Jammu and Kashmir: Govt approves Rs 250 cr interest subvention for business revival

Arun Kumar Mehta, Financial Commissioner, Finance Department and RK Chhibber, Chairman and MD J&K Bank were present on the occasion.

Government of J&K has already released Rs 500 crore so far, and today another instalment of Rs 250 crore as 5% Interest Subvention was released as part of the overall package of Rs 1353 crore, an official statement said.

The Interest Subvention has so far provided relief to 3.44 lakh borrowers in the current Covid-19 crisis.

The J&K government had announced a mega Relief and Revival Package of Rs 1353 crore on September 19th, 2020 to help J&K business sector to tide over the Covid-19 crisis and other difficulties.

The business revival package involved relief measures, both financial and non-financial, aimed primarily at the sectors which had been most affected by the ongoing situation so as to achieve sustainable and continued growth.

The Lt Governor observed that the core component of the package was Rs 950 crore as 5% Interest Subvention to all borrowers.

Apart from Interest Subvention, Local and MSME filters have also been operationalised on GeM enabling all departments in J&K to procure Goods and Services from the local manufacturers, the statement said.

Local and MSME filters can be used together for procurements made up to Rs. 5.00 lakh from local manufacturers.

For purchases above Rs. 5.00 lakh, additional terms and conditions clause can be used by the departments for restricting procurement within a geographical limit, through the process of bidding on the GeM, said the Lt Governor.

Pertinently, it was one of the important components of the economic package announced by the Lt Governor for giving boost to local entrepreneurship.

To provide further impetus to business and ensure ease of doing business, Single Window Portal has been set up and online clearances introduced.