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Reconsider rehab packages for industries: IEMA

KV Kanakambaram, president of the Industrial Estate Manufacturers Association told Express that most of the MSME or tiny units are running without bank assistance.

Published: 26th May 2021 04:50 AM  |   Last Updated: 26th May 2021 04:50 AM   |  A+A-

MSMEs

Image for representational purpose

By Express News Service

CHENNAI: The Industrial Estate Manufacturers Association has urged Chief Minister MK Stalin to re-think rehabilitation packages for sick and non performing asset (NPA) units to protect livelihoods and industries.

KV Kanakambaram, president of the Industrial Estate Manufacturers Association told Express that most of the MSME or tiny units are running without bank assistance. The micro units are not eligible for government help through Emergency Credit Line Guarantee Scheme (ECLGS) or any other schemes.

He added that during the pandemic, some bankers are issuing possession notice and urged the CM to take necessary steps to stop the auction proceedings till the situation normalises and arrange re-opening of sick NPA units.

Stating that former Chief Minister M Karunanidhi was a great supporter of the MSME movement, he urged Stalin to appoint a strong and dynamic official to head MSME department who understands the problems of the sector and who can help  overcome this pandemic. He also urged the Chief minister to set  up a high level committee towards development of industries, particularly MSME Sector.  

Meanwhile, Industrial Estate Manufacturers Association (IEMA) wrote to Union Finance Minister Nirmala Sitharaman to instruct the RBI and banks not to impose NPA norms for the units in the MSME sector for a period of two years and help the units by giving additional package to restructure.

IEMA also urged the government to instruct the RBI and all banks to announce financial packages for MSME sectors with a long repayment period of 60 months at attractive interest rate of 7 per cent for the MSME sector for all types of loans since all these loans have been given by taking sufficient collateral from the entrepreneurs.



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