Chennai, Dec 11 (KNN) The micro, small and medium enterprises (MSMEs) which have incurred huge losses due to devastating rains in the regions, have urged the government to extend sops and give some relief to them for rehabilitation.

“Due to heavy rains during last week, all the micro and small units situated in the industrial areas of Tamil Nadu are damaged badly and the MSE units are not able to continue their industrial activities further,” said Tamil Nadu Small and Tiny Industries Association (Tanstia).

The industry body, on Thursday, held a meeting with the state MSME department which was attended by the Rural Industries Minister P Mohan.
During the meeting, Tanstia President, Muthusami C, submitted a list of suggestions to the government for immediate rehabilitation of Micro and Small Units in the state.

Tanstia urged the government to waive of the loans up to Rs 10 lakh for the MSEs.

“The MSEs to start their industries should be provided Rs 5 lakhs interest free loans allowing to repay the loans after six months’ time,” suggested Muthusami.

Tanstia also said that the time frame for all statutory payments like ESI, PF, Service Tax and more should be extended up to six months. After six months, the MSEs should be allowed the repay the loans in 10 instalments without any interest and penalty.

The micro and small units have urged the government not to impose Sarfaesi Act for the NPAs.

The other demands made by the MSME sector includes -  waiving off of term loan up to March 2016; providing term loan to purchase machinery; MSEs should be provided relief after inspecting MSME (Part-II) certificate.

The industry bodies have pegged a loss of more than Rs 1000 crore to the MSMEs due to heavy rains recently. (KNN Bureau)