SRINAGAR: In a significant move aimed at tackling Non-Performing Assets (NPA) issues faced by borrowers, the Government of Jammu and Kashmir has constituted a high-level committee, receiving praise from the Kashmir Chamber of Commerce & Industry (KCCI). The KCCI sincerely thanked the Lt Governor, Manoj Sinha, and his administration for heeding their longstanding request.

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Kashmir Chamber of Commerce and Industry elected its new leadership on February 22, 2023.

The decision to form the committee, as per Order No: 940-JK(GAD) of 2024 dated 08-04-2024, follows persistent advocacy by the KCCI, which raised the matter in various meetings over the past year, the Chamber said in a statement. The committee, comprising the Principal Secretary to the Government Finance Department, Commissioner/Secretary to the Government Industries and Commerce Department, and the Executive Director of JK Bank, has been tasked with addressing ONE-TIME Settlement (OTS) cases faced by Micro, Small, and Medium Enterprises (MSMEs).

In response to this development, the KCCI penned a letter to the LG expressing gratitude for his proactive approach. The chamber believes that the committee’s formation will benefit both banks and borrowers, providing a crucial pathway to resolving long-standing NPA issues. The proposed OTS scheme, arising from the committee’s recommendations, is expected to stimulate investments and bolster economic growth in the region.

Moreover, the KCCI has offered to facilitate communication between lending institutions and borrowers, emphasising the need for inclusivity in the OTS scheme. The chamber advocates for the scheme’s applicability across all categories of borrowers, irrespective of the duration of their NPA cases, thereby ensuring a practical resolution for cases lingering for years.

Highlighting their proactive engagement, the KCCI disclosed their efforts in advocating for this cause during a meeting with the Parliamentary Standing Committee on Industry in Srinagar. They underscored the importance of swift action in implementing the OTS scheme to provide relief to borrowers burdened by NPA issues.

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