More than 14,000 Micro, Small and Medium Enterprises have suffered huge losses due to the recent rains and floods. Of this, 10,000 are micro units, including service enterprises, which produce components for small and large enterprises.
More than 3,000 small units and 1,000 medium units are bleeding. But an exact estimate of the losses could not be arrived at as the State government is in the process of evaluating the damage caused to the firms.
The units are in industrial estates across the State including Guindy, Ekkattuthangal, Ambattur, Padi, Thirumudivakkam, Thiruvallur, Kancheepuram and Cuddalore.
Insurance not covered
Union Minister for Micro, Small and Medium Enterprises Kalraj Mishra, after visiting the units in Chennai on Saturday, said, “Most of these units have no insurance cover for their assets.”
Most of them also incurred production loss which again was not covered by insurance. “The extent of loss suffered by them is difficult to assess immediately. The State government is collecting relevant data on this aspect,” the Minister said.
More than 50,000 employees would be left without jobs if these units don’t recover soon. The MSME industry has more than 60-70 per cent indirect workers who will have to wait till these units open.
Mr. Mishra indicated that the affected units would require several months of lead time to recommence operations.
Loans needed
Currently, the major issue that needs to be addressed is easy access to credit and possible restructuring of existing loans for the MSME units.
For this, the Minister said, “Issues relating to bank credit come within the administrative responsibility of the Ministry of Finance, which will be taken up with the Finance Minister.”
MSME Secretary Anup K. Pujari said, “Our team had discussions with RBI officials in Chennai and bankers, who explained what best they can do to help the industry recover.”
Some of the units have lost documents and their files and records have been damaged beyond recognition.
C. Muthusami, president of Tamil Nadu Small and Tiny Industries Association, requested that officials should be instructed not to insist on providing the past records of ESI, PF, Central Excise, Service Tax, from the affected MSE units.
