Srinagar, Sep 16: Kashmir Chamber of Commerce and Industries (KCC&I) President, Sheikh Ashiq Ahmad and General Secretary, Farooq Amin Thursday called on Union Minister of State, for Industries and Commerce (I&C), Som Parkash, at SKICC, Srinagar and presented a memorandum listing issues and recommendations the business community.
As part of the centre’s outreach programme, the minister was apprised of the slump in economic activities due to continuous disruptions over past few years and their adverse impact on local business establishments.
“The overall losses incurred over the years have resulted in an unprecedented level of stress on the working capital and finances of the local business establishments. Though there have been several interventions by the Government for extending support but the continuous cycle of disruptions has failed their objectives,” the memorandum read.
The nineteen point memorandum presented to the minister details various issues and suggestions. KCCI demanded full loan waiver for small borrowers like artisans, weavers, farmers, transporters including auto-rickshaws and taxi cabs, shikara-wallahs, Travel Agents/ Tour operators, ATV & Ski Scooter Operators, Small Shop-Keepers, pony wallahs etc. up to two lacs.
Similarly KCCI also suggested that for accounts under stress but standard, a 30 % Capital infusion coupled with re- structuring of the accounts needs to be done with repayment schedule of 07-10 years. “For accounts which are NPA post 2014 and need revival package, it is suggested that deep restructuring which converts their principal liability into a term loan with waiver in the unapplied interest similar capital infusion upto 20%. A fairly extended repayment schedule of about 07-10 years is made applicable to them,” the memorandum read.
As exporters are facing a lot of challenges and difficulties, KCCI said that Kashmir is at the far end of India without logistic support as it has no dry port. As a result export goods reach Delhi with higher fare rates resulting in losing the competition at international level.
Keeping these geographical limitations in consideration, freight subsidies for both air and road should be given to exporters from Jammu & Kashmir as they can't compete with others who are close to ports.
The memorandum suggested that the State and Centre Government must come up with attractive schemes so that our entrepreneurs who are educated and unemployed youth will attract towards this Export Industry.