J&K's MSME Payment Crisis Is Institutional Betrayal
They delivered the work, the government certified it, and the ribbon was cut. Then came the bank notice not for failure, but for non-payment. Across Jammu and Kashmir, MSMEs sit on dues running into months, often years, with many claims predating 2019. This is no longer a delay; it is a default. The state that commissioned, supervised, and accepted the work has chosen not to pay for it, transferring the cost to the system's smallest players. The Chief Minister’s claim of ₹18,382.26 crore cleared in 2025–26 is presented as closure, but it raises a sharper question: who actually got paid? Of the released contractor payments, how much reached local MSMEs, and how much went to external, GeM-linked firms operating with advance protection? The public deserves a breakdown. The law mandates payment within 45 days, yet the MSME Facilitation Council's orders are ignored without consequence. Banks are invoking SARFAESI against enterprises whose only 'default' was trusting a government contract. This is not a procedural lapse; it is a system that protects departments while punishing suppliers. If the 'ease of doing business' is real, why are local enterprises collapsing under state dues? If reform is genuine, why is transparency missing? Disclose the payment data, enforce council orders, penalise defaulting departments, and ring-fence MSME payments. Until then, every investment claim stands on a foundation of unpaid bills.
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