Excelsior Correspondent
JAMMU, Feb 18: Association of Small and Tiny Industries has demanded separate Industrial Policy for Micro Industry in Union Territory of Jammu and Kashmir and sought revival of sick industrial units besides resolution of problems faced by the local micro industry of Jammu region.
In a memorandum to Pashupati Kumar Paras, Union Minister for Food Processing Industry, the Association said that the Government has been taking a lot of appreciable steps to promote entrepreneurship opportunities, but the banks being an important and internal part of the policy are not playing their part honestly.
“Covid has hit our economy in a bad way, many micro units of UT of Jammu & Kashmir could not survive this impact and were forced to temporarily close their operations. As there is no policy in Jammu & Kashmir for revival of sick units thus maximum of these micro unit are still closed and have not been able to restart their operations,” reads the memorandum, signed by the Association president Harbinder Singh and others.
The Association claimed that the banks have now started classifying the loans taken by micro units as NPA even when interest is being served by the borrowers on timely basis. “Banks have been declaring these sick units as NPA merely on grounds like no sufficient transaction. Some of the bankers have been auctioning the micro units to their related property dealers,” it added.
The Association has informed the Minister that banking benefits like rescheduling/ restructuring are not being given to these sick units and instead they are forcefully being converted in to NPAs and then being put in the market for auction.
“It is requested to your good self that Government should make a separate Industrial Policy for Micro Industry of UT of J&K and constitute Government Level Committee for revival of sick Industrial Units in the region,” said the Association and also sought an enquiry to identify the reasons as to why micro units are being auctioned without giving them an opportunity to revive their units.
Trending Now
E-Paper
Follow our WhatsApp channel