MSME Ministry waiting for Fin Min's response on proposals for revival of flood hit MSMEs in TN
Updated: Jan 04, 2016 01:03:45pm
Coimbatore, Jan 4 (KNN) The flood-hit Chennai MSMEs, who are desperately waiting for their proposal to be accepted by the government for their revival, are leaving no stones unturned to meet the Ministers and urge them for faster action.
The small scale industry associations in Chennai went to meet Union MSME Minister Kalraj Mishra, who was in Coimbatore on Saturday.
Tamil Nadu Tiny and Small Industries Association (TANSTIA) told KNN, “We went to meet the Minister in Coimbatore to know the current status of our proposal submitted.”
“Kalraj Mishra has told us that his Ministry has forwarded the proposal to the Finance Ministry and is now waiting for the response from them,” said C Muthasami, President, TANSTIA.
In a meeting with the Mishra last year, TANSTIA had sought for tax breaks and easy loan repayment options along with some other benefits in order to help the flood hit micro and small units rehabilitate.
In a letter submitted to the MSME Minister the association suggested several measures to revive the units.
“The heavy rains damaged all the Micro and small units in the areas affected all over Tamil Nadu. Because of the natural calamity, the affected MSEs are not able to continue the activities,” Tanstia said.
In the letter, the association suggested that loans upto Rs 5 lakhs for the MSEs shall be waived and the Excise Duty/ Service Tax shall be waived for one year.
The industry body has urged the Minister that ESI and PF payments shall be waived for one year.
“PF Department can release 50% of the individual contribution amount for employees,” the letter suggested adding that the government should insist all PSUs/ Corporates to release the SME payments immediately.
The MSMEs have also urged the government to instruct the insurance companies to settle claims without any delay and release 50% of the assessed value immediately.
“Relaxation from NPA norms for one year for the units already declared as NPA and the units which are likely to become NPA as on 01.10.2015 so that they can reschedule and restructure their loans,” the entrepreneurs demanded.
Entrepreneurs who have not availed any loan so far, fresh loans with six months moratorium on interest and repayment in 5 years shall be given without any collateral with DIR interest rates up to Rs. 10 lakhs, Tanstia said.
Other measures suggested by the industry body includes that Sarfaesi Act should not be invoked to flood hit MSME units; loans upto Rs 10 lakhs should be given without any collateral; renewal of existing loans can be extended for one more year without any formalities; and exempting import duty for spares on machinery components including electronics.
MSME Ministry on Saturday visited the flood hit units in Chennai and Guindy and reviewed the situation. The Minister said that around 10,000 micro units, of which 95 per cent are into service sector, has been hit by the Chennai floods, while loss in terms of employment has been to the tune of 50,000 in the micro enterprises alone. (KNN Bureau)
The small scale industry associations in Chennai went to meet Union MSME Minister Kalraj Mishra, who was in Coimbatore on Saturday.
Tamil Nadu Tiny and Small Industries Association (TANSTIA) told KNN, “We went to meet the Minister in Coimbatore to know the current status of our proposal submitted.”
“Kalraj Mishra has told us that his Ministry has forwarded the proposal to the Finance Ministry and is now waiting for the response from them,” said C Muthasami, President, TANSTIA.
In a meeting with the Mishra last year, TANSTIA had sought for tax breaks and easy loan repayment options along with some other benefits in order to help the flood hit micro and small units rehabilitate.
In a letter submitted to the MSME Minister the association suggested several measures to revive the units.
“The heavy rains damaged all the Micro and small units in the areas affected all over Tamil Nadu. Because of the natural calamity, the affected MSEs are not able to continue the activities,” Tanstia said.
In the letter, the association suggested that loans upto Rs 5 lakhs for the MSEs shall be waived and the Excise Duty/ Service Tax shall be waived for one year.
The industry body has urged the Minister that ESI and PF payments shall be waived for one year.
“PF Department can release 50% of the individual contribution amount for employees,” the letter suggested adding that the government should insist all PSUs/ Corporates to release the SME payments immediately.
The MSMEs have also urged the government to instruct the insurance companies to settle claims without any delay and release 50% of the assessed value immediately.
“Relaxation from NPA norms for one year for the units already declared as NPA and the units which are likely to become NPA as on 01.10.2015 so that they can reschedule and restructure their loans,” the entrepreneurs demanded.
Entrepreneurs who have not availed any loan so far, fresh loans with six months moratorium on interest and repayment in 5 years shall be given without any collateral with DIR interest rates up to Rs. 10 lakhs, Tanstia said.
Other measures suggested by the industry body includes that Sarfaesi Act should not be invoked to flood hit MSME units; loans upto Rs 10 lakhs should be given without any collateral; renewal of existing loans can be extended for one more year without any formalities; and exempting import duty for spares on machinery components including electronics.
MSME Ministry on Saturday visited the flood hit units in Chennai and Guindy and reviewed the situation. The Minister said that around 10,000 micro units, of which 95 per cent are into service sector, has been hit by the Chennai floods, while loss in terms of employment has been to the tune of 50,000 in the micro enterprises alone. (KNN Bureau)
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