Trade, Industry Positively Reacts To Rs 1350 Cr Interest Subvention

SRINAGAR: The governor’s announcement of the 1350 crore package that the central government has agreed to, has been welcomed by the people in business sector. Different associations have reacted positively to the announcement.

Earlier, on Saturday Lt Governor Manoj Sinha announced an Rs1350 crore economic package to help the people involved in diverse economic activities. In a press conference, Sinha said that the businesses impacted by the situation and later in floods in 2014 and 2016 were promised the interest subvention but were not given. Under the just accepted package, this will be taken care of. Till March 2021, the administration has exempted the bank borrowers from paying stamp duty in case they make any land transfer. There will be five per cent interest subvention to all borrowers from the business for the six months of 2020.

Maajid Aslam Wafai President JKPICCA welcomes the financial package. A statement issued by JKPICCA reads, “We welcome today’s announcement of financial revival package announced by the  LG Manoj Sinha. We also thank our apex organisation the Kashmir Chamber of Commerce and Industries headed by Sheikh Ashiq for its hard work and convincing the Govt of Jammu and Kashmir that a stimulus package is required for the revival of the local economy.”

Maajid A Wafai, President JKPICCA

“Though we had asked for interest subvention/waiving of 100 % fixed demand charges of electricity from August 5, 2019, till the period of lockdown but the pace at which the committee were formed, reports submitted and package announced is remarkable. At lease the package has made the intention of govt very clear, that the incumbent administration is serious about overall revival/development of the state,” he said.

“This package has been intelligently designed wherein not only it will ensure some sort of liquidity in the system but also will automatically re capitalise our local financial institutions by way of 5% interest waiver in standard accounts, waiver of 50% fixed electric demand charger, waiver of water charges and release of pending interest subvention under 2014 and 2016 rehabilitation schemes for restructured accounts. And for the first time all the demand have been divided into financial/banking intervention, Administrative decision, GST & other taxes and finally demands pertaining to policy decisions. And we are hopeful that for all these accepted demands the govt will soon announce its decisions,” he added.

“We have always in past thanked the govt for the support they have been extended to our industry and it is because of this support that our industry has shown a phenomenal growth in last one decade,” said Wafai in a statement.

FICK has also welcomed the package. “We welcome this package though our needs and therefore expectations are much more and high.   We expect that the Govt will address this for the last one year whereas they have considered it only for 6 months,” said Shahid Kamli, President FICK.

Shahid Kamli President President FCIK

Pinning positive hopes in government, Kamli said that the government has financial constraints. The LG  has said that it is not the end but start of the revival. That’s highly appreciated.


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