Jammu and Kashmir cabinet has approved the grant of 5 per cent interest subvention to flood-hit traders with effect from April 1, 2016 with a cap of Rs 5 lakh per unit for a period of four years.
The Cabinet, which met here today under the Chairperson-ship of Chief Minister Mehbooba Mufti, approved the move, Education Minister Naeem Akhtar told reporters.
The minister said that this means subsidising interest on loan to flood-hit traders and business to an extent of 5 per cent starting from April 1, 2016 to December 31, 2020.
The 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 up to Rs 10 lakh, he said.
To ensure proper implementation of the interest subvention assistance scheme, the 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, he said.
The minister said the Committee will meet every month and ensure that only genuine traders/self-employed business units have been covered by the banks under the scheme.
