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Tag: fcik

  • FCIK Congratulates JK Bank For Making All-Time High Profit

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    SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) congratulated JK Bank for making an all-time high net profit of 1197 Crores in the last financial year besides improving significantly upon all other banking parameters.

    In a statement FCIK while attributing the remarkable achievement of the bank to its dedicated and hardworking management and staff, the apex industrial body said that the bank has improved its outlook towards accelerated regrowth of the J&K economy and high-end sustainability.

    FCIK equally attributed the success and achievement of J&K Bank to its loyal depositors from Jammu, Kashmir and Ladakh whose deposits accounted for 88.20% of total deposits of Rs.122038 Crores with 6% growth from the last year. FCIK observed that this deposit profile has played an important role in maintaining the margins of the bank as the cost of these deposits stood at one of the lowest rates amoung the Indian scheduled commercial banks, implying lower than peers’ deposit costs @ 3.67%.

    “Such a gesture depicted and displayed an emotional bonding of the people of UTJKL with the bank since its inception in 1938 which needed to be respected, maintained and enhanced further.

    “The achievement is also attributed to the borrowers of the bank  who have obtained loans from the bank and returned the same with one of the highest interest rates among the Indian scheduled commercial banks” observed FCIK adding that the bank might have been within its right to cover prevalent risk factors while overcharging their borrowers during turbulent times when all other banks had backed out from flowing credit to various economic sectors including MSMEs.

    “Although the improvement upon Credit-Deposit ratio to 67.43% by the bank was fair yet it was much below the national average of 75%” observed FCIK adding that J&K Bank needed to fully concentrate on the increased credit flow to all economic sectors in UTJKL as it was observed that out of total advances of Rs.82285 a significant portion has been advanced to large corporate and other enterprises outside the Union Territory.

    “The recoveries made from the NPA account holders after the launch of OTS-2022, Karz Mukti Scheme etc. have also aided in the increased profit earning of the bank”, observed FCIK adding that the profit could have increased further had the bank authorities conceded to the demand of FCIK and other business chambers for modification of the OTS schemes.

    FCIK said that it was gratifying that the net NPA of J&K Bank stood just at 1.62% to net advances probably one of the lowest in the banking industry and that all borrowers of UTJKL were anxious to repay every penny of their loans borrowed from the bank on launch of a uniform, non-discriminatory OTS with trouble-free provisions and repayment schedule in consultation with the UT government and stakeholders. FCIK hoped that J&K Bank now initiated necessary steps towards launching such a policy which, among other things, could surely enable them to increase the current year’s profits to an all-time high by surpassing the profit figures of the previous year.

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    ( With inputs from : kashmirlife.net )

  • FCIK Demands Govt Intervention To Stop JK Bank’s ‘Smear Campaign’

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    SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has called for immediate intervention by the UT government in resolving issues between J&K Bank and MSMEs, in order to put a stop to the maligning campaign launched by the former against non-performing assets (NPAs) without giving them a reasonable opportunity of being heard.

    The demand was made in a marathon meeting between the FCIK Advisory Committee and Presidents of organized industrial estates, held at FCIK headquarters under the chairmanship of M.D. Qureshi, which was attended by Presidents of industrial estates including Lassipora, Khunmoh, Rangreth, Zainakote, Sanat Nagar, BAMK, Zakura, Anchidora Anantnag, Vessu, Ganderbal, Gagran Shopian, Shalteng, Sopore, Baramullah, Kupwara, besides other members of the Advisory Committee.

    The Presidents of various industrial estates presented a detailed account of continued financial stress currently prevalent in MSMEs owing to a number of reasons which, among other difficulties, has also led to growing NPAs. They said that the unilateral withdrawal of marketing support to MSMEs committed under the industrial policy of 2016-26, coupled with long spells of business interruptions during re-organisation and Covid restrictions, had been the main reason for this financial stress. Further withholding or delaying of payments on account of supply of material and execution of works to government departments and PSUs had contributed to the stressfulness of hundreds of enterprises.

    The meeting regretted that, contrary to acknowledgment of such difficulties, the bank has launched an unwarranted and undesired campaign of maligning and tarnishing the public image of entrepreneurs, adding that such tactics were detrimental not only to the cause of industrial growth and promotion but also to the cordial relations of J&K Bank with local MSMEs.

    The meeting underscored the role of the UT government as mediator between J&K Bank and MSMEs in order to identify an acceptable solution to the issue for the benefit of both parties. The members made it clear that all MSMEs were willing to repay their loans to the bank on the launch of a uniform, non-discriminatory restructuring and OTS schemes with a reasonable timeline. The members reminded that the harsh provisions of SARFAESI Act in the UT required some dilution and relief for the reason that the enterprises here were working under most unconducive and disturbed conditions, unlike their counterparts in the rest of the country. The meeting expected the UT government to step in for the sake of reposing faith and confidence of entrepreneurs on their promoters and use its influence as majority shareholders to shape the desired restructuring/OTS schemes. The government also needed to link these schemes with the rehabilitation of sick industrial units under an existent revival and rehabilitation scheme.

    Earlier, the President of Industrial Growth Centre Lassipora, Haji Muzaffar, presented a detailed account of the recent visit of MD and other top officials of J&K Bank and informed about their willingness to facilitate NPAs with a suitable OTS scheme besides enhancing access to credit for prospective and existing industrial units. Muzaffar said that during the extensive visit to various industrial units, the MD and his team had a complete idea and expressed satisfaction on the working of manufacturing units from grassroots.

    The Advisory Committee, while endorsing the views and suggestions of its constituents, assured the meeting to put in their efforts for holding separate and joint meetings with bank authorities and government to find a lasting solution to all bank issues. The constituents vowed their full support to FCIK Advisory Committee in all its steps and programs which they deem necessary in the process of obtaining relief to the industrial units in distress.

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    ( With inputs from : kashmirlife.net )

  • FCIK Demands Action Against Government Order Violators

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    SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has expressed concern over non-compliance of government orders by various departments regarding the procurement of 25% of their total annual procurement of goods or services from Micro, Small, and Medium Enterprises (MSMEs) and has urged for strict action against violators of orders.

    In a statement issued to the press, the FCIK regretted that a government circular issued under No: FD-Code/240/2022-02-1899 dated 24-02-2023 issued by the Finance Department Codes Division, which makes it mandatory upon all government departments and Public sector undertakings to earmark and procure a minimum of 25% of the total overall annual procurement of goods or services from MSMEs, besides earmarking 3% from within the 25% target for earmarking for micro and small enterprises owned by women, was openly being flouted.

    The FCIK has informed that the violation was mainly being done by the engineering departments under the garb of “providing and fixing” affixed to the nomenclature of any industrial product in their NITs to convert its configuration to a so-called works contract. “In some cases where the engineering departments make it open for both MSMEs and the contractors, the work order is grabbed by the latter for having quoted lesser rates than a manufacturing unit,” said the spokesman of FCIK, surprised that “how was it possible that a contractor who ought to procure industrial goods from a manufacturing unit before their installation could win the very contract from the same manufacturing unit in a tendering competition”.

    The FCIK has drawn attention to the government towards the use of untested, unauthentic, low-quality, and deviation in the use of material in many of these works contracts. “Whereas the power transformers, conductors, and other equipment manufactured by the local industry were subjected to multiple and rigorous testing before delivery, such a process was dormant in most of the works contracts,” said FCIK, adding that this paved the way for the installation of untested and substandard goods. It has also been observed that many contractors were using imported deodar-resembling timber against the specified deodar specie mentioned in the contracts, informed FCIK. “Such imported timber is far less in cost than Deodar, which is sold only by the J&K State Forest Corporation alone,” said FCIK, adding that “departments required to ascertain in the first instance that how could a contractor quote rates below the average sale price of JKSFC if he didn’t intend to deviate from specifications later”. FCIK had recently taken up the matter of the use of Rajasthani Kota stone in place of local devri stone tiles in the “smart city project” which amounted to brazen deviation from the specifications. All such quality issues could be taken care of only when these industrial goods were procured by industrial units, claimed FCIK.

    FCIK has urged upon all Administrative departments to monitor that their subordinate offices adhere to the government instructions regarding earmarking and procurement of 25% of their annual requirements from MSMEs besides segregating industrial goods from works contracts. The Finance department has already established that a meager cost towards the installation of an industrial product could not change its nomenclature to a works contract, informed FCIK.

    FCIK has invited the attention of Principal Secretary PWD and Chief Engineer R&B towards the NIT No: 05 of R&B/Khanabal/2023-24/E-Tendering/1035-44 dated 24-04-2023 issued by Executive Engineer, R&B Division, Khanabal for 16 various works and has sought their intervention in making the concerned to change the eligibility criteria for specified industrial related works to keep it restricted to registered MSMEs only.

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    ( With inputs from : kashmirlife.net )

  • FCIK Upset As Stakeholders Excluded From SICOP/SIDCO Boards

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    SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) expressed its disappointment regarding the recent reconstitution of the Boards of Directors of Jammu and Kashmir Small Scale Industries Development Corporation (SICOP) and J&K State Industrial Development Corporation Ltd. (SIDCO). The reconstitution resulted in the exclusion of industrial stakeholders from the boards. Prior to 2019, it was the norm for the boards to include representatives from industrial stakeholders. However, the reconstituted boards consisted of 10 government officials each.

    FCIK expressed surprise that the government issued the orders on the same day as the Chief Secretary’s call for collaboration and regular interaction between the industry and the government to address the grievances of industries in the Union Territory (UT). FCIK claimed that it was part of the boards of all industrial-related corporations and committees since their inception, and this yielded positive results towards the development of the industrial sector.

    FCIK analyzed the proposed schemes and programs of these corporations objectively and critically while being part of the boards to make them industry-friendly. FCIK expressed concern that the current setup paved the way for unilateral anti-industry decisions without opposition from any stakeholders.

    FCIK observed that most of the decisions taken in the boards without any outside stakeholders resulted in the growth of stress and the debacle of the existing industry. One of the decisions taken was about collecting part premium with every change in the constitution of an industrial unit. FCIK stated that this decision was aimed at filling the coffers of corporations, ignoring the fact that these corporations were primarily for the growth and promotion of the industry.

    FCIK regretted that the industries and commerce department in the UT had changed its vision and strategic planning process. Most of its efforts and time were utilized for alluring prospective enterprises, which led to the neglect of the existing industry. FCIK urged the government for effective engagement to translate stakeholder needs into industrialization goals and create the basis of strategy development of industry under the ambitious Central Sector Scheme of 2021.

    FCIK hoped that the government would issue orders for the reconstitution of all industrial-related boards and committees by including members from genuine stakeholders. FCIK stated that the government should take cue from the central government departments, which work on the feedback and physical involvement of stakeholders.

    FCIK hoped that the stakeholder engagement would help build involvement and confidence to have collaborative partnerships for pooling knowledge, experience, and expertise to co-create solutions for a common vision and future ambition. FCIK added that this would allow impartiality and objectivity to work while reaching a consensus. The National Board for MSMEs had only 18 official members out of 47 members on the board, the rest being from industrial associations.

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    #FCIK #Upset #Stakeholders #Excluded #SICOPSIDCO #Boards

    ( With inputs from : kashmirlife.net )

  • EPFO Penalty Proceedings Against Lawful Procedure: FCIK

    EPFO Penalty Proceedings Against Lawful Procedure: FCIK

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    SRINAGAR: The Federation of Chambers of Kashmir (FCIK) has taken strong exception to the penalty proceedings launched by the Employees Provident Fund Organisation (EFPO) against hundreds of employers in Jammu and Kashmir valley under section 14B of the Provident Fund Act for making belated payments after respective due dates of filling of returns during January 2019 to April 2023 and has termed the action against the procedure established by law.

    In a statement, the FCIK has challenged the prudence of the organisation for having invoked section 14B of the Act which could only be done under concrete evidence regarding any culpable state of mind of the employer while committing default in timely remittances. FCIK stated that the action taken by EPFO had sent shockwaves to employers for the reason that this provision of the Provident Fund Act was extremely harsh and envisaged for recoveries through coercive methodology including attaching bank accounts and properties.

     

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    FCIK regretted that EPFO J&K had completely played ignorant to the prolonged lockdowns during the reorganization of state, Covid restrictions coupled with snapping of internet services which had led to complete halt to business activities in Jammu and Kashmir during aforementioned time period and has asked that how could EPFO expect employers to follow normal rules and regulations under most abnormal conditions when the very movement of people had been restricted.

    FCIK has taken up the matter with Central Provident Fund Commissioner GOI with a plea to quash the demands raised by EPFO against J&K employers. While giving an overview of the operational and economic conditions of enterprises in J&K particularly in Kashmir valley, FCIK has solicited intervention of the CPFC for quashing of demands raised by EPFO J&K against employers for penal damages including interest and administrative charges during the period of January 2019 to April 2023. The waiver of penal damages was also sought in consideration of Central Provident Fund Organisation’s own Circular No C-1/Misc./2020-21/vol.1/1112 dated 15-05-2020 and relevant apex Court directions, reads the statement of FCIK.

     

     

     

     

     

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    ( With inputs from : kashmirlife.net )

  • FCIK Demands For Consolidation Of Existing Industrial Base

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    SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has urged the central government to consolidate the existing industrial base in Jammu and Kashmir and its ambitious expansion plans for industrial development under the “New Central Sector Scheme” (NCSS) launched in 2021 with an outlay of 28400 Crores over a period of time.

    This was conveyed by FCIK representatives to the Director of the Department for Promotion of Industry and Internal Trade (DPIIT), Dr Kajal, and her team of officers in a meeting held at Sanat Ghar Srinagar. The FCIK was led by members of the Advisory Committee, Shakeel Qalander and Mohammad Ashraf Mir, with the participation of presidents of various industrial estates, including Lassipora, Khunmoh, Rangreth, Zainakote, Shalteng, Sanat Nagar, Baghi Ali Mardan Khan, Zakura, Ganderbal, Silk Park Zakura, and other constituents.

    FCIK representatives conveyed that the desired transformation in industrial development could only take place by following the principles of natural growth, which envisages the consolidation of the existing industrial base before spreading out for expansion. While hailing the NCSS for enhanced industrial development, they said that the plan also required a change in the working atmosphere and system to facilitate existing and prospective entrepreneurs with flawless services.

    Recalling the central industrial scheme of 2002 launched by the then Prime Minister, Atal Bihari Vajpayee, the FCIK representatives regretted that the scheme could not bring any substantial change owing to inherent deficiencies. They said that the whole scheme, spread over more than a decade, could only attract investment of about 3000 crores, mostly in two districts of 22 districts of the erstwhile state of J&K. They said that NCSS-2021 may, God forbid, meet the same fate if the problems of existing enterprises were not addressed to boost existing and prospective investor’s confidence. They informed the visiting team that a whole lot of existing units were presently in complete distress and working on meager capacities much below their break-even, apart from a large number of units that had already turned sick.

    FCIK suggested DPIIT to earmark a sum of 10000 Crores out of 28400 Crores under NCSS, which could be utilized for incentivizing existing industrial units on revival and rehabilitation of sick units, diversification, modernization, and expansion programs. This initiative could not only save thousands of crores of investment made in existing infrastructure but could also establish a strong foundation for desired expansion plans, said FCIK members, adding that re-enforcing of existing units had the potential of generating one million jobs in a short run.

    FCIK members expressed their dismay over the non-seriousness of the local administration towards the plight of existing industry and said that the role and functionaries of the industries department required complete reformation and revamp.

    FCIK also complained to DPIIT of withholding a corpus fund of 100 Crores along with some other grants approved in 1999 by the then Prime Minister on the recommendations of Task Force on MSMEs. The FCIK representatives said that J&K badly needed such a corpus with appropriate enhancement.

    The Presidents and other members also registered their complaints regarding the difficulties faced by enterprises in availing incentives under NCSS-2021 and suggested changes in rules and regulations.

    Dr Kajal in her response assured FCIK team to revisit provisions of guidelines for the incentive scheme in order to benefit unit holders. She said that the team was dumbfounded to know about the ground realities about existing industry. She assured to take up the matter with her high ups in the department and in turn with relevant quarters for finding a resolution to the problems brought in her notice. She asked FCIK to furnish a detailed note on all these issues with suggestions thereof. She also assured of having regular and frequent interaction with the stakeholders in future.

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    ( With inputs from : kashmirlife.net )

  • Recognize Plight Of MSMEs To Take Recourse: FCIK To Government

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    SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has called on the government to recognize the dire situation faced by the Micro, Small and Medium Enterprises (MSMEs) in the Kashmir region and to take immediate action to fulfill its commitments to this vital sector. The FCIK, which represents the organized industrial estates of the Kashmir valley, held a meeting with the Advisory Council to address the ongoing crisis in the MSME sector.

    During the meeting, the Presidents of various industrial estates criticized the government’s response to the challenges facing the industrial sector, particularly the MSMEs, in the wake of long spells of forced business interruptions over the past three decades, particularly after 2008, 2009, 2010, 2014, 2016, and 2019-21. They accused the government of being blind and unconcerned about the crises, and warned that it was worrying to believe that the government had no clear and accurate idea of the state of MSMEs in Jammu and Kashmir, particularly in the Kashmir valley, where the failure of the government to intervene has resulted in the closure of a substantial number of units.

    The participants in the meeting also blamed the industries department for exacerbating the crises faced by MSMEs by adopting a dictatorial approach and issuing unilateral orders. They observed that the lack of cohesion between the various wings of the department had affected the working of MSMEs, and criticized the appointment of inexperienced officials. The members regretted that most of the District Industries Centers (DICs) in the valley were manned by temporary arrangements without full-fledged General Managers.

    The FCIK members refuted the claims of industrial growth made by the government, arguing that the government’s data did not reflect the ground realities faced by MSMEs, which have been left to fend for themselves with continued onslaughts by different departments and institutions. They also criticized the government’s unilateral changes to industrial policies without consulting stakeholders, citing the example of the land allotment policy.

    The members also lambasted J&K Bank for harassing MSME defaulters and tarnishing the image and credibility of entrepreneurs, particularly in light of the challenges faced by MSMEs during the 2500 days of business interruptions. The bank did not waive interest against the MSMEs even for a day, despite the fact that during these shutdowns, the bank did not provide any services to its customers. The FCIK members regretted that the government was watching the humiliation of entrepreneurs as a mute spectator.

    The FCIK authorities assured the Presidents of organized sector to take up their grievances with relevant quarters for redressal. They also agreed to make all relevant issues public in a series of press releases. The meeting of the Presidents of organized sector would be held periodically but more frequently to take stock of the situation.

    The FCIK’s call to recognize the plight of MSMEs in the Kashmir region highlights the need for the government to take immediate action to fulfil its commitments to this vital sector. The MSMEs are a significant source of employment and economic growth, and it is imperative that the government provides them with the necessary support and assistance to help them weather the ongoing crises. The FCIK’s efforts to address the issues facing the MSMEs are commendable, and it is hoped that the government will take the necessary steps to address the concerns raised by the FCIK and other stakeholders.

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    ( With inputs from : kashmirlife.net )

  • FCIK Expresses Regret Over Destruction Of Industrial Unit In Fire

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    SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has expressed regret over the fire incident which took place in industrial estate Anchidora, Anantnagon Thursday evening in which the property worth over 100 lakhs belonging to a polyfoam mattress manufacturing unit M/s 5-Star polymers was destroyed

    While conveying deepest sympathies on behalf of the apex organisation, the President FCIK assured the promoter of the unit Afroz Shah of every possible support that they required at this crucial juncture.

    “FCIK put the onus of all fire incidents in industrial estates on the industrial corporations manning these estates which have miserably failed in building the necessary firefighting infrastructure in industrial estates of the valley,”  the FCIK said in a statement, adding, “ The unit in Anchidora could have been saved from massive damage had the corporation put in place fire hydrants and water storage facility in place. Although the unit was equipped with fire extinguishers, these couldn’t help in controlling the fire as it had already spread before the fire fighters reached the spot.

    FCIK called the attention of the government to direct the concerned for installation of fire hydrants in all small estates which could work as the first line of action in case of a fire till fire tenderers reached the affected estates. The government should provide full-fledged fire stations in more and more estates and make these fully functional, President FCIK demanded.

    FCIK also demanded that the industries department take stock of the fire incident in Anchidora and reach out to the affected unit for all possible help and facilitation.

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    ( With inputs from : kashmirlife.net )