SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has issued an impassioned plea for measures to address the financial struggles of businesses in Jammu and Kashmir, citing decades of losses due to persistent law and order disruptions. During a meeting with the 19-member Industry-related Parliamentary Standing Committee, led by veteran parliamentarian Tiruchi Siva, the FCIK called for the formation of a high-level committee to document business losses since 1989 and to explore avenues for compensation.
FCIK President Shahid Kamili and Advisory Committee member Shakeel Qalander presented a grim picture of the region’s entrepreneurial landscape, pointing out that nearly 3,000 days of disruptions over the past three decades have inflicted severe financial losses. Many businesses have been forced to close, and growth in the industrial sector has been stunted. The delegation emphasised that despite enduring significant burdens, including bank interest, idle wages, taxes, and other operational expenses, affected businesses have never received any compensation. They urged the Parliamentary Committee to recommend that the central government approve a mechanism to redress these grievances, which they believe would lay the groundwork for industrial recovery and economic growth in the region.
The FCIK also drew attention to the worsening plight of Micro, Small, and Medium Enterprises (MSMEs) in Jammu and Kashmir. They noted that many MSMEs are struggling to meet financial obligations, a crisis compounded by delayed payments from buyers, including government departments. The organisation called on banks to acknowledge these challenges and to refrain from adopting harsh recovery tactics that further exacerbate the financial woes of entrepreneurs. Despite the Union Ministry of Finance’s clear instructions to banks to adopt a humane approach, the FCIK criticised the Jammu and Kashmir Bank for what it described as aggressive recovery practices in recent years. They alleged that these included harassment and forced dispossession, actions that have not only caused distress among the entrepreneurial community but have also deterred potential investors. However, the FCIK expressed cautious optimism that these practices might improve under the bank’s newly appointed Managing Director and Chief Executive Officer.
To alleviate the growing Non-Performing Asset (NPA) crisis, the organisation proposed several measures, including grant-in-aid support, soft loans, and the introduction of a uniform, non-discriminatory Special One-Time Settlement (OTS) scheme. The FCIK expressed dissatisfaction with the recent OTS scheme introduced by Jammu and Kashmir Bank, which they claimed prioritised the bank’s interests over the needs of struggling businesses. They urged the bank to revise the scheme in consultation with the Jammu and Kashmir government and local stakeholders to ensure meaningful reductions on NPA balances, waivers of unapplied interest, and a simplified repayment process. The revised scheme, according to the FCIK, should be inclusive and tailored to the region’s unique challenges, offering longer repayment terms and lower interest rates.
The organisation also raised broader concerns about the lack of a unified industrial policy and the need for reforms in public procurement to promote local industrial goods. They emphasised the importance of improving credit flow to businesses, introducing business interruption insurance, developing industrial infrastructure, and implementing amnesty schemes to provide relief to struggling enterprises.
The Chairman and members of the Parliamentary Committee responded positively to the issues raised by the FCIK. Chairman Tiruchi Siva immediately instructed Chief Secretary Atal Dulloo to address the concerns falling within the jurisdiction of the Jammu and Kashmir government. He also urged the Managing Director and Chief Executive Officer of Jammu and Kashmir Bank to revisit the OTS scheme to make it more inclusive and responsive to the needs of local stakeholders. The Committee assured the FCIK that it would take up the larger issues with the central government, promising to advocate for policies and measures aimed at providing much-needed relief to the entrepreneurial community.
