JAMMU: Chief Secretary, Atal Dulloo, today chaired a meeting at the Civil Secretariat here to review the implementation and expansion of the Trade Receivables Discounting System (TReDS) in the Union Territory of Jammu & Kashmir.
The meeting was attended by Additional Chief Secretary, Finance Department; Managing Director, J&K Bank; Commissioner Secretary, Industries & Commerce; Secretary, Industries Department; Director Industries, Jammu; Chief General Manager, J&K Bank; Deputy General Manager, RBI, Jammu; representatives from Receivables Exchange of India Limited (RXIL – TReDS platform); and senior officers from various government departments.
Emphasizing the transformative potential of TReDS, the Chief Secretary highlighted its critical role in improving cash flow for Micro, Small and Medium Enterprises (MSMEs) by facilitating timely realization of payments through invoice discounting. He stressed the need to fully leverage this digital platform to enhance credit accessibility and strengthen the MSME ecosystem across J&K.
The Chief Secretary called for exploring the possibility of participation from Government Departments, Public Sector Undertakings (PSUs), and large corporate buyers on the TReDS platform, noting that wider adoption would significantly help address the persistent issue of delayed payments to MSMEs and improve their working capital cycle.
Underscoring the need for a coordinated approach, he directed the Industries & Commerce Department to take the lead in onboarding key government entities and departments onto the platform. He also emphasized conducting extensive awareness campaigns among MSMEs to educate them about the benefits and operational aspects of TReDS.
Setting clear targets, the Chief Secretary instructed the department to ensure onboarding of at least 500 MSMEs from each region of the Union Territory within the next few months, to maximize the reach and impact of the platform.
He also appreciated the proactive role played by the Reserve Bank of India and other stakeholders in promoting invoice financing mechanisms for MSMEs in the region, and expressed confidence that sustained efforts in this direction would help in enhancing the financial resilience and growth prospects of the MSME sector in Jammu & Kashmir.