TN CM takes steps to boost MSME sector hit by floods
Updated: Jan 15, 2016 01:44:28pm
Chennai Jan 15 (KNN) In an effort to provide a fillip to entrepreneurs from the Micro, Small and Medium Enterprise (MSME) sector hit by e trecent floods in Tamil Nadu, Chief Minister Jayalalithaa has unveiled many steps including loan moratorium, interest-free lendings and relaxation of norms for unemployed educated youth who are involved in self-employment ventures.
In an official release, she said that additional loans would be provided to repair and replace equipment, procure raw material and stock up inventory without new security. The time frame has also been increased to repay working capital loans, she added.
Flood-hit firms that have repaid loans as per schedule till December 31, 2015 would be exempted from penalty interest clause till they fully restart their ventures or till six months, whichever is earlier.
"I have ordered refurbishment of basic infrastructure in industrial estates under the Tamil Nadu Small Industries Development Corporation Limited at a cost of Rs 25 crore," she added.
The CM has also done away with the fee of replacement of electricity consumption meters affected in floods for MSMEs. The meter fee of Rs 26,000 for high tension consumers and Rs 3,500 for low tension users will be borne by Tamil Nadu Generation and Distribution Corporation.
In addition, the Chief Minister announced interest free loans upto Rs. 5000 for the small traders, hawkers selling flowers, fruits and vegetables along roadsides through cooperative banks. After repayment of such loans in 25 weeks, they would be provided the loan again with reduced interest rate of four per cent.
"The beneficiaries will be selected in special camps to be conducted by cooperative banks for ten days," the press release said.
As for unemployed educated youth in flood-hit districts, she ordered relaxation of 'training' norms to avail loans upto Rs five lakh with a 25 per cent capital subsidy to launch self-employment ventures under an ongoing state-scheme. (KNN Bureau)
In an official release, she said that additional loans would be provided to repair and replace equipment, procure raw material and stock up inventory without new security. The time frame has also been increased to repay working capital loans, she added.
Flood-hit firms that have repaid loans as per schedule till December 31, 2015 would be exempted from penalty interest clause till they fully restart their ventures or till six months, whichever is earlier.
"I have ordered refurbishment of basic infrastructure in industrial estates under the Tamil Nadu Small Industries Development Corporation Limited at a cost of Rs 25 crore," she added.
The CM has also done away with the fee of replacement of electricity consumption meters affected in floods for MSMEs. The meter fee of Rs 26,000 for high tension consumers and Rs 3,500 for low tension users will be borne by Tamil Nadu Generation and Distribution Corporation.
In addition, the Chief Minister announced interest free loans upto Rs. 5000 for the small traders, hawkers selling flowers, fruits and vegetables along roadsides through cooperative banks. After repayment of such loans in 25 weeks, they would be provided the loan again with reduced interest rate of four per cent.
"The beneficiaries will be selected in special camps to be conducted by cooperative banks for ten days," the press release said.
As for unemployed educated youth in flood-hit districts, she ordered relaxation of 'training' norms to avail loans upto Rs five lakh with a 25 per cent capital subsidy to launch self-employment ventures under an ongoing state-scheme. (KNN Bureau)
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