Extending major relief to September -2014 flood affected traders/business units, the Cabinet which met here today under the Chairmanship of Chief Minister, Ms Mehbooba Mufti accorded sanction to the grant of 5% interest subvention w.e.f 1st April, 2016 with a cap of Rs 5 Lac per unit for a period of four years.This means subsidizing interest on loan to flood hit traders/ business to an extent of 5% starting from 1st April-2016 to 31st December-2020.
Cabinet sanctioned the second tranche of assistance proposed to be given to small traders and business establishments who have been given start up incentive with turn over upto Rs 10 Lac.This interest subvention assistance also extends to such affected business units having existing linkage with the banks but may have not availed the Special Rehabilitation Package as approved by SLBC in its meeting held on 23rd September- 2014 and also do not figure in the list of units identified by the concerned Divisional Commissioners.
To ensure proper implementation of the interest subvention assistance scheme, Cabinet ordered constitution of a High Level Coordination Committee headed by Chief Secretary and comprising representatives of Relief & Rehabilitation department, Finance department, Planning & Development department, Industries & Commerce department, J&K Bank (SLBC) and or any other appropriate agency.The Committee shall meet on monthly basis and ensure that only genuine traders/self employed business units have been covered by the banks under the scheme, ensure proper end utilization of the released assistance, consider mid course corrections/changes in the modalities of implementation based on feedback from relevant stakeholders and take proper action to redress grievances of traders /business units.