Govt liability of Rs650-cr affects SSI units

Strap: Abrogation of Article 370 hits manufacturing sector

Advertisement

Sumit Hakhoo

Tribune News Service

Jammu, November 18

Small-scale industries (SSI) in Jammu and Kashmir are facing financial crisis as post revocation of Article 370, the government departments have failed to clear a liability of Rs650 crore, which is affecting the manufacturing sector.

For years, the SSI units have been supplying equipment and components to the Power Development Department (PDD), Public Health Engineering (PHE) Department and Small Scale Industries Development Corporation Limited (SICOP) under different Central and state schemes.

According to the claim of the Bari Brahmana Industries Association (BBIA), one of the biggest buyers — the PDD owes over Rs200 crore and SICOP has not released a payment estimated to be around Rs450 crore.

However, none of the officials from the government department concerned or a senior official from the administration of UT was available for a comment.

“Payments are pending for the last six to nine months. The Finance Department had issued directions to all government departments to clear the outstanding amount of materials received prior to J&K becoming a UT, but in vain,” said Rajiv Mahajan, president, BBIA.

Communication blackout after the scrapping of Articles 370 and 35 A by the Parliament on August 5 and attack on truckers by terrorists in the Valley had created an uncertain situation for the business sector. It is estimated that a payment of over Rs500 crore is stuck in the Valley, affecting the intra-state trade.

“The issue has been brought to the notice of government with repeated requests for release of payment but nothing has been done so far. We fear accounts of the unit holders will be converted into NPA by the banks. It would leave the unit holders with no option except to shut down their units, resulting in mass-scale retrenchment of industrial workers, mostly sons of the soil”, said Tarun Singla, a prominent industrialist.

Continued shutdown of Internet in J&K is affecting the industries badly, as online businesses (e-commerce) to banking transactions have been hit.