Srinagar: Confederation of Indian Industry (CII) has urged the Administration of JK UT and the Union government to announce a bailout package along with a host of other incentives for small, medium enterprises and other industries in J&K.
In a statement issued here, CII said: “J&Ks economy has been stressed to extreme ends since last one year, as we were witnessing new wave of developmental initiatives in last few months and we could have witnessed its positive results in present times but sudden outbreak of COVID 19 has further weakened the already stressed economy of J&K.”
“In times when India’s economy is expected to slow significantly in the current financial year due to the negative impact of the pandemic on manufacturing and service industries, we expect further stress in J&K,” reads the statement.
“Farooq Amin, Chairman CII J&K suggested that in order to stage a recovery in economic activity, the UT administration and Government of India must take some short term and long term measures for helping the Trade and Industry of J&K,” it said.
“Administration of UT of J&K should waive off a) fixed electricity charges, b) SGST leviable on GST bills for these months, c) ensure clearance of government payments towards contractors, suppliers, MSMEs and other traders at the earliest. Government of India should consider Income tax rebate for the Trade and Industry of J&K for these months, consider substantial rebate on interest on term loans and working capital loans for a period of one year,” the statement quoted Farooq Amin as saying.
“Apart from these measures Government of India should come out with a special onetime package for the trade and Industry in J&K for ensuring their survival which could be additional reconstruction term loans to medium and small enterprises, wherein it must offer a guarantee of up to 20% of the default. Such a step would help businesses and workers tide over the challenging situation. For employees of private sector, one time permission to withdraw money from EPF should be allowed as emergency measure. Special transport could be arranged from clusters from where large numbers of migrant workers come to work, with all the safety protocols in place,” he said.
“Some of the Key sector of GDP of J&Ks industrial scenario have been badly hit like Agriculture/Horticulture, Tourism, Handicrafts, MSMEs and other industries which require a substantial sector specific fiscal support measures and some of the supportive measures should be immediately provided in order to help them sustain and tide over the existential crises currently they are facing,” he added.
Ravinsh Gulati, Vice Chairman CII J&K said that they have full faith that Administration of UT of J&K and Government of India will accede to its demands at the earliest and will soon provide relief to the trade and industrial fraternity of J&K.
