: Ancillary units of BHEL have sought enlargement of the ambit of the scheme for Restructuring of MSME loans launched last year by the State Government to mitigate COVID impact, so as to factor in the recession in the thermal power sector in the preceding years.
The government had announced that the new scheme will be implemented to facilitate MSMEs and their creditors to reach an agreement on restructuring their liabilities through tripartite forums at the district level.
A Committee with representatives of TIIC (Tamil Nadu Industrial Investment Corporation), TIDCO (Tamil Nadu Industrial Development Corporation) and DIC (District Industries Centre) had considered the case of 33 sick industries in Tiruchi.
On reaching an agreement such units will be linked to top-up loans by financial institutions with support from Government credit guarantee, as per the scheme.
The State Government had launched CORUS – Covid Relief and Upliftment Scheme to provide financial assistance to MSME units.
TIIC has formulated this special package to ease the fund flow to meet emergent fund requirements for expenses related to capital expenditure and working capital needs. The key objective of the Covid Relief and Upliftment Scheme - to meet out the liquidity crisis due to Covid 19 pandemic, will address the issues faced by the ancilllary industries in Tiruchi only if the recession that had started in 2014 in the thermal power sector is taken into consideration, Rajappa Rajkumar, president of BHEL Small Industries Association said.
Also, the government orders must have absolute clarity, with a sense of purpose, such that banks do not raise any queries, Mr. Rajappa Rajkumar emphasised.
The government had set specific norms for industries in MSME sector to avail the utility of financial benefits. The ancillary units of BHEL would find themselves out of the reckoning if certain rigid norms are not relaxed, the promoters of the MSME units point out.
