed at curtailment of powers.
The bank according to KCCI had lent significant support after the 2014 floods and post 2016 agitation, restructuring loans of browsers
“The repayment cycle of settlement of the accounts falls due around the end of this year. Taking cognisance of the condition of the economy, the state itself has declared numerous interventions seeking to support revival of the local economy,” the statement said adding that the demonetisation and the imposition of the GST, have taken away the opportunity from borrowers and the business community to develop the capacity to settle their accounts.