Kashmir Economic Alliance Chairman, Mohammad Yaseen Khan has asked Governor to withdraw its decision on turning J&K Bank into Public Sector Undertaking(PSU).

Khan said, “there are already many PSU’s like JK State Financial Corporation(SFC), SIDCO, JKSRTC, JK Industries and many others present in state of J&K. Some of these PSU’s are financial institutions like JKSFC and SIDCO whose role in the development has been minimal and are on the verge of extinction. These PSU’s have eroded the entire capital provided to them by state Government.”

Khan who also head Kashmir Traders and Manufacturers Federation (KTMF) said,  “besides being a burden on the state government exchequer these PSU’s have been provided a budgetary support every year despite of the fact they have incurred heavy losses till date.” “Almost all PUS’s of the state have got rid of their employees by the virtue of different schemes like Voluntary Retirement (VRS), Golden Handshake etc and many of them have sold their assets like land and building to clear them of their liabilities,”Khan said.

Khan said, “all the PSU’s which have been created in last three four decades have proven to be utter disasters so far as development and employment generation is concerned, not to speak of revenue generation.”

“On the contrary J&K Bank was created during the Mahraja’s rule with the main objective of the development of state of Jammu & Kashmir. Ever since J&K Bank has remained an autonomous financial institution as a result of which it has the distinction of being  largest / profitable institution of the state. Also it is the second largest employer of the state after the Govt of J&K itself” , Khan said.

Khan said, “J&K Bank is the only Limited Company of the state listed in the National Stock Exchange. He said it has been the only backbone of the state’s economy with a lending of more than 25,000 crores to the people of Jammu and Kashmir. However the other nationalised banks working in the state don’t even contribute to the 10% of what J&K Bank does.”

“J&K Government being shareholder of the J&K Bank has recovered its capital investment manifolds in the form of dividends paid by the J&K Bank to the State government annually,” he said.

“However the remaining shares are being owned by the people of Jammu & Kashmir which includes widows, destitutes , orphans and other people. The J&K Bank has sustained  these families by providing them steady income in the form of dividends for the shares owned by then,” Khan said.

Khan said, “after comparison of different existing PSU’s and the achievements of J&K Bank what has compelled the Governor to take such a decision. Obviously it can never be a decision for the betterment of the State or the institution, “ Khan said.  “The present dispensation is an interim arrangement required to handle daily affairs of the state. Such decisions need to be take by the popular governments who are accountable before the public.”, Khan said.

Khan said, “we are now left with no choice to save our state and institutions by mobilising public opinion and hitting the roads against such disastrous and adverse decisions of the SAC. Unless the order is not rolled back immediately we will be forced to call for a state wide agitation.”