COVID-19 : Rescue the J&K industrial sector by providing of urgent financial stimulus

Jammu, 20-05-2021: Federation of Industries Jammu draws the kind attention of Sh. Manoj Sinha Hon’ble Lt. Governor of Union Territory of J&K towards the acute Financial crisis being faced by the Industrial Units of J&K UT due to the current COVID-19 situation in J&K.

Sh. Lalit Mahajan, Chairman FOIJ,  while conveying Heartiest thanks to Hon’ble Lt. Governor, Sh. Manoj Sinha, Sh. Arun Kumar Mehta(IAS) Financial commissioner, Finance Department, and Sh. R K Chhibber, Chairman, J&K Bank for the timely release of  3^rd Installment of 5% Interest Subvention to Industrial Sector of J&K which we termed as an instant relief during the current COVID-19 situation.

 We draw the kind attention of Hon’ble Lt. Governor towards the MSME Sector as well as Large scale Units of J&K UT facing acute Financial Crunch due to current situation of COVID-19 in the State due to sharp decline in production and sale of their products within the State of Jammu & Kashmir as well as in the adjoining States due to Lockdown Imposed in the whole of the Country.

 We further draw the kind attention of Hon’ble Lt. Governor that the sale of 90% of the Industrial Units of J&K UT depends on the market of Jammu & Kashmir but due to stoppage of supplies, the stocks are piling up in their unit resulting in blockage of Working Capital.

 It is pertinent to mention here that the Industrial Units are working in our State at Breakeven Point in the current situation to avoid the migration of Industrial Workers by providing all sort of facilities to them resulting the migration is almost zero during the current period of COVID-19.

Our Humble request to Hon’ble Lt. Governor Sh. Manoj Sinha, Sh. Arun Kumar Mehta(IAS) Financial commissioner, Finance Department & Sh. R K Chhibber, Chairman, J&K Bank for the grant of Financial  Support to the Industrial Sector of J&K with the following relief:-

• • 5% Interest Subvention up to 31-3-2022 for working Capital as well as Term Loans.

• • Deferment of Term Loan Installments by the Banks up to 31-3-2024.

• • Reduction of Working Capital Margin from 25% at present to 10% till 31-3-2022.

• • Waive off Fixed Demand Charges by Power Development Department up to 31-3-2022.

• • Extension of Power Amnesty Scheme up to 31-3-2022.

• • Release of Funds to State Tax Department for the Reimbursement of Industrial Units claims pending with the Department amounting to Approx. Rs.100 Crores up to 31-3-2021 in respect of SGST/CGST and 2% Budgetary support.

• • One time Extension of date for the filing of time-barred cases in respect of Reimbursement of SGST/CGST and 2% Budgetary support by State Tax Department.

• • Release of funds for the supply of Goods by Industrial Units to Govt. Departments.