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23/06/2016 07:39am

TN MSMEs hit by floods last year are yet to receive their insurance claims

image TN MSMEs hit by floods last year are yet to receive their insurance claims

New Delhi, June 23 (KNN) Even after months of being badly affected by the devastating floods, the MSME units are yet to receive their due claims from the insurance companies.

More than 14000 MSME units were badly affected by the floods last year and thereafter showed slow signs of recovery.

Talking on this issue to KNN, C. Muthusami, President of Tamil Nadu Small and Tiny Industries Association (TANSTIA) said, “MSMEs have been recovering so far but still a lot has to be done on this respect to bring them back on track immediately. State government took certain steps like setting up of State Level Bank Committee for quick disbursement of finances for MSMEs for re-development. Rescheduling of bank loans was also undertaken to reduce their burden.”

He further added, “Till date many MSMEs have not received their insurance claims so we recently took this matter to state government. We sent a report to state government to instruct insurance companies to settle claims of MSMEs units within 3 months. We have also demanded subsidised loans for MSMEs at 3% p.a. for both manufacturing and service MSMEs and not just manufacturing, as they did earlier. The review committee in government would give its report on 30th June, 2016 and we are optimistic about it.”

He also applauded government’s effort in replacing electric meters for MSMEs at zero- cost but concluded that a lot has to be still done in matters of quick settlement of insurance claims, better infrastructure and subsidised loans.

L.Venugopal, General Secretary, Ambattur Industrial Estate Manufacturing Association, also emphasised on the fact that manufacturing MSMEs are anticipating their insurance claims.

“The infrastructure is well in place but due to heavy rains this situation arose last year. The only issue is that even today many MSMEs have not got their claims. Government has provided financial assistance but MSMEs await the disbursement of their claims to at least again come back in business,” he concluded.

Meanwhile, Tamil Nadu Chief Minister J Jayalalitha recently met PM Modi and with reference to the floods in Chennai and some coastal districts of Tamil Nadu, she sought release of further assistance towards restoration and reconstruction of flood damages, sanction of a special scheme for construction of houses for the urban poor residing in water courses and water bodies, a special relief package for the MSME Sector and modification of National Disaster Response Fund Guidelines to cover MSME units were raised. (KNN/TL)


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