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KICC seeks Rs 600 cr for revival of sick industries

business Updated: Jan 20, 2009 12:58 IST

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Claiming that more than 87 per cent of industrial units in the Kashmir valley are sick, the local industry has sought from the state government Rs 600 crore for the revival of these units.

Quoting a survey by the Entrepreneurship Development Institute, Ahmadabad, the Kashmir Chamber of Commerce and Industry President Mubeen Shah said 87.13 per cent of units in the valley have turned sick due to the situation in the state, while the remaining are on the verge of sickness.

"Certain steps are necessary at the moment for revival and rehabilitation of the sick micro, small and medium enterprises (MSME) in the valley. The total estimate of this one time debt relief is not more than Rs 500-600 crore," KICC said in a report submitted to Jammu and Kashmir Chief Minister Omar Abdullah in Srinagar.

The rehabilitation should include hotels, houseboats, transport, handicraft, small scale industries, retailers and wholesalers, KICC said.

Further, Shah said he has already suggested to the Ministry of MSME to create a fund having a corpus of Rs 50 crore for revival and rehabilitation of the sick industrial units.

"The funding pattern may be on the basis of 60:30:10 - 60 per cent interest free loan from government with five years moratorium, 30 per cent capital investment subsidy and 10 per cent beneficiary contribution," he said.