J&K industry suffers Rs 200 cr loss in last 40 days due to Kashmir unrest

Jammu, Aug 19 (KNN) Jammu MSMEs are concerned over the ongoing unrest in Kashmir since last 40 days which has led to pilling up of stocks in their units and curtailing of production activities. The industry has incurred a financial loss of approximately Rs.200 crores and the turnover losses of approximately Rs. 500 crores due to the unrest.

In this regard, an Urgent meeting of the Members of the Federation of Industries, Jammu was held under the chairmanship of Lalit Mahajan, Chairman, FOIJ, to discuss the difficulties being faced by the Industrial Sector of the region due to ongoing unrest in the Kashmir Valley.

Members present in the meeting raised serious concern about the suspension in the Supply of Industrial Goods to Kashmir valley resulting pilling up of stocks in their units due to which the manufacturing activities of Industrial Sector stands still & they have no option but to curtail the prod action.

“It is pertinent to mention here that the Industrial Sector of Jammu totally depends for the supply of their finished goods to Kashmir Valley and any disturbance in the supply chain adversely affect the working of the Units resulting into huge Financial burden on account of Wages, Bank Interest , Power Bills and other related expenses,” FOIJ said.

As per the information received from the industrial hubs of Jammu, Bari Brahmana, Samba Kathua, Udhampur etc, the industrial units already suffered a financial loss of approximately Rs.200 crores in the last 40 days due to decline in the sale of their products to Kashmir with the turnover losses to approximately Rs.500 Crores. The working capital limits of Industrial Units are blocked due to non-movement of finished goods and non-receipt of payments for the goods already supplied prior to 8th July 2016 which is a cause of worry amongst the Industrialists of the State.

Federation of Industries, Jammu has the state government to wave off the interest on Working Capital for six months by the Banks, Waiving Off of Power Bills by the PDD, Deferment of Term Loan Installments for six months and 25% increase in the Working Capital Limits of the Industrial Units by the Banks for six months enabling the Unit Holders to run their units in the present situation. (KNN Bureau)