AoI seeks urgent relief for industrial sector of J&K

Excelsior Correspondent

JAMMU, May 26: The Micro and Small Industrial Sector of Jammu & Kashmir is facing a severe financial crisis due to the prolonged non-disbursal of committed Government incentives.
Industrial units across the region are reeling under financial strain as pending claims under various Government schemes remain unsettled, despite repeated assurances.
The existing Micro/Small industrial Sector of J&K is starving of the funds due to neglect attitude of the Government towards them. In the present scenario after standoff between India and Pakistan, industrialists are facing significant challenges in sustaining their units due to migration of labour, lack of transportation. Despite having pending claims with the Govt they are forced to seek extra financial assistance from the financial institutions and private financers to keep their units operational. This not only adds to their financial burden but also hampers their ability to invest in growth and development.
In a meeting held under the chairmanship of its president Virendra Jain attended by all the office bearers of AoI alongwith a large number of present members urged the Govt to expedite the settlement of pending claims and provide necessary support to alleviate the financial stress faced by industrial unit holders enabling them to focus in production and growth.
The industry has expressed serious concern over the delay in releasing funds under the Turnover Incentive Scheme, SGST reimbursement, and the 3% interest subsidy announced by the Govt as part of the J&K Special Central Package-II of 2012. While partial disbursement of turnover incentive for the fiscal year 2021–22 i.e. 11.1% approximately of the claim of first year has been made, claims for the remaining periods of 2021–22, 2022–23, and 2023–24 remain pending, leading to operational disruptions and liquidity crunches.
Virendra Jain also made aware the Govt that the unit holders have supplied material to the various Govt departments/agencies against which the payments are pending for a long period adding woes to Micro/Small industrial sector of J&K. The treasuries have also kept the payments made by the department withheld for the reasons best known to them only.
Industrial representatives highlight that many units have duly filed GST returns and claims, but due to technical limitations and rigid implementation timelines, their claims have been unjustly rejected. This has especially impacted units relying on the SGST portion reimbursement, which has been withheld on procedural grounds.
Jain has urged the Government to expedite the disbursement of pending incentive claims, amend S.O. 70, 71 & 72 to allow consideration for delayed claims where all returns and taxes have been duly filed; ensure timely quarterly reimbursement of SGST to support working capital needs.

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