Relief measures for MSMEs are inadequate: Associations

Our Bureau Chennai | Updated on August 13, 2021

The MSME sector felt that the measures in the State budget 2021-22 were inadequate, particularly for the self-employed category, which has not been covered under the stimulus package of the Central government.

“We had requested for a loan equivalent to six months’ EMI without interest so that those who are unable to pay EMI can avail the same. Also, to supply raw materials at fair price to MSME units and a stipend of ₹6,000 per month for six months to fresh graduates to undergo training and gain employable skills, said KE Raghunathan, Convenor of Consortium of Indian Associations.

While the reliefs announced are very similar to what is being done from the Centre, there is no special mention for the suffering MSMEs, he added.

MSME support

In his budget speech, Tamil Nadu Finance Palanivel Thiaga Rajan mentioned a committee chaired by N Sundaradevan, IAS (Retd) has been established to study the financial, infrastructural and other issues faced by MSMEs and suggest measures to support them.

The State government will also launch a State Level Credit Guarantee Scheme to enable more MSMEs, particularly micro enterprises, to access credit. A digital data driven credit rating system for MSMEs will be established to enable FIs and new age fintech companies to lend more to MSMEs based on their business potential. TAICO Bank will be repurposed to enable lending to MSMEs. The Government will handhold MSMEs which want to raise equity capital and the cost of listing, up to ₹30 lakh will be borne by the Government.

The Government, based on advice received from the Economic Advisory Council to the Chief Minister, will launch an innovative scheme wherein MSMEs and their creditors, will be facilitated to restructure liabilities

To ensure that MSMEs have faster channels for realisation of their dues, all State Public Sector Undertakings, Statutory Boards, Municipal Corporations and apex co-operatives will be mandated to join the trade receivables and discounting platform (TReDS). Meanwhile, TANSIDCO will establish land banks at five places over a total extent of 265 acres. The pricing policy of unsold plots in its 61 Industrial Parks will be rationalised to ensure they are put to beneficial use early.

Published on August 13, 2021

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