Gopal Sharma
JAMMU, Sept 17: With the massive rains and floods in Kashmir and other parts of the State, not only the Kashmiris, but the industrialists and traders from Jammu, Kathua and Samba areas have also suffered losses worth over Rs 550 crores in terms of blockade of their huge working capital, advance payments for goods and VAT refund amount worth over Rs 60 crores.
While the traders from Jammu have put their immediate losses including advance payments to the tune of over Rs 300 crores, the Federation of Industries (FoI) Jammu, an apex body of industrialists of Jammu region, has assessed the losses and blockade of working capital of the industrialists from the region in view of floods in Kashmir and other parts to the region worth over Rs 250 crores. They are worried that with the blockade of their working capital and VAT refund money, the industry may face closure if Government denied timely support or immediate relief.
No doubt, large part of Kashmir is still marooned in water and the traders/ businessmen whose godowns and establishments submerged in water seriously damaging their goods worth crores, but at the same time, the traders from Jammu and the industrialists have also suffered huge losses and they too are needed to be given immediate attention by the Central and the State Governments. Under the relief package announced by the Prime Minister Narendra Modi, they too, are needed to be compensated, said Annil Suri Chairman of Federation of Industries, Jammu.
The FoI chairman disclosed that as per inputs received from Kathua industrial units, goods worth over Rs 100 crores have either blocked or suffered damages in Valley floods and around Rs 100 crores from Bari Brahmana Industry whereas, the damages from Samba and Gangyal units have been put at around Rs 50 crores. He further claimed that VAT refund through SICOP to the units worth over Rs 60 crores has also been blocked with this. These figures have been generated on the basis of immediate inputs received from various local industrial bodies and some industrialists. Some more figures are still pouring in, Mr Suri maintained.
The Jammu Federation of Industries also flashed a letter to the Prime Minister Narendra Modi, inviting his special attention towards the crisis and the losses being faced by the industrialists of Jammu region in view of floods in Kashmir and the situation arisen in the State. It pointed out that the natural disaster in J&K State has badly affected the working of the industrial units. The economy has taken back seat as both the regions are inter-dependent.
Mr Suri claimed that majority of the Jammu industry supplies goods to Kashmir and other areas like Poonch and Rajouri. There is huge amount of unpaid goods supplied to various dealers which has been washed away or fully damaged in floods. Most businesses have been seriously affected some through flooding and some on account of the fact that they are dealing with the businesses or their own whose most of valuable assets and properties are now under water and are not now able to repay the credits extended.
“The Federation understands that the immediate focus of the Central and State Governments is to save lives of people but gradually we have to accept that a huge loss of business class needs to be compensated also. What is needed beyond fire fighting in the way of supplying relief, food material is immediate economic relief by way of immediate infusion of liquidity and retaining whatever is available in the system to allow the business to rebuild themselves,” Mr Suri maintained.
Co- Chairman Balbir Gupta and secretary general, FoI, Varinder Jain said that Federation has urged upon the Prime Minister to immediately intervene and provide relief/ compensation to the industrialists by way of taking several steps. It has been demanded to postpone advance Income Tax payments, allow 6-months interest free period on existing loans and reduce interest rates by at least 50 % for 5 years on existing credit, direct banks to offer liberal loans against credit by allowing 75 % cash credit limit for debts, waiving off the term loans, release the money blocked with Central Excise on account of litigation, extend Central Excise package of incentives as existed before 2008, allow IT holiday for five years and assess and compensate losses suffered by Jammu industry.
President, Chamber of Traders’ Federation (CTF), Jammu Yash Paul Gupta told the Excelsior that in this hour of crisis, the Jammu traders are fully with their Kashmiri counterparts. He said they have suffered huge losses in the floods and need immediate relief/compensation from the Government. But at the same time, the traders from Jammu are equally affected. He said food grains, pulses, mustard oil, dry fruits etc are the major components of the trade between two sides.
Mr Gupta said Jammu traders have made huge advances for dry fruits including walnut, almonds etc. With the situation arisen due to rains and floods in Kashmir and other parts of Jammu, the traders here have suffered losses/ blockade of money worth over Rs 300 crores. He said many traders have taken Bank limit and also utilized their working capital in the business. They are really in crisis with the situation and are needed to be compensated suitably along with their counterparts in Kashmir.
Arun Gupta, secretary general Chamber of Commerce and Industry, Jammu said that Jammu traders and industrialists have supplied goods worth hundreds of crores to Kashmir. Their stake is involved there. Expressing sympathy with the traders of Kashmir who suffered huge losses in floods, Mr Gupta said that these traders are needed to be provided immediate relief/ compensation. At the same time, the interests of Jammu traders should also be watched because they are equally affected with the brunt of rains and floods. When asked about the money blocked or the damages suffered by businessmen of Jammu, Mr Gupta said, “It will be premature to say anything now but we are still watching the situation and working out the figures.”
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