Precious Kashmir News
Srinagar, Oct 13: In order to provide assistance to business entities, the LG administration had recently announced a number of measures to provide growth momentum in various sectors of the economy.
A comprehensive package of Rs 1350 crore was announced by the J&K LG, Manoj Sinha in the previous month responding to the demands put forth by the UT business community.
In a review meeting taken by the LG, the Finance department informed about the progress on various financial components of the package.
The 5% interest subvention in favour of the business establishments was the main incentive extended by the LG administration. The Finance department informed that government order has already been issued on 1st October, 2020 and the necessary modalities are being worked out by J&K Bank.
The department has further informed that the list of borrowers has also been received and interest subvention is being released within a week’s time in favour of eligible investors pending since years 2014 and 2016.
A plethora of administrative measures were also announced simultaneously as part of this package. Regarding them it was elucidated that the first meeting with some two dozen borrowers was held on 9th of this month to restructure the functional NPAs and standard accounts in a time bound manner.
Different Statutory Orders (SO) are also shortly being issued by the department to extend to 31st December, 2020 the date of GST reimbursement claims up to the period of 31/03/2019.It further says that no demand has been received for the equity infusion by the financial institutions.
Regarding the streamlining the powers to sanction loans it was intimated that J&K Bank has duly streamlined the loan sanctioning process. Moreover it says that loan repayment schedule has been extended as per RBI guidelines and FITL guidelines for conversion of interest stands issued by the bank vide circular dated 25.08.2020 with moratorium process to be decided.
Revealing the achievement made by banks under GECL and Business Support Loan in UT of Jammu and Kashmir it was said that under GECL against 63621 accounts for Rs 1756.41 crore an amount of Rs 1622.21 crore has been disbursed against 58437 borrowers.
Regarding Business Support Loan it was said that against 2128 loans of Rs 118.76 crore Rs 47.90 crore against 1317 borrowers already stands disbursed. This quantifies to 92% of the borrowers receiving 92% of the sanctioned amount under GECL and 62% approved under business loan, 40% amount stands disbursed.
Satisfactory progress on implementation of business revival package: Govt
