The number of affected employees could be more if the 3,000 small units and 1,000 medium-sized industries hit by the floods are also taken into consideration, he told news persons after visiting flood-affected areas in various industrial units and assessed the situation.
The affected units will require several months of lead time to recommence their operations, he said based on a detailed assessment report prepared by MSME-DI, Chennai.
The extent of loss suffered is difficult to assess immediately, he said.
Mishra had a detailed discussion with various MSME associations and banks.
The major issue that needs to be addressed is easy access to credit and possible restructuring of existing loans.
Issues relating to bank credit is within the administrative responsibility of the Finance Ministry and will be taken up with the Finance Minister Arun Jaitley, he said.
“The courage and enthusiasm shown by workers and entrepreneurs in this difficult time deserves appreciation and support. Chennai is the hub for MSMEs and it is important that the units revive quickly,” he said.
The Tamil Nadu Small & Tiny Industries Association told the Minister that for immediate rehabilitation of damaged micros and small units in the state, loans up to Rs. 5 lakh shall be waived; Excise Duty/Service Tax shall be waived for one year and ESI and Provident Fund payments shall be waived for one year.
Further, loans up to Rs. 10 lakh should be given without any collateral , the association said.
Since most of the units have lost documents and other business-related information, they are not in a position to fulfill the formalities by bank for requirement of existing loans.
Hence, renewal of existing loans can be extended for one more year without any formalities, the association said.
Source: Business Line
Image Courtesy : The Hindu Business Line