JKBudget2018: Dr Drabu announces ‘CM’s Business Interest Relief Scheme’ for two years

Tasavur Mushtaq

Srinagar

Understanding the plight of industries and businesses, Dr Haseeb A Drabu has earmarked initial provision of Rs 200 to contribute one-third of the total interest payment of all the RBI approved restructured accounts.

Dr Drabu said this while presenting his consecutive fourth budget of BJPDP government.

He said that “one-third of the monthly instalment will be paid by the State Government and two thirds will be paid by the borrowers.”

Dr Haseeb A Drabu presenting his fourth budget in assembly (Image: DIPR)

An economist, Dr Drabu said though substantial relief was given to them from CM’s Relief Fund and also through Prime Minister’s Interest Subvention Scheme, it wasn’t enough to compensate them fully.
He on the occasion announced the roll out of “CM’s Business Interest Relief Scheme.” For two calendar years starting from January 2018- January 2020.

This he said is done to honour the commitment made by chief minister Mehbooba Mufti during her meeting with the trade bodies.

“The Hon’ble Chief Minister decided and announced in her meeting with industry and trade bodies that I should find some fiscal space and extend whatever support is possible to the business fraternity,” he said and added that “I am cutting a big cheque to honour the commitment made by the Hon’ble CM.”

While talking about the stressed loans, he said that this scheme is beneficial to banks also. This scheme will also be beneficial to banks which are facing huge NPA build up. To avail of the scheme, Banks will have to offer a percentage point reduction in their weighted average interest rate on the restructured portfolio.”

Hopeful of a turnaround, he said: “I am sure this will provide a huge relief to the borrowers and provide the necessary impetus to the trade and business activities in the State.”

On the same occasion, Dr Drabu said that it will also be ensured that a culture of reneging on the loan commitments is not inadvertently encouraged. “While Government has gone out of its way and pocket to provide some relief to the industry in view of the exceptional circumstances involved, it will also be ensured that a culture of reneging on the loan commitments is not inadvertently encouraged, leading to accumulation of NPAs in the banking sector.”

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