Of 64,029 disturbance-affected business units, only 7752 rehabilitated so far
Srinagar, Dec 3: Rehabilitation of business units hit by the April-May 2025 disturbances remains abysmally slow, with official data showing that only 7752 of the 64,029 affected accounts – just about 12 percent – have been covered under the relief package so far.
The disturbances followed the April 22 Pahalgam terrorist attack in which 26 tourists were killed and the subsequent India-Pakistan conflict, triggering a severe economic disruption across Jammu and Kashmir.
According to the details accessed by Greater Kashmir, the matter was reviewed during the 16th meeting of J&K UTLBC on June 21, 2025.
During the meeting, it was decided that a committee comprising Jammu and Kashmir Bank, State Bank of India, and Punjab National Bank would frame a comprehensive rehabilitation package for affected enterprises.
Subsequently, the J&K government, with the approval of the Lieutenant Governor, issued a notification on August 8, declaring entire J&K as disturbance-affected with effect from April 22.
A senior banking executive said, “The approved rehabilitation package was circulated among all banks on September 6 for implementation. However, the latest data reveals sharp gaps in execution.”
J&K Bank reported 36,192 affected units involving Rs 1930.57 crore of which only 7133 accounts have been rehabilitated.
SBI has rehabilitated merely 362 of 10,800 affected accounts, while PNB has covered 235 of 9581 units.
HDFC Bank, despite exposure to 2044 affected units worth Rs 790.93 crore, has not rehabilitated a single account to date.
In total, banks have extended relief of only Rs 494 crore against an overall affected exposure of Rs 5055 crore.
“As per the plan, all banks were supposed to complete the rehabilitation by November 5, 2025. But the progress is nowhere close,” said an official familiar with the matter. “Banks have now approached UTLBC seeking an extension till December 31 to ensure wider coverage of eligible borrowers.”
Trade bodies argue that businesses cannot survive without urgent intervention.
Kashmir Chamber of Commerce and Industry (KCCI) President, Javid Ahmad Tenga said he has already written to J&K Bank, formally requesting an extension in the implementation timeline.
“The situation after the April 22 attack has been extremely challenging for businesses. Tourism has taken the biggest hit, allied sectors have collapsed, and this downturn has spread to transport, handicrafts, retail and services,” Tenga said. “We are also demanding a one-time settlement scheme for borrowers who have suffered due to a prolonged slump. Thousands of traders and entrepreneurs are unable to revive their units without decisive financial support.”
President Kashmir Trade Alliance, Aijaz Shahdhar, said many small and medium businesses are “on the verge of closure” due to the slow rollout.
“The relief package is meaningful only if it reaches people on time. Every week of delay pushes more businesses deeper into distress,” he said.
Meanwhile, banking officials said that procedural delays and verification processes had contributed to the slow progress, but assured that rehabilitation efforts would accelerate if the deadline is extended.
