TANSTIA submits suggestions to MSME Minister for revival of flood-hit units
Updated: Dec 21, 2015 03:03:35pm
Chennai, Dec 21 (KNN) Tamil Nadu Small and Tiny Industries Association (TANSTIA), in a meeting with the Union MSME Minister Kalraj Mishra, has 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.
Tastia President C Muthusami told KNN that he has submitted a letter to the MSME Minister suggesting 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 Minister 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)
Tastia President C Muthusami told KNN that he has submitted a letter to the MSME Minister suggesting 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 Minister 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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