Mudra Yojana, a new financial system launched by Center is likely to help financially the Chennai flood affected MSMEs. This was decided following the visit of MSME Minister Kalraj Mishra, who inspected flood affected industrial clusters housing MSMEs in the city. The recent flood in Chennai has created the biggest economic chaos in the last 100 years. The MSME sector, one of the biggest victims of the natural calamity has shaken the economy of the country, according to Mishra.
Earlier Finance Minister Arun Jaitley had visited Chennai for a discussion with Chief Minister of Tamil Nadu Jayalalithaa to assess the flood situation.
Talks are already on between the Center and the State Government with regard to extending loans under the Mudra Yojana. Efforts will be taken to provide financial assistance in the form of loans to flood affected MSMEs, officials said.
Mudra Yojana has been set up to offer financial assistance to non-corporate small business sector in the country. The insurance companies have received 11,000 claims from IT companies and other business establishments which suffered losses in the floods.
A team from New Delhi will visit Tamil Nadu soon to settle the remaining claims. Orders have been issued to complete all formalities within four weeks.
The MSME Minister visited industrial estates in Ambattur, Guindy. “This is a MSME hub. About 14 Thousand micro units have suffered losses, of which 95 per cent are service enterprises. Around 50 Thousand to 1 lakh people have lost their employment through this”, he said.
“The central government is ready to render any support for the SME sector and I will have a report prepared on this which will be presented to the Prime Minister.”, Mishra said.
