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RBI’s special liquidity window for MSMEs a good move; more steps needed: PHDCCI Kashmir chapter

Ziraat Times News

Srinagar: PHDCCI Kashmir chapter Chairman Baldev Singh Raina today hailed the central bank’s move to provide on-tap liquidity window worth ₹15,000 crore and special liquidity facility to SIDBI worth ₹16,000 with a tenor of 3 years at the repo rate to provide liquidity support to the contact-intensive sectors hit by Covid-19

In a statement to Ziraat Times, Mr Raina added that it is encouraging lending support for hotels, restaurants, tourism, aviation ancillary services, and other services including private bus operators, car repair services, rent-a-car service providers, event and conference organizers, spa clinics, and beauty parlours and saloons.

He further stated to that the industry-focused announcements like allowing banks to restructure MSME loans up to Rs 50 crore from Rs 25 crore earlier is encouraging set but we also expect that RBI keeping in view the peculiar conditions of J&K from 2019 will consider upto 200Cr and also we would request for extension of credit upto 40% to other business sectors as well under ECLGS 3.0. Mr Baldev added, that we hope that the financial institutions will pass on the benefit of repo rates to customers through this special liquidity window.

Mushtaq Ahmad Chaya, Mentor PHDCCI-Kashmir, said that tourism sectors have seen the biggest impact due to the first and second wave of CoVid and the lending support for these sector is encouraging subject to less interest rate.

Mr Chaya further added the tourism industry is ruined. The tourism stakeholders are facing a financial crisis. The financial setbacks since the last four years have broken the backbone of Tourism industry in Kashmir. Because of the present circumstances arisen due to COVID-19, it has become impossible to meet our day-to-day expenses for the hotels, restaurants, taxi operators, adventure operators, water sports operators, photographers, and all other tourism units,” said Mr Chaya, Mentor PHDCCI and Founder Grand Mumtaz Group of Hotels and Resorts. He further stated further that the tourism units of Kashmir as well as Jammu are not able to pay the interest and EMI of loans raised by them due to loss faced by the industry for the consecutive second year.

Further he said that the hoteliers, restaurants and other tourism unit owners are unable to meet staff salaries, electricity water bills and other fixed expenditures.

Mr Chaya further expressed concern over the tourism industry facing financial setbacks and urged the UT government lead by Lieutenant Governor Manoj Sinha to provide financial assistance and other reliefs to save the industry.

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