Excelsior Correspondent
JAMMU, Dec 5: Laghu Udyog Bharti (Ind Area Gangyal), Jammu has sought urgent support from the Union Government as many units in J&K have suffered huge losses due to restrictions in J&K after abrogation of special status of the State.
In a communication to the Union Minister of State for Finance, Anurag Thakur, the LUB, has expressed that Industry in Jammu region, particularly dealing in manufacturing and sale of finished goods/ products in J&K only, has suffered massive set back due to restrictions imposed in J&K. Most of the places in J&K are continuously facing hardships due to lack of communication services. It has become totally difficult for the industries here to sell their manufactured finished products smoothly as was happening in the past. With this, the industry has been bound to curtail/minimize its production.
Referring to the effects of the situation, the LUB in its letter to MOS conveyed that due to shut down in Kashmir, communication restrictions, there is no regular sale. Production in the units has gone to its low. Liability of the factories, its staff has been rising every day. There is no realization of funds against the goods supplied prior to re-organisation of J&K. The liabilities of making payment s to the Govt in the shape of electric bills have piled up.
The estimated losses to the units has gone up to Rs 5000 crores in respect of production and Rs 500 crores in cash towards payments being made on account of wages, bank interest, power bills etc. Majority of the units have failed to get their returns timely against the supply of their goods. They ultimately declared and brought under NPA.
Under such circumstances many units are facing closure. The Govt must take effective measures to save these units from closure. The LUB demanded to waive off interest on loans/ working capital taken from Banks, power bills from August 2019 onwards and provide fiscal incentives to the units, the LUB communication said.
Follow our WhatsApp channel