Coimbatore: Entrepreneurs have requested Diwali special loan of Rs. 1 lakh to small and micro enterprises. They have urged the central and state governments to provide special Diwali loans to help small and micro enterprises.
Coimbatore: Entrepreneurs have requested Diwali special loan of Rs. 1 lakh to small and micro enterprises. They have urged the central and state governments to provide special Diwali loans to help small and micro enterprises.
There are over 1 lakh 50 thousand small, medium and large enterprises operating in Coimbatore district. About 60 per cent of the factories, such as foundries, textiles, power looms, wet grinders, pumps and plastics, are located in rural areas and 40 per cent in urban areas.
There are about 325 large enterprises around the rural areas and about 100 large enterprises in the corporation limits that employ about 5 lakh workers. There are about 15,000 to 20,000 small and micro entrepreneurs. More than 1 lakh workers are employed in their industries. Small businesses rely mainly on sub orders that include manufacturing of parts for the automobile industry, pump set components and machinery for the textile industry.
These industries are completely paralyzed after the coronavirus lockdown. Meanwhile, Diwali is to be celebrated across the country on the 14th. Small and micro enterprises are in a very precarious situation due to the lack of sufficient funds to pay the workers, including bonuses. In view of this, the entrepreneurs have demanded that the Central and State Governments should immediately provide special loans of Rs. 50,000 to Rs. 1 lakh to small and micro enterprises.
Maniraj, president of the Coimbatore District Pumpset and Parts Manufacturers' Association, said, "After the Coronavirus we have just started our business again. Coronavirus term special loans were announced but 20 percent of them were lent based on the budget already borrowed. Only large companies benefited from this." He added that "Small and micro enterprises often have no credit in the banks.
Due to this, coronavirus term special loans are often not available to them and even those who get them, receive only meagre loans. AsDiwali is approaching, small and micro enterprises are suffering without money for paying salaries, bonuses and building rent. The central and state governments should immediately provide them with a special Diwali loan of Rs 50,000 to Rs 1 lakh."
Sivakumar, president of the Coimbatore-Tiruppur District Rural Entrepreneurs' Association (COTMA), said the coronavirus special loan was given to those on the basis of existing loans from banks, but credit is often not available to those who run a business without a loan. To cater to the needs of businesses, Mudra loans should be provided in view of Diwali. Running a business is a big challenge because of the pandemic. Entrepreneurs are taking loans from private lending institutions without getting loans from banks. These special loans will help them recover from this."
Tamil Nadu Industrial and Micro Entrepreneurs Association Coimbatore District (TACT) President James said, "About 400 applications were submitted to the banks through the Coimbatore District Collector for special loans to small and micro enterprises during the Coronavirus period, but most of those entrepreneurs have not been given loans till now. Entrepreneurs are in a very precarious situation with no way to even pay rents. The Tamil Nadu government should immediately provide special Diwali loans of up to Rs 1 lakh to all small entrepreneurs."
There are over 1 lakh 50 thousand small, medium and large enterprises operating in Coimbatore district. About 60 per cent of the factories, such as foundries, textiles, power looms, wet grinders, pumps and plastics, are located in rural areas and 40 per cent in urban areas.
There are about 325 large enterprises around the rural areas and about 100 large enterprises in the corporation limits that employ about 5 lakh workers. There are about 15,000 to 20,000 small and micro entrepreneurs. More than 1 lakh workers are employed in their industries. Small businesses rely mainly on sub orders that include manufacturing of parts for the automobile industry, pump set components and machinery for the textile industry.
These industries are completely paralyzed after the coronavirus lockdown. Meanwhile, Diwali is to be celebrated across the country on the 14th. Small and micro enterprises are in a very precarious situation due to the lack of sufficient funds to pay the workers, including bonuses. In view of this, the entrepreneurs have demanded that the Central and State Governments should immediately provide special loans of Rs. 50,000 to Rs. 1 lakh to small and micro enterprises.
Maniraj, president of the Coimbatore District Pumpset and Parts Manufacturers' Association, said, "After the Coronavirus we have just started our business again. Coronavirus term special loans were announced but 20 percent of them were lent based on the budget already borrowed. Only large companies benefited from this." He added that "Small and micro enterprises often have no credit in the banks.
Due to this, coronavirus term special loans are often not available to them and even those who get them, receive only meagre loans. AsDiwali is approaching, small and micro enterprises are suffering without money for paying salaries, bonuses and building rent. The central and state governments should immediately provide them with a special Diwali loan of Rs 50,000 to Rs 1 lakh."
Sivakumar, president of the Coimbatore-Tiruppur District Rural Entrepreneurs' Association (COTMA), said the coronavirus special loan was given to those on the basis of existing loans from banks, but credit is often not available to those who run a business without a loan. To cater to the needs of businesses, Mudra loans should be provided in view of Diwali. Running a business is a big challenge because of the pandemic. Entrepreneurs are taking loans from private lending institutions without getting loans from banks. These special loans will help them recover from this."
Tamil Nadu Industrial and Micro Entrepreneurs Association Coimbatore District (TACT) President James said, "About 400 applications were submitted to the banks through the Coimbatore District Collector for special loans to small and micro enterprises during the Coronavirus period, but most of those entrepreneurs have not been given loans till now. Entrepreneurs are in a very precarious situation with no way to even pay rents. The Tamil Nadu government should immediately provide special Diwali loans of up to Rs 1 lakh to all small entrepreneurs."