Jammu MSMEs have huge amount of money stuck with various govt depts; say they are on verge of closure due to cash crunch
Jammu, Nov 18 (KNN) The micro, small and medium enterprises (MSMEs) in the Bari Brahmana area of Jammu have expressed concerns over delayed payment by the government departments in the state.
In this context, the Bari Brahmana Industries Association (BBIA) held a meeting of its members to discuss the acute financial crisis being faced by the local MSE units due to non-release of payment amounting to crores of rupees by the various government departments which procured materials from them on the basis of valid purchase orders.
“Bills amounting to Rs 200 crores for the material supplied by SSI Units to power development department under the central/state government scheme and Rs 72 crores for the material supplied through SICOP is pending since last six to nine months resulting into acute financial crisis being faced by the unit holders as their bank limits stands exhausted,'' said BBIA.
The matter has been brought into the knowledge of Principal Secretary of the Power Development Department with the repeated requests for the release of payment but nothing has been done which shows the negative attitude of the Power Development Department towards the Small Scale Sector of the State,” BBIA added.
SICOP failed to release the payment of material supplied by SSI units to various government department due to non-release of payment amounting to approximately Rs 450 crores by various government departments. The finance department issued necessary directions to all the government departments to clear their outstanding of the material received prior to 31-10-2019.
BBIA Chairman Lalit Mahajan said the SSI units are on the verge of closer due to non-release of payments in time resulting into huge financial losses to SSI Units due to accumulated Bank interest on the money borrowed from the banks.
“We fear that the accounts of the unit holders may be converted into NPA by the banks resulting unit holders have no option but to close down their units in near future which may be resulting in to the mass scale retrenchment of industrial workers,” he said.
BBIA has appealed the Governor of Jammu and Kashmir Girish Chandra Murmu to intervene into the matter and issue necessary orders for the immediate release of funds. (KNN Bureau)