‘J&K should follow Maharashtra’s example to help local economy’

Kashmir business community wants J&K government to follow Maharashtra example to help local economy come out of the depression it has slumped into post August 2019?

On March 31, the Maharashtra government announced an average8 per cent electricity tariff cut for the next five years to help businessesand people tide over the covid19 crisis. Industry has been given the highestbenefit. The decision by the Maharashtra government was taken within seven daysof the lockdown.

   

“Our economy has been shattered by the continued lockdownpost August 2019. This is high time the J&K government announced reductionof power tariffs to help both the domestic and the commercial consumers,” saidPresident, Kashmir Chamber of Commerce and Industries, Sheikh Ashiq.

“We have already presented a loss assessment report (to thegovernment) covering four-month period post-August 2019. The report shows thatJ&K has suffered Rs 18,000 crore business loss and there has been over 4lakh job losses. In this situation government must safeguard interest of thebusiness community,” he added.

Chief Spokesperson of Kashmir Economic Alliance, FarhanKitab said: “There is need to take drastic decisions like Maharashtra has doneto safeguard their economy. We are facing lockdown since August 5, our bankaccounts are on verge of becoming NPAs, and hundreds of businessmen have becomebankrupt.”

“In such a situation a decision, like power tariffsreduction by over 50 percent will help industry as well as the businesscommunity and general masses. Union Territory of Jammu and Kashmir has a hugehydroelectric potential which is being exploited by outside companies, let thegovernment seek power at cheaper rates from them for next five years in orderto pass on the benefit to people,” he suggested.

However a senior Kashmir Power Development CorporationLimited official said that “financial constraints of UT administration willstop them for taking such a decision.”

“Power sector is a big drain on the UT’s annual budget; wehave outstanding liability of Rs 11,000 crore which the government owes tooutside power supplying companies. In this situation it is highly unlikely thatJ&K administration would reduce power tariffs to help economy.”

He said that Budget last year had kept Rs 6,000 crore forpower purchase while as the revenue generated by way of collection of tariffwas Rs 2250 crore.

It is pertinent to mention that J&K government hadannounced power amnesty scheme for consumers who had failed to clear their duespost August 2019.

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