FCIK discusses the agony of Industrial Sector with MOS Finance, GOI

Srinagar: Federation Chamber of Industries (FCIK) held a meeting with Shri Pankaj Chaudhary Ji, Minister of State for Finance, Government of India. FCIK was represented by Secretary General Mr Ovees Qadir Jamie who put a charter of demands before the MOS.
Jamie demands immediate interventions to constitute a time-bound Task Force or a High level committee for recommending slew of measures necessary for survival, revival and sustainability of business enterprises in Kashmir.
Jamie said that the Micro, Small and Medium enterprises (MSMEs) which happen to be one of the most employments generating segment of J&K’s economy was given an industrial policy in 2016 for a period of 10 years ending 2026. However, before its expiry in 2021, another policy was launched with subsequent Government orders/SROs, many of the provisions of which contradicted with the policy of 2016. One of such provisions is marketing support to MSMEs. The policy of 2016, set an obligation for government departments and PSUs to make procurements of identified goods and services required by them from local MSMEs. The incentives were afforded to local enterprises to work as cost equalizers in competition with their counterparts placed in industrially developed states.
FCIK demands to provide marketing support to local enterprises in all Government procurements and earmark a portion of recently announced PM package of incentive scheme of 28400 Crores for marketing, expansion, revival and sustainability of existing business enterprises.
Jamie said that, we have increased number of sick units that need to be rehabilitated or provided an exit route and this facility needs to be kept open for enterprises falling sick anytime in future also. The simplest way of rehabilitating sick units would be to pay an amount equivalent to 30% of their “approved revival project report” as grant-in-aid . The same percentage of 30% of bank liabilities could be approved in favour of the sick units seeking an exit route under OTS. We demand establishment of a corpus fund of ₹1000 Crores with matching contribution of ₹500 Crores each by the Central and UT governments.
He said that the reimbursement of CGST portion of tax as the valley based manufacturing and service enterprises to stand in the competition.
FCIK said that Despite “Delayed Payments Act” in force, the due payments to the enterprises are not being made in time resulting in their monetary losses besides affecting their credibility. FCIK demands for establishment of a foolproof mechanism for release of payments to supplying MSME units with a provision of mobilisation advance and on account payments.
FCIK demands Capital Infusion and liberal financing demand a “Debt-reduction package” of 30% to all MSME accounts, NPAs or inching towards stress. The incentive be also provided to enterprises seeking OTS from banks on their settled amount.
FCIK demands Repo Linked Interest Rates (RLLR) should be implied to all accounts who have restructured in Pandemic & previously. As on date the implication of RLLR is only on WCTL &GECL accounts not on other accounts of borrower of same entity. In addition, The interest subvention to the tune 5% for five years should be provided on accounts as Kashmir valley has faced the financial brunt from 2014 floods. The banks should implement the Credit Guarantee fund Scheme in Letter & Spirit as in majority cases it has been observed banks not implementing the Scheme and asking for collateral Security. The banks should defer the rating of accounts for 2 years as there has been multiple restructuring of accounts so till the time business environment will stabilize the rating should be deferred.
FCIK demands that the banks should be directed that the collateral Mortgage should not be valued below the Govt Circle value as it is the benchmark index for valuation of property issued by the Revenue Department. Further, the Land Lock property should be accepted as mortgage and accept Agriculture Land as mortgage also.
FCIK also demands Business Interruption Insurance to be introduced, Freight subsidy& Air subsidy Scheme for perishable goods, Income Tax Holiday for 10 years & Reimbursement of EPFC and ESI Contributions.

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