(MENAFN - KNN India) SSI units are on verge of closer due to non-release of payments by Government Depts: BBIA
Jammu, July 27 (KNN) The Small Scale Industrial (SSI) units are on the verge of closure due to non-release of payments by Government departments in time resulting into huge financial losses, said Bari Brahmana Industries Association (BBIA).
In a meeting held under the Chairmanship of Lalit Mahajan, the members of the association discussed the acute financial crisis being faced by the local SSI Units due to non-release of payment of crores by various Government departments like PHE & Power Development Department (PDD).
The association informed that bills for the supply made to PDD and PHE Department by the SSI Units amounting to crores of rupees are lying pending with the Government.
It said 'PDD is clearing the bills of industrial units for the supply of materials under the Saubhagya Scheme on the basis of ‘Pick & Choose Policy' for the reason best known to the concerned executive engineers to whom the bills have been sent for the verification.
The members of the association pointed that the bills have been sent for the verification to executive engineers in spite of the fact that the bills submitted by the SSI sector duly supported by the acknowledgement for the material received by concerned executive engineers as per the supply order and the requisite funds already received by PDD department from Government.
It is unjustified on the part of the PDD to withhold the payments of SSI Units which we termed it as a deliberate attempt of the concerned officials of the department to kill the local SSI Units established by the sons of the soil who supplied the material in time as per the order and have no connection weather the material has been used or not, it added.
Due to non-release of payments in time, SSI units are not in a position to pay bank interest on the borrowed money. Also, unit holders are not in a position to pay the Wages/Power Bills/GST Payments/Bank Interest & other Government dues, said BBIA.
It stated 'We fear that the accounts of the unit holders may be converted into NPA by the banks resulting unit holders have no option but to close down their units in near future which may be resulting in to the mass scale retrenchment of industrial workers.
Concerning the situation, BBIA has appealed the Governor of J & K, Satya Pal Malik, to intervene in to the matter and issue necessary orders for the immediate release of funds.