MSMEs appeal to government for assistance

MSME models throughout Tamil Nadu have made an appeal to the Centre and the State governments, searching for monetary help and different types of assistance to assist them tide over the COVID-19 disaster.

In a letter to Chief Minister M.K. Stalin, The Tamil Nadu Small and Tiny Industries’ Association (Tanstia) requested that fastened costs for Low Tension provides and demand costs for High Tension provides be waived for the lockdown interval.

The affiliation additionally requested the government to allow employees to journey on two-wheelers as MSME models can not afford to prepare buses or different modes of transport for them.

S. Anburajan, president of Tanstia, stated cleaning soap and detergent producers needs to be thought-about as important producers as these merchandise are used for hygiene functions. He stated current models producing oxygen and different important items needs to be thought-about for working capital assistance from the Tamil Nadu Industrial Investment Corporation at a subsidised fee of curiosity.

A letter was additionally despatched to Union Finance Minister Nirmala Sitharaman, requesting the withdrawal of the Sarfaesi Act or not less than an exemption for models which have taken loans of up to ₹5 crore with instant impact, which might assist them survive. “To help the entrepreneurs, ESI and PF for the lockdown period (at least three months) should be paid by the Union government without any pre-condition. This will be of great support to the industry,” Mr. Anburajan stated.

The Guindy Industrial Estate Manufacturers Association has written to the Finance Minister stating that greater than 80% of the MSME models would develop into NPA and could be pressured to shut down if the government didn’t present instant help. Association president K.V. Kanakambaram has requested the RBI and banks not to impose NPA norms on the MSME models for a interval of two years and provides further packages for restructuring of the models.