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Debt-ridden MSME sector looks towards govt. for sustenance

Welcoming the State Government's decision to waive farm loans, representatives of MSME sector in Tiruchi region have made a case for a similar gesture in the interests of several thousands of direct and indirect workers.

Sick MSME units in Tiruchi region that had been dependent on BHEL for decades find themselves in a piquant situation after the orders started declining for BHEL due to the Central Government's shift of focus for renewable energy.

Welcoming the State Government's decision to waive farm loans, representatives of MSME sector in Tiruchi region have made a case for a similar gesture in the interests of several thousands of direct and indirect workers.

Sick MSME units in Tiruchi region that had been dependent on BHEL for decades find themselves in a piquant situation after the orders started declining for BHEL due to the Central Government's shift of focus for renewable energy.

“What we expect is not waiver of the principal amount, but the interest and the interest on interest. As the COVID-19 pandemic has hit us hard, the State Government must take a special interest to effectively implement the interest-subvention schemes,” Rajappa Rajkumar, president of BHEL Small Industries' Association said.

“We have been trying hard for an appointment with the Chief Minister, but to no avail. There is little time left. The industries here can sustain only if the government takes a positive decision well before the code of conduct for the forthcoming Assembly polls takes effect,” he said.

Echoing a similar view, president of Tiruchi District Tiny and Small Industries' Association R. Ilango said the State Government could play an effective role for the survival of MSME sector by routing concessions through the District Industries Centres.

While the initiatives taken for start of new industries is laudable, the existing industries in Tiruchi region must be provided with the opportunities for diversification to suit the requirements of the Defence Corridor project, for which the SIPCOT plays a facilitating role.

Tiruchi being one of the five nodes for the Defence Corridor Project, the TIDITSSIA, BHELSIA and TREAT (Tiruchi Engineering and Technology Cluster) have been urging the Central and State governments to establish a local office to see through the transition of the manufacturing capabilities of the MSMEs, Mr. Ilango said.

A local office in each of the five nodes of defence corridor will be of immense use as the industries would know the type of skills required for the workforce and get prepared beforehand, Mr. Ilango said.