Srinagar, Aug 2: The Federation of Chambers of Industries Kashmir (FCIK) has regretted that various government guidelines and policies on revival and rehabilitation of sick industrial enterprises were not being honoured in J&K.
While expressing concern over the growing sickness in MSMEs in J&K, FCIK has regretted that “the role of I&C Department in analyzing and addressing this critical issue in consonance with the laid down policies and guidelines issued both by J&K and central governments was abysmal and disappointing.”
“Whereas the sickness in industrial units is a global and normal phenomenon, the growing sickness in industry in J&K had multiple reasons mostly beyond the control of entrepreneurs which needed to be ascertained and analysed for an appropriate recourse by the governments”, FCIK said in a statement to Ziraat Times.
FCIK further said that the successive industrial policies launched in Jammu and Kashmir provided for “an inbuilt mechanism for revival and rehabilitation of sick industry, which was first approved under Government Order No. 47-IND of 1999 dated 10-02-1999 which was continued with in industrial policies of 2004, 2016 and 2021.”
“The mechanism envisaged for constitution of State Level Revival Committee (SLRC) for analyzing and approving the revival programme of potentially viable sick units and treatment thereof”, it said.
“Apart from this, the current policy also makes the applicability of the guidelines for rehabilitation/revival of MSMEs notified by Ministry of MSMEs vide Notification
No. S.O 1432(E) dated 29-05-2015 along with Framework for Revival and Rehabilitation of MSMEs issued by Reserve Bank of India vide RBI/2015-16/338FIDD.MSME and NFS.BC.No.21/06.02.31/2015-16 dated 17-03-2016 mandatory on concerned departments and banks” claims FCIK.
FCIK also regretted discontinuation of State Level Inter Institutional Committee (SLIIC) which was formed under the guidelines of RBI to deal with the problems of coordination for rehabilitation of sick MSMEs and provided a useful forum for adequate interfacing between Government departments and term lending institutions/banks with participation of industry representatives.
FCIK also expressed its regret over what it called “government backing out from its commitment on setting up of an Asset Reconstruction Company (ARC) in partnership with J&K Bank as declared by the state government in its Budget Speech of 2015-16 with the aim to do asset stripping where need aroused besides formulating a revival package where revival was possible.”
“Government of J&K and the central Government had approved a corpus of Rs.15.00 Crore and 100 Crores respectively for revival and rehabilitation of sick units which didn’t see the light of the day” regretted FCIK.
FCIK has formally taken up the issue with UT’s Chief Secretary and asked him to take notice of non-implementation of government policies and guidelines by his subordinate departments and Banks. The organisation has informed the Chief Secretary that concerned departments and Banks had not conducted the meetings of SLRC/DLRC, SLIIC, meetings under MSME Framework and other guidelines for years, FCIK said.
“Contrary to these initiatives and guidelines, the Banks had initiated unethical and illegal actions against MSMEs forcing them to sell out their industrial units apart from their ancestral property mortgaged to banks for liquidation of loans”, FCIK said, adding such measures could jeopardize governmental efforts in encouraging industrialisation in J&K.
