Excelsior Correspondent
JAMMU, Sept 10: Bari Brahmana Industries Association (BBIA) has urged upon the Governor’s Administration to provide some relaxation to the J&K industry.
In a meeting of the BBIA members held here today under the chairmanship of Lalit Mahajan, the members discussed the acute financial crisis being faced by Industrial units.
The members raised the issue with regard to current scenario prevailing in the State after the abrogation of Article 370, which results into the disruption in the supply of Industrial goods to Kashmir Valley. The Unit holders have no regular contacts with the buyers from Kashmir Valley resulting stoppage of transportation of goods to Kashmir, curtailment in the production and huge quantity of stocks piled up with the Industrial units due to which the working capital of the Units stands exhausted as they are not able to pay the GST/Power bills/Bank interest on working capital and term loan in near future.
They pointed out that in respect of reimbursement of CGST/SGST and 2% Refund claims in lieu of CST to the Industrial Units under the State package of Incentives, the claims of hundred of crores of rupees are pending with the State Commercial Taxes Department, in spite of fact that the payment should be released within 21 days from the submission of claim as per the Notification. Even the payments of Industrial units in respect of supplies made under the Shobhagya Scheme to PDD also struck up due to reasons best known to the Department.
They said that a fear of uncertainty prevails in the mind of the Industrial units holders in respect of non- working of their units in near future due to blockage of funds which may be converting their Bank accounts under NPA resulting closure of the Units and they have no option but to retrench the Industrial workers.
The BBIA has appealed the Governor to waive off Bank interest on Term Loan & Cash Credit facilities for the months of July, August & September 2019, extend the credit facility of working capital by 25% over and above the present sanctioned limit, all the accounts of MSME Sector should be treated as standard account and no account should be declared NPA and relaxation should be given in respect of NPA norms.
They also demanded that soft loans should be provided to Unit holders if needed, since maximum industry is facing financial crunch, deferment of Power bills for the month of July, August and September 2019 without any surcharge for delay payment.
Follow our WhatsApp channel