Seeks power and government-dues amnesties, SBI OTS-20 model from J&K Bank
Srinagar: The Federation of Chambers of Industries Kashmir (FCIK) has urged the Jammu & Kashmir Government to expedite the rollout of a new Industrial Policy alongside a comprehensive revival package for stressed industrial units, including power and government-dues amnesties and a special One-Time Settlement (OTS) scheme for legacy bank debt.
In a statement, the Federation said the early implementation of the policy could support the revival of existing industries while promoting fresh investment, stressing that the needs of established enterprises and new investors should be addressed simultaneously.
Calls for power and government-dues amnesties
FCIK said a sizeable section of the existing micro, small and medium enterprises (MSME) sector continues to face financial stress accumulated over years of disruptions, natural calamities, prolonged shutdowns and other circumstances that, according to the Federation, were largely beyond the control of individual entrepreneurs.
Welcoming the government’s ongoing consultations on the new Industrial Policy, FCIK said its effectiveness would depend on addressing the challenges faced by existing industries and stressed enterprises alongside facilitating new investment.
The Federation urged the government to consider announcing a Power Amnesty either alongside the new policy or ahead of its formal notification.
Under the proposed measure, accumulated interest, surcharges and other penal charges on power dues would be waived, while genuine electricity consumption dues could be recovered through reasonable instalments.
FCIK also sought relief from accumulated demand charges for stressed industrial units, particularly for periods when businesses remained closed or operated at significantly reduced capacity due to circumstances beyond their control.
The Federation called for similar amnesty measures covering interest, surcharges, penalties and late-payment charges on dues payable to government departments, industrial development corporations and other government-controlled agencies.
It argued that recovery of legitimate principal dues, alongside the removal of historical penal burdens, would better support the revival of enterprises.
FCIK seeks SBI OTS-20 model from J&K Bank
FCIK said industrial revival would remain incomplete without addressing legacy bank debt.
The Federation recalled that it and other major chambers had already requested J&K Bank to introduce a special One-Time Settlement scheme broadly modelled on the State Bank of India’s OTS-20, while retaining what it described as the scheme’s essential relief principles and scope.
According to FCIK, such a settlement mechanism could provide eligible stressed borrowers with a transparent and uniform opportunity to settle old liabilities and close long-pending accounts.
The Federation said an OTS should not be viewed solely as a bank recovery mechanism, arguing that a properly structured settlement could help potentially viable enterprises resolve legacy debt, restore banking relationships, access fresh working capital and resume operations.
FCIK urged J&K Bank to align any proposed special OTS with the government’s industrial revival initiative, stating that policy support for enterprises would have limited impact if their outstanding financial stress remained unresolved.
Calls for coordinated industrial revival measures
FCIK proposed bringing several measures together under a coordinated industrial revival initiative, including:
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Early rollout of a progressive Industrial Policy.
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Power and government-dues amnesties.
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Resolution of legacy bank debt through a fair OTS mechanism.
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Fresh finance for viable industrial units.
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Strengthening of the Ease of Doing Business framework.