Baldev Singh, a businessman of Kashmir, has reason to term the J&K Government's third installment of the economic package as 'Eid Gift' because this step is going to provide the much-needed metaphorical Oxygen to the COVID affected trade and industrial sectors of the Union Territory.
Lieutenant Governor of J&K Manoj Sinha, on May 6 had approved the release of additional Rs 250 crore as interest subvention under economic package for revival of business and industry in J&K. He had handed over a cheque of the said amount to Jammu and Kashmir Bank Limited as the third installment of the five percent interest subvention.
"This incentive is like oxygen for industrial and trade sectors of J&K; badly affected due to Coronavirus", Baldev Singh told The International Business Times, adding, "Not only industrialists would be benefited by this incentive but it will also guarantee employment for the thousands of workforce engaged in the MSMEs across J&K".
"In my opinion, it is like Eid Gift for the residents of J&K", says Baldev Singh, proprietor of one of the prominent automobile units of the UT.
Echoing in a similar voice, Shahid Kamli, president of Federation Chamber of Industries (FCI) Kashmir observed that this step is a big boost for the dying industrial sector in Kashmir Valley. "I hailed this incentive but more such incentives required for the sustenance of MSMEs", Kamli told The International Business Times. He is of the opinion that a five percent interest subvention is beneficial in terms of working capital.
"When a business delegation from Kashmir Valley had called on Union Home Minister Amit Shah these demands were incorporated in the memorandum", he recalled and exuded confidence that administration of the Lieutenant Governor would fulfill other demands also.
"MSMEs would be the bigger beneficiaries of this incentive. Five percent interest subvention is going to give a big relief to this sector", KK Khosa, told The International Business Times. Khosa, former secretary of Association of Industries Gangyal, Jammu, said that out of the total of Rs 250 crore announced as the third installment of interest subvention, Rs 200 crore has already been disbursed.
"Steps like five percent interest subvention to every borrower from industry, 50 percent discount in electricity and water bills for a year and exemption of stamp duty up to March 2021 for borrowers are going to help J&K industry to come out of COVID impact", Khosa said. He, however, demanded that all these incentives must be extended for one more year. This, due to the second wave of the deadly virus.
The UT administration has already released Rs 500 crore so far, and on Thursday, another installment of Rs 250 crore as a 5-percent interest subvention was released as part of the overall package of Rs 1353 crore, an official spokesman said.
Immense relief for 3.44 lakh COVID affected borrowers
The decision of the J&K government to give five percent interest subvention is going to offer enormous relief to the people associated with industrial and trade sectors, across J&K. Not only 3.44 lakh borrowers would get huge relief but this step is going to ensure employment for thousands of workers, who are earning their livelihood from these units. "Functioning of MSMEs would ensure job security to the workers engage in these units", Khosa said.
Govt departments directed to make purchases from local manufacturers
Apart from interest subvention, local and MSME filters have also been operationalized on Government eMarketplace enabling all departments in J&K to procure goods and services from the local manufacturers. On March 17 this year, Finance Department had issued an official order to all administrative secretaries to make purchases from local manufacturers only.
Local and MSME filters can be used together for procurements made up to Rs 5 lakh from local manufacturers. For purchases above Rs 5 lakh, additional terms and conditions clause can be used by the departments for restricting procurement within a geographical limit. This, through the process of bidding on the Government e-Marketing.
