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06/08/2020 12:54pm

Coimbatore MSMEs implore Tamil Nadu CM to relax lockdown restrictions, fulfil promise of interest subvention

image Coimbatore MSMEs implore Tamil Nadu CM to relax lockdown restrictions, fulfil promise of interest subvention

Coimbatore, Aug 6 (KNN) In a bid to revive themselves in the current COVID-19 situation,  Micro, Small and Medium Enterprises (MSMEs) in Coimbatore have implored Tamil Nadu Chief Minister Edappadi Karuppa Palaniswami to relax lockdown restrictions. 

In this regard, the Federation of Coimbatore Industrial Associations (FCIA) has written to Palaniswami and the District Collector where it has sought relaxations in lockdown restrictions, exemptions from e-passes and 2 per cent interest subvention for MSMEs as announced in 2018.

''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,'' the federation said in its letter.

The federation has also apprised the government that due to suspension of bus and rail services, workers are facing difficulties in returning to Coimbatore for work from other districts and states, and this affects production.

Apart from seeking exemption of MSMEs from total lockdown, the federation also suggested the government to 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 federation said.

The federation also said that in 2018, the Prime Minister Narendra Modi had announced a 2 per cent interest subvention scheme for MSMEs. 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 Rs 2.83 lakh benefit for Rs 1 crore loan.

''The banks are reimbursed by Small Industries Development Bank of India (SIDBI) for the benefit extended to the MSMEs. However, several banks have not passed on the benefit to the MSMEs,'' FCIA added.

While demanding dedicated officers to look after the scheme, FCIA also urged collector to intervene and ensure that the MSMEs get the 2 per cent benefit.


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