Srinagar: The Federation of Chambers of Industries Kashmir (FCIK) has hailed the government decision about constitution a high level committee for the settlement of NPA accounts of MSMEs with J&K Bank under fresh OTS.
In a statement to Ziraat Times, FCIK has expressed gratitude to the government for acceding to its demand for intervention in the dispute aroused between MSMEs and J&K Bank with regard to NPAs and launch of a uniform and non-discriminatory One Time Settlement Scheme with utmost possible concessions and guidelines.
“It is a matter of great relief that finally the government after acknowledging the growing confrontation between MSMEs and J&K Bank has stepped in for amicable settlement of bad loans of local MSMEs who have defaulted for slew of reasons and circumstances beyond their control” said Shahid Kamili, adding that the government intervention was likely to relieve MSMEs from continued stress on one side and also facilitate recovery of bad loans by the bank on the other.
FCIK has however demanded for co-opting the representatives from apex industrial organisations in the committee to present the viewpoint of MSMEs and analyze besides resolving the practical difficulties of enterprises in liquidating their debt.
“FCIK has time and again represented with the government that the OTS scheme launched by J&K bank should be part of a larger rehabilitation programme of the government to revive sick industrial units in the UT” said Kamili , adding that the government and stakeholders together needed to explore several methods of resource generation for the enterprises enabling them to pay off their debt to J&K Bank under any OTS scheme.
“Linking of the OTS policy with Revival and Rehabilitation of Sick Industrial Units under Government Order: 47-IND was crucial for debt liquidation besides exploring possibility for creation of a Special Asset Reconstruction Company and other options.” Said Kamili
FCIK said that assets worth hundreds of crores had been locked up in the sick industrial units which upon unlocking had the potential of generating employment for thousands of employees besides putting the infrastructure to optimal use.
FCIK has thanked the incumbent Chief Secretary with whom the organisation had in recent past conducted a marathon meeting request him about constitution of a tripartite committee comprising representatives from the Government, Bank and industry. FCIK hoped that with the constitution of committee, the drive by J&K Bank against MSME would be put on hold till the outcome of the committee.
FCIK has reiterated that all local MSMEs were eager to pay back every penny of their debt to the bank under a liberal OTS policy which was hoped to come up after the much needed government intervention.
