Srinagar: Jammu and Kashmir has rolled out a comprehensive incentive scheme to revive the sick industrial units in the union territory.
Under the new plan, the administration will grant 30 percent margin money of the total soft loan to revive sick units.
The margin money shall be released once the soft loan is approved by the Jammu and Kashmir Bank Ltd on the basis of recommendation by Industries & Commerce Department.
“The amount of margin money shall be placed directly at the disposal of Jammu and Kashmir Bank Ltd, instead of SIDCO for transfer to the loan account of the beneficiary industrial unit,” an official document said.
Officials said the 30 percent margin money will bring a huge relief to the industrialists.
“The unit holder can rebuild the basic infrastructure and strategize the entire future planning of running their business. The government has more such plans to provide financial assistance to the existing units apart from establishing new industrial estates and parks in the union territory,” said an official.
Scores of the units have turned sick due to the precarious situation in Jammu and Kashmir. Sources said that a lot of accounts have turned NPA.In 2014, 457 industrial units were sick in the erstwhile state, which has climbed to over 2000 units in 2021.The business community in Kashmir has claimed that 85% of the industrial units may face closure by March next year if the government doesn’t intervene.
Federation Chamber of Commerce and Industries (FCIK) has demanded that the government should include existing units in the Prime Minister’s package.President FCIK Shahid Kamili said 85 percent of the industries are either sick or semi-sick.
“We incurred huge losses due to the uncertainty. Now we are hopeful that the soft loans will help us to revive business to some extent,” he said.