PDD Fails to Release Payments To SSI Units Even On Eid

Suffering Unit Holders Send an SOS to Governor Vohra

SRINAGAR — Power Development Department (PDD) has failed to release pending payments, it owes to scores of SSI unit holders, despite lapse of ten months.  

Kashmir Electrical Manufacturers Association (KEMA) on Monday expressed serious concern over non-release of pending payments of SSI units from last “ten months” for the supply of material to the Chief Engineer Procurement and Material Management, PDD against the valid supply orders.

According to a statement issued by the association, payments worth crores of Rupees against works done are pending with the department. 

“Due to delay in release of pending payments the working capital of the units stands exhausted resulting in serious financial crunch and accumulation of liability of crores of rupees”, KEMA president Raja Nayeem Khan said.

“We fear that the unit holders have no option but to close down their units if their outstanding payments are not released immediately,” Khan said, adding shut down will result in retrenchment of thousands of workers.

Khan said as per the Delayed Payment Act 2006 of Govt. of India, “It’s mandatory for all the government departments to release the payment of SSI sector within 45 days from the date of receipt of material otherwise the department is bound to pay the interest on the delayed payment but the concerned official are not adhering to the guidelines of the act for the reason best known to them,” he said.

The KEMA president also pointed out that in spite of requisite funds allocated to all the departments, by the government for the clearance of material purchased by the various Government departments from the MSME sector, the officials of Power Development Department did not release the payments of Unit holders resulting in great inconvenience to the unit holders. “The department even disregarded the approaching Eid and units holders and their workers are penniless on this big festival,” said Laitf Ahmad Shah, a unit holder.

When Kashmir Observer raised the issue with Sunil Gupta, Chief Engineer Procurement and Material Management, PPD, he expressed helplessness saying PDD has no funds available for the unit holders.

“We haven’t received grants for the their payment. We have taken the up the issue with Chief Secretary and the grants are likely to be released in the month of September”, Gupta said, adding “We can release the payment only once grants are released.” 

He however said payments of only four months is pending with the department. 

Meanwhile KEMA has sent an SOS to Governor N.N.Vohra urging him to intervene in the matter and give direction to the concerned Departments for the immediate release of pending payments of the unit holders.


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