Srinagar, April 30: A delegation of the PHD Chamber of Commerce and Industry (PHDCCI) Kashmir chapter on Wednesday raised a series of concerns affecting the Micro, Small and Medium Enterprises (MSME) sector in Jammu and Kashmir, including credit stress, delayed payments, and gaps in institutional lending, during a high-level meeting with a senior official of the Union government.
The delegation, led by Himayoun Wani, Co-Chair PHDCCI Kashmir, met Praveen Kumar, Additional Development Commissioner at the Office of the Development Commissioner (MSME) under the Ministry of Micro, Small and Medium Enterprises, at the MSME office in Sanatnagar.
The PHDCCI team included Er Pervaiz Kaiser, Bilal Kawoosa, Shabir Abdullah, and Iqbal Fayaz Jan, Deputy Director PHDCCI. The meeting was hosted by A.K. Tamaria, Joint Director, MSME Development Facilitation Office (DFO) J&K Ladakh, and moderated by Saheel Alaqband, Assistant Director MSME DFO Srinagar, and Ashwin Kumar, Assistant Director MSME Technology Centre Srinagar.
Credit Stress, Delayed Payments Highlighted
During the interaction, the delegation flagged a deterioration in the creditworthiness of MSME borrowers following the abrogation of Article 370 of the Indian Constitution, a situation further worsened by the economic disruptions caused by the COVID-19 pandemic.
The representatives also pointed to persistent delays in payments to MSMEs, describing them as a major constraint on working capital and business sustainability. Issues related to onboarding on the Trade Receivables Discounting System (TReDS) platform were also raised, with stakeholders citing procedural bottlenecks and lack of awareness.
Concerns were expressed over inadequate lending under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which is intended to provide collateral-free loans to small businesses. The delegation said limited access to such credit facilities has hampered growth prospects in the region.
Call for Policy Intervention
The PHDCCI delegation called for a comprehensive diagnostic study to assess the underlying causes of financial stress and sickness among MSMEs in Jammu and Kashmir. It also sought preferential procurement policies in favour of locally manufactured goods in turnkey government projects.
In addition, the delegation recommended clearer identification mechanisms on the Government e-Marketplace (GeM) platform to distinguish manufacturers from traders under Udyam registration, ensuring fair participation of genuine producers.
A key demand was the formulation of a Kashmir-specific MSME Relief and Growth Policy to address region-specific challenges. The delegation also stressed the need for a dedicated logistics policy and stronger awareness campaigns to improve utilisation of existing MSME schemes.
Government Assures Action
Responding to the concerns, Praveen Kumar assured the delegation that issues within his jurisdiction would be addressed on priority. He added that policy-related or inter-ministerial matters would be taken up with the relevant departments for necessary action.
The meeting concluded with an understanding that continued engagement between industry bodies and government agencies is essential to strengthen the MSME ecosystem in Jammu & Kashmir, which plays a key role in employment generation and regional economic growth.
