Monetary, fiscal, financial measures must: PHDCCI J&K to MoS Finance

21 September 2021

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Srinagar, Sept 21: PHD Chamber Of Commerce Industry Kashmir represented by Mushtaq Ahmad Chaya and Baldev Singh Raina had a interactive session with Dr Bhagwat Kishanrao Karad Minister of State Finance Government of India. The meeting was organised and hosted by Chairman & CMD J&K Bank Ltd Shri R K Chibber.

The PHDCCI has advised the MOS that there is need of a combination of monetary, fiscal and financial market measures to help the businesses and people of J&K cope with the crisis. Therefore, to be able to frame correct actions and policy measures, it is important to understand clearly the specific problems that people and businesses are facing currently. This alone can enable government to take appropriate measures and PHDCCI advocated and requests the MOS following Intervention for revival of economy of J&K:

1. Suggestions for New Industrial Development Scheme

a) The present balance sheet and CIBIL Score of majority of entrepreneurs of J&K is weak and Stressed, therefore the existing entrepreneurs are ineligible to avail or apply under this new Industrial Development Scheme. We suggest that there should be one time relaxations for RBI norms for Internal/ External Credit rating of borrowers of Kashmir region and concrete efforts needs to be made so that this scheme will be made applicable for existing Industry of J&K.

b) We also Request to consider the whole Kashmir Valley under Zone –B. Keeping in view the location of the region being the Landlocked and less resources with poor connectivity with rest of Country.

2. One Time Bailout Package for Kashmir

If a difficult economic situation turns into a prolonged depression, the government will wish it started its thinking earlier about previously unthinkable ideas. The PHDCCI Kashmir suggest that only a Government Bailout Package on following terms that needs to be extended immediately :

a) Downgraded/ Non-Performing Assets:
Bailout in the form of Deep restructuring One time Settlement upto 15 years with interest deferment for 2-years with 40% Additional funding and that without downgrading the Account with special RBI relaxations in this regard.

b) ECLGS 3.0:

The Emergency Credit Line Guarantee Scheme, ECLGS 3.0 that was announced for whole Country and is applicable to Hospitality, Travel & Tourism, and Leisure & Sporting sectors and extended to aviation sectors only. The Bailout also should extend the ECLGS 3.0 to all business sectors of J&K that are in stress from last four years. The extension of the ECLGS 3.0 to all sectors of economy in J&K will surely help to revive the businesses.

c) Employment:
The Bailout Package will surely help us to retain the existing employs and will definitely provide a big opportunity to generate employment for youth of J&K. The Bailout Package could also be linked with Employment Generation.

3) Declaring Kashmir as Special Economic Zone

The meeting was also attended by Additional Chief Secretary Finance Atul Duloo, CMD J&K Bank R K Chibber, Director General Budget, Commissioner Commercial taxes , senior officers of Finance Department and senior Managment of JK Bank