Business revival package: Govt reviews various financial, administrative reforms
SRINAGAR: 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 J&K LG, Manoj Sinha, 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.
As far as Loans for business support to fresh borrowers is concerned loans have been sanctioned to 6998 fresher borrowers as on 12th October, 2020 and an amount of Rs 53.21 crore disbursed to 3516 youth. Moreover an ambitious target has been set to cover 15000 fresh borrowers. Guidelines in respect of Business Support Loan (formerly covid-19 working capital demand loan scheme) and Business Support Loan scheme for Hotels & Guest Houses have also been issued, claims the ATR.
The facility of Special desk for youth by JK Bank has already started and inaugurated on Oct, 01 2020. Bank has mobilized 1666 loan cases/applications involving an amount of Rs.46 crore approx.
Regarding other matters it was given that the guidelines, circulars and instructions already stands issued by the department and the implementation of these measures are apace as per the comprehensive business revival plan announced on the recommendations of the high level committee framed by the government.