Jammu, May 20 (KNN) Micro, Small and Medium Enterprises (MSME) in Jammu and Kashmir (J&K) have demanded financial relief during COVID-19 pandemic. 

In this regard, Federation of Industries Jammu (FOIJ) drew the kind attention of Manoj Sinha, Lt. Governor of J&K towards the acute financial crisis being faced by the industrial units here.

Lalit Mahajan, Chairman FOIJ said that the MSME sector as well as large scale units in J&K facing acute financial crunch due to the current situation of COVID-19 in the state resulting in sharp decline in production and sale of their products.

He also apprised the Lt. Governor that the 90 per cent sale of the industrial units depends on the market of J&K but due to stoppage of supplies the stocks are piling up in their unit resulting blockage of working capital.

''It is pertinent to mention here that the industrial units are working in our state at breakeven point in the current situation to avoid the migration of industrial workers by providing all sort of facilities to them,'' he added.

The following relief sought by them are:  5 per cent interest subvention up to 31-3-2022 for working capital as well as term loan, Deferment of term loan instalments by the banks up to 31-3-2024, Reduction of working capital margin from 25 per cent which is at present to 10 per cent till 31-3-2022, Waive off fixed demand charges by power development department up to 31-3-2022 and Extension of Power Amnesty Scheme up to 31-3-2022.

The industry also sought release of funds to state tax department for the reimbursement of industrial units claims pending with the department amounting to Approximately Rs 100 crores upto 31-3-2021 in respect of SGST/CGST and 2 per cent budgetary support.

It also demanded release of funds for the supply of goods by industrial units to government departments.