Search the Internet          Tips  Sites: Finance, Investment

Business activity begins to pick up in Srinagar

Onkar Singh in Srinagar

Major successes by the armed forces against the terrorists in last couple of months and a marginal drop in the infiltration from across the border has given some respite to the business community in Jammu and Kashmir.

It was business as usual at Lal Chowk the hub of the business activity in Srinagar.

"There has been a sea change in the security environment in recent weeks and we have now been able to open our shops as early as 8 a.m. and close well beyond 9 p.m.," said Mohamaad Maqbool told rediff.com in Srinagar, Maqbool, a businessman from Barmulla had come to the state capital to make some purchases for his electronics shop.

The eating joints, bakeries and paan shops are the first one to open and the last to close. The big show rooms are loaded with most expensive electronic gadgets ranging from television sets, washing machines, refrigerators. While the cloth merchants could be seen displaying their goods to the potential customers.

"We could not think sometime back that we would have a scenario like this when we would be able to do business as we had done prior to the spread of militancy in the state in 1989. But the tourists who used to be our major buyers are still missing. And second, we never know when the terrorists would strike and spoil the whole show," said a show room owner of an electronic shop.

Ijaz Ahmad, owner of J K Stationers, has sold record number of Honda generators in the past few months. To boost his business he has tied up with some private financers to sell his products gensets and motorcycles on an instalment basis.

"I had approached various banks to help in launching instalment schemes for selling products, like motorcycles for example. But most of the banks are not willing to take any risk and hence I had to encourage private financiers to put their money to sell my goods," Ijaz Ahmad told rediff.com.

How does he recover his money?

"I have employed some enterprising youngsters to handle that. I take fifty per cent advance and the rest in six post dated cheques. We tell the buyers that if they don't pay up in time or their cheques are dishonoured then they would lose the product," he said.

He claimed that the recoveries have been excellent and more then 95 per cent customers have been making regular payments. As for the rest of 5 per cent are concerned they either pay in lump sum after one default or they lose the possession of their vehicle.

"I have appointed educated young boys to recover money from the customers who default," he said.

Mohammad Hanif, of Hanif Motors, is a businessman with a difference. He likes to sell his goods for cash payment only.

"Some years back my business was hit badly after my showroom was attacked by terrorists and completely shattered. I was targetted because I was doing business with the army and paramilitary forces. I incurred losses of Rs 2 million and till date the insurance company has not settled the claim. Hence, I do not believe in selling goods on instalments," he told rediff.com.

When asked why he does not sell his goods on instalments basis when this could give him a good business and his sales could go up substantially, he said that some shopkeepers were hand in glove with some financers.

"These private financiers in league with the shopowners fool the customer and charge him more by making him pay through instalments. I sell television sets, motorcycles, refrigerators, et cetera, but all against cash only. I had to start from scratch after the terrorist attack and hence I am playing it safe," he added.

However, most traders admitted that the business climate has improved over the last six seven months. "After the Indian army was deployed along the border, terrorists strikes have lessened. Business houses now are willing to give us credit for two to three weeks; something that was unthinkable a while ago," said the owner of a grocery shop owner.

Iqbal, who runs a restaurant in downtown in Srinagar, has been a victim of terrorist attacks in the past. Twice terrorists exploded bombs/grenades near his eating joint and his eatery suffered extensive damage. "Things, however, are looking up now. People are fed up with the violence. We have been hit badly. But it's better now. I hope we continue to have this peaceful environment," he said.

The owners of shikaras in the Dal Lake too could be seen doing brisk business as hundreds of tourists throng the place, particularly in the evenings to enjoy a boat ride. Some shikaras also sell soft drinks and eatables.

"Allah ke karam se sab theek hai," said an old shikara-wala who was ready to take a group of tourists for a ride when asked how he thought business is now.

ALSO READ:
More Money Headlines