T N power crisis:Industry seeks relief from banks

Coimbatore, June 21 (KNN) Coimbatore District Small Industries Association (CODISIA), a local industry body in Tamil Nadu has sought Exim Bank’s intervention in asking for concessions like rescheduling of loans by banks as the state is reeling under power crisis .   

Reacting to reports on RBI instructing banks in Andhra Pradesh to extend help to industries hit by power crisis, CODISIA  said earlier this week that the step has brought new hope to MSMEs in the state, which have been crippled due to severe power shortage over the last two years. The units in Tamil Nadu should also  receive similar interim relief with centre's support, media reports quoting the CODISIA said. 

The small industries in the southern states are facing acute power crisis resulting in loss of production. In Coimbatore alone, the crisis has resulted in about 60 per cent production loss and consequent loss of employment to a large number of workforces due to job cuts in small industries, according to the report. 
 

CODISSIA and other industrial associations had made several representations to RBI suggesting interim relief for MSMEs of the region.

 The association asked RBI to allow a one-year moratorium on repayment of loan instalments and interest, by which time the power situation will improve and MSMEs will be able to work on normal conditions. (KNN)