Hit by power cut, industries are going in for generators to continue production and banks are coming forward to give loans for purchase of generators.
Coimbatore District Lead Bank Manager J. Vanangamudi told The Hindu on Saturday that most of the industrial customers went to their existing banker for a loan for generator. The units would have already submitted collateral for their existing loan, and hence that was not a problem and many banks came forward to give additional loans for purchase of generators too now. However, the loan off-take was not high, especially from very small units, he said.
The credit off-take trend in the district by small and medium-scale segment would be discussed at a district level meeting planned here on November 30, he added.
Some of the small-scale industry owners said the banks were now offering overdrafts to those who required additional funds.
However, the micro unit owners feel that the banks should support them more with credit to operate the industries and also to purchase generators.
S. Ravikumar, president of Coimbatore Tirupur District Micro and Cottage Entrepreneurs Association, said though the banks said they were willing to give loans for purchase of generator sets, the situation was different at the branch-level. The industries were suffering from more than 50 per cent drop in production and were struggling to repay the existing loans. Hence, the banks were not ready to provide additional finance.
J. James, president of Tamil Nadu Association of Cottage and Micro Enterprises, said many of the micro units were unable to provide the documents that the banks asked for loans for generators. The association had asked all its members to approach the banks for loans for generator sets. Further, the government should expedite the payment of subsidy for generator sets. In Coimbatore, there were instances of units waiting for more than four months now for the subsidy after submitting the application, he said.
The units usually submitted the application for the subsidy to the District Industries Centre after purchasing a generator set and getting a safety certificate. The State Government gave up to 25 per cent subsidy. Since the units were in need of finance now, the subsidy should be disbursed at the earliest, he said.