The industries in the region, from the micro engineering units to small-scale textile mills, have sought more support from the Central and State Governments as workshops, spinning mills and garment manufacturers resume operations after the lockdown.
According to the South India Spinners Association president N. Murugesan, with both, the Central and the State governments, requesting all the industries to take care of their migrant workers, all the mills provided food and accommodation to the workers during the lockdown. With the recent relaxations, the migrant workers are returning to their respective States due to uncertainty of the pandemic COVID-19. The mills have no alternative resources for manpower and are struggling to restart production.
Further, the Tamil Nadu Generation and Distribution Corporation sent electricity consumption bills for the month of April to the mills, with a 90 % payment of MD charges and a hefty fine for not maintaining the Power Factor. “This was completely unreasonable as the textile mills did not shut down to cater to their own interests but followed the Government’s orders to cater to the pandemic.” The textile mills have now approached the courts seeking reduction in the demand charges. While the industries welcome the announcements of the Union Finance Minister, the main request of all the industries to the Government was to waive off the interest for a period of six months and provide interest subvention for one year. However, this was not addressed by the Government, he said.
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Raja.M.Shanmugham, president of the Tiruppur Exporters Association, said in a press release that after the Finance Ministry’s announcement of stimulus measures for the MSMEs, including 20 % of entire outstanding credit as a collateral free loan, when the exporting members approached the banks to avail of the loans, the banks are insisting to submit Memorandum of Deposit of the Title Deed (MODT) after registering at the Sub-Registrar Office.
Mr. Shanmugham said that while registering, the exporting units have to pay the Stamp Duty charges against the loan amount as fixed by the Tamil Nadu State Government.
As the MSMEs are currently struggling to meet their financial end due to COVID-19 impact, he requested the State Government to provide one time exemption from the payment of the MODT charges and help the MSMEs.
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In a joint memorandum to the State Government, 19 industrial associations representing the micro and small-scale industries here sought either waiver or six months time to pay the electricity bill, exemption from MODT to get the benefits from the banks as announced by the Finance Minister, and operation of buses to all districts so that the workers can return to the industries without getting e-passes.