Industry associations representing micro, small and medium enterprises from the flood-hit areas in Tamil Nadu lamented the continued delay in disbursement of financial support from the government, banks and insurance companies.

At an interactive session organised by the Southern India Chamber of Commerce and Industry, they said more than a month after the floods inundated northern parts of Tamil Nadu, including Chennai and neighbouring districts of Thiruvallur, Kanchipuram, industrial units are struggling to restart. The promised bank support and fast insurance claim disbursements are yet to happen, they say.

Palani G Periasamy, President, SICCI, said over 10,000 units in Chennai, a hub for MSME sector, have been damaged and over 50,000 jobs lost following the floods during the first week of December last year. The leather sector lost about Rs. 380 crore, gold and jewellery Rs. 237 crore, auto components Rs. 105 crore and printing Rs. 37 crore.

Rafeeque Ahmed, Vice-President, SICCI, and Chairman, Farida group, a leading exporter of footwear, said the MSME sector has been hit at a critical juncture in the context of an overall economic slowdown. If supplies from Indian units falter, large international buyers will cancel orders. Chinese exporters too are keen on grabbing every export opportunity in the backdrop of a fall in domestic demand and devaluation of Chinese currency which make exports attractive.

CM Mohan, Vice-President, Tamil Nadu Small and Tiny Industries Association, said more than a month after the flood waters have receded insurance claims are yet to be settled and banks are waiting for clearances from their headquarters. CV Sankar, Tamil Nadu Industries Secretary, said the government will expedite the support measures. The government had focused on immediate rescue and relief measures.

Source: Business Line