FCIK appeals for release of payments of MSMEs, says payments of erring officers should be delayed to make them ‘feel the pinch’

The Federation Chamber of Industries Kashmir (FCIK) has said the delay of payment to Micro, Small and Medium Enterprises (MSME) has weakened their growth and most of these are on the verge of becoming NPAs.

Making an appeal to the government to release long-pending payments as assured by Government of India, FCIK said that if this is not done these MSMEs “will crumble under the burden of debt”.

In a press statement, FCKI’s Publicity Secretary Ghulam Jeelani said that these MSMEs have been paying huge interest on the borrowed capital from financial institutions.

“Most of the supplying units have paid more interest on the blocked capital than what they had thought of earning from the venture and the process is still on,” Jeelani said.

Talking about a meeting held by the FCIK, Jeelani said, “the issue of payment amounting to Rs 33 Cr on account of supplies made under scheme SAUBHAGYA to PDD was discussed, and an MOU between Principal Secretary Industries & Commerce, Comm. Secretary PDD, MD JKSICOP and representatives from MSMEs (FCIK) was signed on 11th September, 2018 for supply of Steel Tubular Poles etc. Subsequently the order was placed with JK SICOP after deliberations and a special discount on the rates was demanded and offered. These supplies amounting to Rs 250 Cr. approximately were to be supplied in a time bound manner and payment was assured within 10 days on consignment basis and laid down in the MOU.”

The press statement added, “due to the urgency expressed by the officials of PDD and the commitments made the unit holders put their best and all-out efforts to make it a success. The supplies were effected as per the timeline fixed to the entire satisfaction of the deptt and PDD also bagged an award of Rs100 Cr. from GOI for timely completion and being ahead of all other states of the country. Initially the payments were released as per the MOU but to our surprise and dismay the Deptt started abusing and disrespecting the MOU after this and a payment of about Rs 33 Cr. from Kashmir division alone is still pending in spite of the issue raised at various foras like Lt. Governor, Chief Secretary, Principal Sec I&C Comm. Secretary PDD, besides Union Ministers Home, Commerce & Finance.”

Talking about the issue of attracting investments from investors based outside JK, FCIK said that the claims of Govt. for establishing industries and making JK self-reliant ‘seems a distant dream under these situations’.

“How can these units thrive when the supplies from MSMEs are received well in time but payments are delayed even when the MSME delayed payment act is in force and assures payment within 45 days & delay beyond this invites 3 times interest. The Govt on one hand is mulling ways to attract investments for Industrial development of the State but simultaneously seems ignorant about the plight of the investments already made by the local investors, despite all odds for the last couple of decades,” the statement said.

FCIK said that it would appreciate if the salaries of erring officers are stopped/delayed so that they also realise the position of these MSME units and would thus feel the pinch of delayed livelihood.


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