Coimbatore

Industries look for support from govt.

The Micro, Small and Medium-scale Enterprises (MSMEs) here have appealed to the bank to implement the announcements of the Reserve Bank of India (RBI) and also to come out with special measures so that industrial activity revives after the lockdown period.

Tamil Nadu Association of Cottage and Micro Enterprises president J. James said some of the nationalised and private banks had sent messages to the industries asking them to reply to a number if they did not want the interest to be debited.

“We have not received any message from the banks. The interest has been debited,” he said.

In a memorandum to RBI Governor Shakthikanta Das, Mr. James said that though the Governor had ordered all national, private banks and financial institutions to give three month period to the debtors to pay the interest for loans, the banks had debited the interest amount. The banks were also sending messages to the account holders who did not have adequate amount to have enough money in the account.

The RBI should order banks to refund the deducted instalment amount and also should not ask people to pay the interest, he said.

R. Ramamuthy, president of Coimbatore District Small Industries Association, said the banks had deducted the interest to all MSMEs that had accepted auto-debit. “The bank officials have promised that the amount will be credited to the accounts of the units again. We hope they do it soon,” he said.

But there are also reports that many banks are debiting and are not reversing it. This is affecting finance of the micro units.

Southern India Engineering Manufacturers Association president V. Krishnakumar said that water pumps were used for agricultural purposes and as summer had set in, panchayats need water pumps to provide drinking water.

Companies had received orders for pumps, but were unable to supply. So pumps should come under essential commodities.

Further, goods in trucks were stuck in different places and many States were not allowing the trucks to proceed. The States should permit movement of the goods and give relief to the industries.

The government should provide financial support to the industries to continue to take care of the migrant workers, he said.

Tiruppur Exporters Association president Raja Shanmugham said the government should pay one month salary to all ESI card holders. In the case of unorganised work force, who did not have ESI card, the government could make payments through the Jan Dhan accounts.

The industries need one year moratorium to repay interest and loans. When the global market opened up, fresh working capital was needed, he added.

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jul 7, 2020 9:26:34 PM | https://www.thehindu.com/news/cities/Coimbatore/industries-look-for-support-from-govt/article31251974.ece

Next Story