Industrial sector in Kashmir suffers Rs 23,400 crore losses since August 5

The State Level Banker’s Committee of Jammu and Kashmir Bank has recommended extension in repayment of loans by three months.

Published: 13th September 2019 07:33 AM  |   Last Updated: 13th September 2019 09:28 AM   |  A+A-

A BSF jawan stands guard as J&K Police personnel check vehicles on the Jammu-Srinagar highway in Kathua on Thursday. On the 39th day of the shutdown security forces continued to be deployed to maintain law and order.

A BSF jawan stands guard as J&K Police personnel check vehicles on the Jammu-Srinagar highway in Kathua on Thursday. On the 39th day of the shutdown security forces continued to be deployed to maintain law and order. (Photo | PTI)

Express News Service

SRI NAGAR:  The industrial sector in Kashmir has suffered Rs 23,400 crore losses in 39 days of strike, restrictions and communication blockade since scrapping of Article 370 and bifurcation of Jammu and Kashmir into two union territories by central government on August 5. An official of Industries department, Kashmir told this newspaper that the Valley has 14 industrial estates, where 21,000 manufacturing units have been set up.

The manufacturing units comprise cement plants, food processing units, wood-based units, milk, mineral water, etc. About 7 lakh people are employed and working in different capacities.“About one lakh are regular and permanent staff while six lakh are contractual employees,” the official said. According to the official, all the manufacturing units in Valley have stopped all kind of works since August 5. 

He said these industrial units are “dead” as no work is going there.“Due to closure of the manufacturing units, the Valley’s industrial sector is suffering losses worth Rs 600 crore per day. In 39 days of shutdown, restrictions and communication blockade since August 5, Kashmir’s industrial sector has suffered a total loss of Rs 23,400 crore,” the official said.

The State Level Banker’s Committee of Jammu and Kashmir Bank has recommended extension in repayment of loans by three months to address difficulties faced by borrowers and the banks due to disruption of business since August 5.  The Committee has also recommended relaxation in income recognition and asset clarification norms for favourable consideration of RBI. It also sought applicability of special dispensation to all banks operating in J&K. The recommendations by J&K Bank SLBC are subject to the approval by the Reserve Bank of India.

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