Tamil Nadu government on Wednesday announced signing of two Memorandum of Understandings (MoUs) to implement industrial infrastructure initiatives and co-lending to support MSMEs.

The Tamil Nadu Industrial Investment Corporation Ltd (TIIC), which has been providing financial assistance to MSMEs, signed agreements with Tansidco and TAICO Bank on December 8 in the presence of Thangam Thennarasu, Minister for Industries & Tamil Culture and T M Anbarasan, Minister for MSME & Slum Clearance.

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The pact with Tansidco (Tamil Nadu Small Industries Development Corporation) is for smooth implementation of the Industrial Infrastructure Initiative Scheme of TIIC, while the partnership with TAICO Bank (Tamilnadu Industrial Co-op Bank Ltd) is to undertake co-lending activities to support the MSMEs.

TIIC has introduced “Industrial Infrastructure Initiative Scheme” with the objective of providing financial assistance to MSMEs to purchase plots in Sipcot and Tansidco industrial estates to set up their units.

Interim loan

The interim loan provided under this scheme enables the MSME units to get their at the plots earliest so that they may start their commercial operations without any delay, based on the first MoU.

Seamless availability of working capital propels the MSMEs to grow and scale up thereby ensuring their viability, besides providing them with a liquidity cushion to carry out their operations.

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To support the MSMEs in the State with sufficient working capital and to effectively harness the synergies of both the organisations — TAICO Bank and TIIC — in nurturing the MSME ecosystem in the State, TIIC and TAICO Bank have decided to enter into a Memorandum of Understanding for co-lending activities to facilitate the MSMEs in the State in getting working capital along with term loans for fixed asset creation.

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