Rs 141 cr interest subvention payments: FCIK President Kamili thanks LG Sinha and A.K. Mehta

Ziraat Times News Network

Srinagar: Shahid Kamili, President of Federation Chamber of Industries Kashmir (FCIK) has thanked the J&K Lieutenant Governor, Manoj Sinha, LG and Dr A. K. Mehta, Financial Commissioner, Finance, J&K for releasing Rs 141 crores as part of the interest subvention of 2014 and 2016.

In a statement to Ziraat Times, Mr Kamili said “this subvention payment has given a big relief to local industry as the amounts have been credited to the borrowers accounts immediately”, adding, “we hope this 5% interest subvention for 6 months of Covid will improve the health of business borrowers’ accounts, which are otherwise in coma since August 5, 2019”.

Further, he appealed the LG to address the business community’s losses post August 5 during “the enforced lockdown wherein business community of Kashmir had to pay all interest and installments on bank loans, staff salaries and utility bills, which broke the spine of our financial plans”.

According to an earlier order issued by Dr. Arun Kumar Mehta, Financial Commissioner, Finance Department, the benefit shall be available to those borrowers whose accounts were standard on 31-07-2019 or 31-03-2020, whichever is applicable.

Pertinently, Jammu and Kashmir government early October accorded formal sanction for interest subvention of 5% in case of all borrowers, excluding borrowers under KCC, ACC, Loan against deposits, Loans under personal segments, NBFCs for a period of six months w.e.f 1st April, 2020.