Srinagar December 12:(KNS) The 48th Empowered Committee Meeting to Monitor Flow of Credit to Micro, Small and Medium Enterprises (MSME) in J&K was held yesterday on 12.12.2020. The meeting was attended by Federation Chamber of Industries Kashmir (FCIK) Secretary General “Ovees Qadir Jamie” and he has suggested various financial Measures to be adopted for free flow of Credit to MSME.

The total credit to Micro and Small Enterprises (MSE) as on September 30, 2020 stood at ?16,446.26 crore (4,24,975 accounts) as compared to ?15,496.70 crore (3,91,851 accounts) accounts as on June 30, 2020, a credit growth of 6.13% (account growth of 8.45%) on a Q-o-Q basis. The Q-o-Q growth in credit to Micro units was 5.61% and that to Small units was 7.26% as on September 30, 2020. HDFC Bank reported a decline in Q-o-Q credit to MSE sector by 9.71%. FCIK has taken strong resentment that the various Private sector banks are not providing credit to J&K MSME but are having sufficient deposits form the UT.

The FCIK has suggested that for Revival and Rehabilitation of Micro, Small and Medium Enterprises (MSMEs) and potential viable sick units shall be identified. The banks for the quarter ended September 30, 2020 has identified 264 sick units in the region with a total outstanding of ?49.39 crore out of which 93 units (?15.10 crore outstanding) were identified as potentially viable, 124 units (?31.76 crore outstanding) were identified as non-viable and viability of 47 units (?2.52 crore) was yet to be decided. FCIK has suggested that there are so many units which needs rehabilitation but identifying 264 units will not suffice the purpose, banks needs to do Due diligence. Further, FCIK has suggested that OTS Schemes shall be provided to the MSME Sector and the scheme shall not be provided in a way to exploit the MSMSE’s as recently the SARFAESI Act amendment to cease the property of defaulters have shacked the Business Community. Further, the banks must take into consideration last few years has been turbulent conditions in the Kashmir Valley.

FCIK has demanded that there is not flow of credit under CGTMSE scheme. The banks are asking for collateral rather than offering CGTMSE to Customers and awareness campaign must be started for CGTMSE. The cumulative disbursement under the scheme as on September 30, 2020 was ?2,399.67 crores (1,04,254 accounts.(KNS)