The micro units in district, which resumed operations just a few days ago, are reportedly facing pressure from building owners to pay rents and this is adding to the financial strain of the industries, according to the unit owners.
J. James, president of Tamil Nadu Association of Cottage and Tiny Enterprises, said more than 20,000 micro units are operating in Coimbatore Corporation limits. Most of these industries are functioning on rented buildings. They had remained shut for almost three months now and hence are unable to pay rent for the buildings. “The house owners are now demanding that the units pay the rent. Many of the building owners are dependent on the rentals for their livelihood and hence we are unable to say that we will not pay the rent. This is developing into a major problem,” he said.
Mr. James said that since the lockdown is not lifted completely, the industries are facing several challenges - raw materials that are to come from other States are not supplied regularly and hence the price of the materials available locally has shot up. The prices are nearly 20 % higher that what they were in February. The migrant workers are leaving for their home States and so there is labour shortage, he said.
According to Kovai Power Driven Pumps and Spares Manufacturers’ Association, the government should extend six moratorium for industries for interests taken on loans and should reduce the GST rates by 75 %. The registered MSMEs should get minimum ₹1 lakh long term loan at low interest rates.
