Crescent Kashmir

Over 3,000 MSMEs in J-K stare at closure, unable to pay wages

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Micro Small & Medium Enterprises (MSME) unit holders are on verge of bankruptcy and face closure amidst continued shutdown from March 22 to contain coronavirus pandemic in Jammu and Kashmir.

There are about 3,000 MSME and other units in Jammu, Kathua, Samba and Udhampur industrial areas giving direct and indirect employment to thousands of people in Jammu region.

Unit holders also unable to pay wages to their workers as entire supply chain network has broken creating liquidity crisis despite calls by Prime Minister Narendra Modi that workers should not be denied wages.

Although the government permission has been granted to nearly 250 industrial units in Jammu and Kashmir involved in manufacturing of essential commodities to maintain supply chain, but industrialists allege non-cooperation from district administrations in the issuance of passes and implementation of the order of DIC Jammu to resume operations of units.

“Things are getting worse for the unit holders. We had already suffered loss since August 5, 2019 due to communication gag, now this pandemic has hit us hard. There should be some clarity from government’s side,” said Lalit Mahajan, chairman, Bari Brahmana Industries Association (BBIA).

While big manufacturing units especially dealing with Pharma sector have begun installing disinfectant tunnels, small manufactures say they will not be able to bear the cost.

“Even those getting permission are facing lot of difficulties to maintain production. Restrictions on inter-district movement of workers need should be streamlined by authorities. We will fully cooperate with them,” said Tarun Singla, a prominent industrialist in Jammu.

When contacted Director, Industries and Commerce Jammu, Anoo Malhotra said problems have arose but those will be cleared by end of this week.

“Issues of permission and inter district movement of workers has been brought to our notice. It has been taken up with respective district authorities. There are some difficulties,” said Malhotra.

It is pertinent to mention here that government has allowed operation of Rice and Flour Mills; Pharmaceuticals & Healthcare units; Packaged Drinking Water units, Agrochemical units, spice manufacturing/grinding units and milk/Ghee processing units to operate.

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