TN government working on plan to support MSMEs hit by pandemic, says Minister

Minister for Rural Industries T.M. Anbarasan said the plan to be unveiled, would include a scheme for revival of the MSMEs and off setting the job losses through the creation of new jobs and by encouraging digitalisation

May 28, 2021 01:18 pm | Updated 01:18 pm IST - CHENNAI

Minister T. M. Anbarasan

Minister T. M. Anbarasan

Minister for Rural Industries T.M. Anbarasan said the State government is working on a plan to help MSMEs which have been hit hard by the second wave of COVID-19 pandemic.

“Amid COVID-19, MSMEs are facing financial stress, shortage of labourers as guest workers have returned to their home states and increase in production costs,” he said at a webinar organised by the Southern India Chamber of Commerce & Industry (SICCI).

Mr. Anbarasan said the plan to be unveiled, would include a scheme for revival of the MSMEs and off setting the job losses through the creation of new jobs and by encouraging digitalisation. The State government has announced capital subsidy for MSMEs and waived of registration fees till December, among other measures..

‘What Tamil Nadu Needs: SICCIs Policy Recommendations for the New Government’, was the theme for the webinar.

Ar Rm Arun, president, SICCI pointed out that the MSMEs have been facing a lot of stress and are finding it difficult to avail of working capital from the banks. He suggested measures including offering a loan moratorium for MSMEs and requested the State government not to levy fixed charges payment on electricity, among others.

Mr. Anbarasan said the government will consider the measures. He pointed out that Tamil Nadu is the third-biggest state for MSMEs after Uttar Pradesh and West Bengal. The state has 23.60 lakhs MSMEs providing 1.52 crore jobs.

“The MSMEs are a major contributor to the State’s economic growth, after agriculture. The DMK government plans to make Tamil Nadu the number one state for MSMEs,” the Minister added.

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