Excelsior Correspondent
JAMMU, May 20: Federation of Industries Jammu (FoIJ) today drew the attention of Lt Governor Manoj Sinha towards the acute financial crisis being faced by the industrial units of J&K due to current COVID-19 situation and urged to provide financial relief to industrial sector
Lalit Mahajan, chairman FoIJ, said the MSME Sector as well as large scale units of J&K have been facing acute financial crunch due to current situation of COVID-19 and resultant sharp decline in production and sale of their products within the UT as well as in the adjoining States due to lockdown.
He said the sale of 90% of the industrial units of J&K depends on the market of Jammu & Kashmir but due to stoppage of supplies, the stocks are piling up in their units resulting into blockage of working capital.
Mahajan said that the industrial units are working in J&K at Breakeven Point in the current situation to avoid the migration of industrial workers by providing all sort of facilities to them due to which the migration is almost zero during the current period of COVID-19.
The FoIJ chairman urged the LG Manoj Sinha, Arun Kumar Mehta (Financial Commissioner, Finance Department) and R K Chhibber (Chairman, J&K Bank) for the grant of financial support to industrial sector of J&K in the form of 5% Interest Subvention up to 31-3-2022 for working capital as well as Term Loan, deferment of Term Loan installments by the Banks up to 31-3-2024, reduction of working capital margin from 25% at present to 10% till 31-3-2022, waiving off fixed demand charges by Power Development Department up to 31-3-2022 and extension of Power Amnesty Scheme up to 31-3-2022.
Mahajan also stressed for release of Funds to State Tax Department for the reimbursement of industrial units claims pending with the Department, one time extension of date for the filing of time barred cases in respect of reimbursement of SGST/CGST and 2% budgetary support by State Tax Department and release of funds for the supply of goods by industrial units to Government departments.
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