Industrial units have demanded immediate release of Rs 150 crore against the approved cases under various central and state interest and insurance subsidy schemes to help them tide over acute financial stress.
The Bari Brahmana Industries Association (BBIA) said due to cumbersome procedure adopted by the central and state governments for the refund of fiscal incentives on quarterly basis, the reimbursement is delayed and not even a single payment of incentives made to industrial units which has impacted their working badly.
BBIA appeals Chief Minister Mehooba Mufti, Finance Minister Syed Mohammad Altaf Bukhari and Industries and Commerce Minister Chander Parkash Ganga to kindly intervene in to the matter to provide immediate relief to the industrial units by releasing the funds on provisional basis against the pending claims, President of the association Lalit Mahajan said in a statement after an emergency meeting.
He said the BBIA also appeals the government to ensure amendment in the requisite notifications for the reimbursement of fiscal incentives on monthly basis instead of quarterly basis and also take up the matter with centre for the release of Rs 150 crore immediately against the sanctioned cases of DIPP in respect of CIS/Interest and insurance subsidy.
He said BBIA expressed concern due to blockage of huge amount of working capital in respect of deposit of IGST, CGST and SGST since July 8 last year in the GST regime against the fiscal incentives of the central and state governments as granted for the Industrial sector.
The industry is facing acute financial crisis due to blockage of huge amount and we fear that the unit holders have no option but to close down their units in near future, he said.