FCIK for immedaite release of payments to MSMEs for supplies sent to power department

SRINAGAR: Federation Chamber of Industries Kashmir(FCIK) has called for immediate release of paymenst due to MSMEs for the supplies thay have made under GoI Saubhagya scheme to JK PDD.
The payment according to chamber from concerned Administrative Department for Scheme Saubhagya (for these supplies) has been received by MD KPDCL in the month of February 2020, but same has not been released to JK SICOP, MSME’s even on the festival of Eid due to official apathy in the system and lacklustre approach of the department.
It added that the callous approach of the government officials at the helm can be gauged from the fact that even when the businesses are closed for the last couple of months, economy shattered beyond repairs, they are sleeping over the issue, having no sense of stressed economy, making these MSME’s suffer for no fault of theirs and remain oblivious to the conditions, tragedies, pain, sufferings and costs they have to bear.
In a meeting of office bearers of FCIK was held on Thursday at FCIK Headquarters Sanat Nagar and the issue of payments pending on account of supplies made by MSME’s was discussed.
It was impressed upon that an amount of Rs 200 Cr. approximately is pending from various Govt. Departments, PSU’s, etc. on account of supplies made which needs an immediate attention and redressal.
More over the issue of payment amounting to Rs 33 Cr on account of supplies made under scheme SAUBHAGYA to PDD was emphatically discussed, where in an MOU between Principal Secretary Industries & Commerce, Comm. Secretary PDD, MD JKSICOP and representatives from MSMEs (FCIK) was signed on 11th September,2018 for supply of Steel Tubular Poles etc. Subsequently the order was placed with JK SICOP after deliberations and a special discount on the rates was demanded and offered.
These supplies according to Chamber amounting to Rs 250 Cr. approximately were to be supplied in a time bound manner and payment was assured within 10 days on consignment basis and laid down in the MOU .Due to the urgency expressed by the officials of PDD and the commitments made the unit holders put their best and all out efforts to make it a success. The supplies were effected as per the timeline fixed to the entire satisfaction of the deptt and PDD also bagged an award of Rs100 Cr. from GOI for timely completion and being ahead of all other states of the country. Initially the payments were released as per the MOU but to our surprise and dismay the Deptt started abusing and disrespecting the MOU after this and a payment of about Rs 33 Cr. from Kashmir division alone is still pending in spite of the issue raised at various foras like LG, Chief Secretary, Principal Sec I&C Comm. Secretary PDD, besides Union Ministers Home, Commerce & Finance.
This delay of payment to MSME’s has weakened their growth and most of these are on the verge of becoming NPA’s and have been paying huge interest on the borrowed capital from financial institutions. Most of the supplying units have paid more interest on the blocked capital than what they had thought of earning from the venture and the process is on.
How can these units thrive when the supplies from MSME’s are received well in time but payments are delayed even when the MSME delayed payment act is in force and assures payment within 45 days & delay beyond this invites 3 times interest.
It said that releasing this payment would ease them from the burden of paying any further interest to the financial institutions and would act as a STIMULUS for revival of their businesses, this being their own hard earned money/ capital.
The chamber called for immediate and appropriate steps for safeguarding the health of these MSMEs by releasing the long pending payments as assured in the MOU and by GOI or else these will crumble under the burden of debt, many will be rendered jobless thus further addition to the unemployment.
It added that FCIK would also appreciate if the salaries of these erring officers are stopped/ delayed for couple of months so that they also realise the position of these MSME units and would thus feel the pinch of delayed livelihood.

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