Excelsior Correspondent
SRINAGAR, Apr 9: Stating that all local MSMEs are eager to pay back every penny of their debt to Jammu and Kashmir Bank under a liberal OTS policy, the Federation of Chambers of Industries Kashmir (FCIK) expressed hope that such a policy would come up after the much needed Government intervention.
FCIK, while welcoming the Government decision about constitution of a high level committee for the settlement of NPA accounts of MSMEs with J&K Bank under fresh OTS, said, “It is a matter of great relief that finally the Government after acknowledging the growing confrontation between MSMEs and J&K Bank has stepped in for amicable settlement of bad loans of local MSMEs who have defaulted for slew of reasons and circumstances beyond their control.”
“Government intervention was likely to relieve MSMEs from continued stress on one side and also facilitate recovery of bad loans by the Bank on the other,” said Shahid Kamili while adding that FCIK has however demanded for co-opting the representatives from apex industrial organizations in the committee to present the viewpoint of MSMEs and analyze besides resolving the practical difficulties of enterprises in liquidating their debt.
“Linking of the OTS policy with revival and rehabilitation of sick industrial units under Government Order: 47-IND was crucial for debt liquidation besides exploring possibility for creation of a Special Asset Reconstruction Company and other options,” said Kamili, adding, assets worth hundreds of crores had been locked up in the sick industrial units which upon unlocking had the potential of generating employment for thousands of employees besides putting the infrastructure to optimal use.
Kamili hoped that with the constitution of committee, the drive by J&K Bank against MSME would be put on hold till the outcome of the committee.
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