Jammu and Kashmir: LG Manoj Sinha announces Rs 1350 cr economic package to boost businesses

Lieutenant Governor of Jammu and Kashmir Union Territory, Manoj Sinha announced an economic package of Rs 1,350 crore for the business sectors severely hit during the COVID-19 lockdown.

Srinagar: Lieutenant Governor of Jammu and Kashmir Union Territory, Manoj Sinha on Saturday announced an economic package of Rs 1,350 crore for the ailing business sector hit during the COVID-19 lockdown.

The announcement of the package comes 12 days after the LG had constituted a committee under one of his advisers, KK Sharma, which had submitted its report and recommended such a package.

“The administration has taken various innovative decisions in the new economic package. The business has been suffering for the last about 20 years, we have decided to give an interest subvention of five per cent without any discrimination to all businesses whether small, medium, or heavy. This is unprecedented," Sinha said in a press conference here.

Sinha said other administrative measures have been taken which will benefit the people, businessmen, industry people, or those associated with tourism and other stakeholders in a huge way.

''We have decided to give 5% interest subvention to every borrower from the business community, without any conditions for six months in the current financial year. This will be a huge relief and help in generating employment here.''

Sinha said to promote the handloom and handicraft sector the government has decided to extend the maximum limit of Rs 1 lakh to Rs 2 lakh for people working in the handloom and handicraft industry. "They will also be given 7% interest subvention."

Sinha informed that from October 1, Jammu and Kashmir bank will start a special desk for youth and women enterprises.

''We have decided to waive 50 per cent for one year with respect to water and electricity on fixed demand charges for industrial and commercial which will cost nearly Rs 105 crore to the administration. Stamp duty exempted up to March 2021 in the case of all borrowers. Setting up customised Health-Tourism scheme by J&K bank for financial assistance to people in the tourism sector with good pricing and repayment options.''

The announcement has been hailed by the traders who said that it was a good beginning.

"We had met JK administration and the central government several times and demanded Rs 1500 crore package for traders only which is severely hit due to lockdown. This announcement is a good beginning," Yasin Khan, Kashmir Traders and Manufacturers Federation Chairman told ETV Bharat.

The Jammu and Kashmir economic and business sectors have been severely hit during the COVID-19 lockdown and the shutdown which was imposed by the government after the abrogation of Article 370 last year on August 5.