Tamil Nadu

Micro units in Coimbatore seek measures to help them revive

The micro units in Coimbatore have appealed to the State government for measures to help the units revive in the current COVID-19 situation. The Federation of Coimbatore Industrial Associations has written to the Chief Minister and the District Collector in this regard.

The Federation has sought relaxations in lockdown restrictions, exemptions from e-passes and 2% interest subvention for MSMEs (Micro, Small and Medium Emterprises) as announced in 2018. The Federation said the government should permit inter-district travel for MSME owners, without e-passes. Since inter-district travel is permitted only with an e-pass, industries are unable to take up machinery maintenance, collect dues, etc.

Further, as bus and rail services are suspended, workers are unable to return to Coimbatore for work from other districts and States, and this affects production. The government should exempt micro units from e-passes for inter-district travel. It should also issue business e-passes to suppliers who want to visit Tamil Nadu from other States and exempt them from mandatory quarantine.

The government should resume bus and rail services and exempt MSME units from total lockdown on Sundays.

In the memorandum to the District Collector, the Federation said the Prime Minister had announced a 2% interest subvention scheme for MSMEs in February 2018. All MSMEs that are GST or Udyog Aadhar-registered are eligible for the scheme for loans taken from scheduled commercial banks between November 2, 2018 to March 31, 2020. A unit was able to get a maximum of ₹2.83 lakh benefit for ₹1 crore loan. The banks are reimbursed by SIDBI (Small Industries Development Bank of India) for the benefit extended to the MSMEs. However, several banks have not passed on the benefit to the MSMEs.

The micro units urged the Collector to intervene and ensure that the MSMEs get the 2% benefit. Every bank should assign an officer for this scheme, the Federation demanded.

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Printable version | Sep 23, 2020 8:58:41 AM | https://www.thehindu.com/news/national/tamil-nadu/micro-units-in-coimbatore-seek-measures-to-help-them-revive/article32276056.ece

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