Jammu, Oct 7 (KNN) The micro, small and medium enterprises (MSMEs) in the region have raised concern over non-release of their pending payment of approximately Rs 20 crore since last one year for supply of GI pipes.

In this regard, Bari Brahmana Industries Association (BBIA) held a meeting today to discuss way forward.

BBIA President Lalit Mahajan said, “The meeting is to discuss issue of non-release of pending payment of SSI Units since last one year for the supply of GI Pipes to the Chief Engineer PHE Department Jammu and Kashmir against the valid supply orders.”

MSMEs raised serious concern in respect of pending payments amounting to approximate Rs 20 crores which has blocked their funds and working capital limits.

“Financial crunch is being faced by the unit holders due to the accumulated liability of crores of rupees for the last more than one year,” said BBIA.

Apart from this, BBIA highlighted, the funds amounting to crores of rupees stand blocked in the stocks lying in the units against the Orders in hand issued by the Department for fresh supplies.

“We fear that the unit holders have no option but to close down their units in near future resulting retrenchment of hundreds of worker if their outstanding payments not release immediately,” said Mahajan.

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 resulting in piling of claims amounting to crores of rupees lying pending with the Chairman MSME, Facilitation Council, Jammu,” he said.

The MSME entrepreneurs have urged the State Finance Minister Jenab Haseeb A. Drabu, Minister for I&FC and PHE Department Sham Lal Chowdhary and Industries & Commerce Minister Chander Parkash to intervene in to the matter for immediate release of pending payments of the unit holders. (KNN Bureau)