New Delhi, Aug 14 (KNN) Expressing disappointment non release over pending payments of micro, small and medium enterprises (MSMEs) by Power Development Authority (PDD) from last six months, the Federation of Industries Jammu (FOIJ) said that this has exhausted working capital of the units.

The PDD failure to release crores of payments for the supply of material to the chief engineer of the department has made the SSI units vulnerable, FOIJ.

The members of the association claimed that due to delay in release of pending payments the working capital of the units stands exhausted resulting serious financial crunch & accumulation of liability of crores of rupees.

“We fear that the unit holders have no option but to close down their units in near future resulting in retrenchment of hundreds of worker if their outstanding payment is not released immediately," Members added.

FOIJ highlighted that as per the ‘Delayed Payment Act 2006 of Government of India’, it is mandatory for all the government departments to release the payment of SSI sector within 45 days from the date of receipt of material otherwise the department is bound to pay the interest on the delayed payment.

But the concerned officials are not adhering to the guidelines of the act for the reason best known to them, said Lalit Mahajan, president of FOIJ.

He pointed out that in spite of requisite funds allocated to all the departments by the government for the clearance of material purchased by the various government departments from the MSME sector, the officials of PDD did not release the payments of unit holders resulting great inconvenience to the unit holders.

FOIJ has appealed the governor of J&K NN Vohra to intervene in to the matter and give directions to concerned department for immediate release of pending payments of unit holders which will provide great relief to them.