The Biz Reporter
Srinagar, Apr 9: The Kashmir Chamber of Commerce & Industry (KCCI) has expressed sincere thanks to the Lieutenant Governor of Jammu & Kashmir, Shri Manoj Sinha Ji, and his administration for constituting a committee to address the Non-Performing Asset (NPA) issues faced by borrowers.
In a letter to the Lieutenant Governor, the KCCI stated that this matter was raised in various meetings held over the past year, and the LG had assured that the suggestions put forward by KCCI would be seriously considered. The Government of Jammu & Kashmir has now issued an order (No: 940-JK(GAD) of 2024 dated 08-04-2024) to constitute a committee comprising the Principal Secretary to Government Finance Department, Commissioner/Secretary to Government Industries & Commerce Department, and the Executive Director of J&K Bank.
The committee has been mandated to address the One-Time Settlement (OTS) cases faced by Micro, Small, and Medium Enterprises (MSMEs). The KCCI has expressed gratitude to the Lieutenant Governor for constituting this high-level committee, which it believes will prove beneficial for both banks and borrowers.
“The Government’s decision is a path-breaking one and will help banks recover their money and borrowers straighten their accounts,” the KCCI said in the letter. The organization also suggested that the new OTS scheme be made applicable to all categories of borrowers, so that the NPA cases lingering for a decade or more can find a practical closure.
The KCCI has offered to act as a bridge between lending institutions and borrowers and has advised borrowers to make necessary arrangements for availing the OTS scheme in anticipation of its announcement.
The KCCI is confident that the new scheme will take care of the duration without putting a bar on the eligibility and the upper cap, thereby contributing to the overall economic growth of Jammu & Kashmir.
