JAMMU: Rahul Sahai Chair PHDCCI Jammu expressed sincere gratitude to Chandra Shekhar Azad, Regional Director, RBI J&K and Ladakh, for giving PHDCCI the opportunity to present various suggestions, recommendations, and issues concerning the trade and industry sectors in Jammu.
Rahul Sahai said PHD Chamber of Commerce & Industry has actively conducted numerous programs on crucial topics such as TReDS, Udyam registrations, and CGTMSE, serving as a vital bridge between the government and entrepreneurs in policy advocacy. However, as we move forward, we would like to highlight several pain areas that continue to affect trade and industry in Jammu.
Firstly, Sahai said that it has been observed that enterprises with slightly shaky CIBIL scores are facing significant challenges in securing loans. Many are compelled to seek funds from open markets at exorbitant interest rates. We urge that decisions be made based on the actual ground position of these entities, allowing for some calculated risk to be taken. It’s often seen that those in genuine need of financial support are overlooked, while those less in need are repeatedly offered loans.
Secondly, Sahai welcomed the introduction of a new assessment model for MSMEs in the recent union budget. This model will enable public sector banks to develop in-house capabilities for evaluating MSME businesses based on their digital footprint, rather than relying on external agencies. We would appreciate insights on how banks plan to implement this model in practice.
Rahul Sahai said The union budget also introduced a mechanism to support stressed accounts, ensuring continued bank credit for MSMEs during periods of financial difficulty. This measure is crucial for preventing closures of small businesses during tough times, and we look forward to understanding how this will be operationalized.
Rahul Sahai appealed to banks, under their CSR mandates, to consider funding drug de-addiction centres in Jammu, such as the one established by JK Police in Sunjwan. This is a pressing social issue, and additional contributions are needed to support this cause.
Regarding TReDS, Sahai recommended that the RBI should suggest that government and semi-government departments, both at the state and central levels, be included on TReDS platforms. This would enable enterprises to access bill discounting facilities for payments due from the government.
Rahul Sahai said With the reduction in the turnover threshold for mandatory onboarding on TReDS from ₹500 crore to ₹250 crore in the budget, we request that all banks ensure compliance by requiring customers to declare their registration on the platform.
Sahai said Additionally, we seek clarification from SIDBI regarding the establishment of new branches in MSME clusters, as announced in the budget. This initiative aims to enhance the bank’s reach, providing direct credit within three years, with 24 new branches scheduled to be opened this year alone.
Sahai mentioned that Some other significant announcements in the budget include the introduction of a credit guarantee scheme for MSMEs involved in manufacturing, facilitating term loans for equipment and machinery without collateral. Another scheme aims to pool credit risks for MSMEs within clusters, offering guarantee covers of up to ₹100 crore. Furthermore, the limit for Mudra loans has been increased from ₹10 lakh to ₹20 lakh for those with a history of timely payments is also a welcome step .
Rahul Sahai said New business opportunities for banks have also been outlined, including financial support for setting up irradiation units within the MSME sector, the facilitation of NABH-accredited food quality and safety testing labs, and the creation of e-commerce export hubs to help traditional artisans access international markets. Banks should tap these new areas.
Sahai thanked Reginal Director RBI and appreciated for his attention to these matters and look forward to your continued support in addressing the challenges faced by the trade and industry sectors in Jammu.
