Tamil Nadu Government on March 1 announced a series of initiatives benefiting the micro, small and medium enterprises (MSMEs) that were badly affected by torrential rainfall in December last year.

Noting that her government had already announced welfare measures for MSME units affected by floods and heavy rainfall, Chief Minister Jayalalithaa said government would give three per cent subsidy to affected units besides waive electricity charges to those that did not operate due to flooding.

“Banks have restructured the loans to the affected MSME units. I have issued orders that from the interest to be paid to the loans, the Government will pay three per cent interest to the loans for a period of one year”, she said in a release.

“It will cost Rs 15 crore to the exchequer,” she said.

Similarly, Jayalalithaa said registration charges that were levied on the affected MSME units for getting loans would be returned.

“It will cost Rs five crore to the government”, she said.

Referring to her previous announcement that MSME units need not pay electricity charges to get meters for High Tension and Low Tension units, she said she had issued orders to the electricity board officials not to levy any electricity charges on units that did not operate due to flooding.

“Whenever the meter boxes get damaged it has been a practice to collect the previous electricity charges. However, due to flooding the MSME units did not make any production. Therefore, I have issued orders not to collect any charges from those companies which did not operate,” she said.

Chennai and neighbouring districts received excess rainfall in December 2015 in which several low lying areas were affected.

Many MSME units located at Ambattur and Guindy in the city were badly hit due to flooding.

Source: Business Standard