FOCIA appeals to TN Chief Minister to defer current loans of small businesses for a period of 6 months
Coimbatore: FOCIA has requested the Chief Minister of Tamil Nadu, M K Stalin to postpone the current loan installments of small businesses for a period of six months.
According to a statement issued by FOCIA, "Only factories producing essential commodities have been allowed to operate in Tamil Nadu during the entire curfew which has been extended till May 21. Although such businesses are allowed to operate spare parts or other small businesses, the shops selling work tools and inputs are closed. Small businesses could not function because workers were barred from riding on two-wheelers. All the big factories are operational.
However, 99 percent of small businesses are closed. In states like Gujarat and Maharashtra, factories have not been closed despite a full lockdown. The loss of market in Coimbatore will be further extended by the closure of motors, pump sets, compressors, railway equipment and small industrial roads that make up the entire equipment. Tamil Nadu will be pushed back in terms of industrial growth."
FOCIA further added in the statement that, "To date, no assistance scheme has been announced for small businesses that have not yet received any loans, despite last year's Covid impact. Small businesses which received 20 percent of the new loans under the ECLGS scheme, have been suffering from a rise in prices of all raw materials, all of which they have borrowed since last September. Small businesses have not been able to expand or recover from their loss for the past 2 years.
When there is no help from the Government for small businesses, the workers who depend on those businesses are also suffering. Continuity of work is affected as factory works are stopped. Entrepreneurs are left without the motivation and confidence to do business. It takes many months to repair this mental loss. We would like to express our heartfelt gratitude to the Chief Minister of Tamil Nadu for urging the Central Government to announce a new financial assistance scheme for small businesses. He has been announcing various special people's projects and has put forward the demands to them."
"Despite the complete curfew, Gujarat which is advanced in industrial development should be allowed to operate small businesses and industrial shops like Maharashtra. In all Tamil Nadu government curfew notices, workers have been instructed to vaccinate within a month. Therefore, employees of small businesses should be given priority in vaccination. Industry organizations should prescribe the vaccine when organizing the vaccination camp. Importantly, the Central Government should be urged to announce a personal plan for small and micro enterprises that have not yet received any loan assistance.
Companies that have not yet received a loan should be given a loan of at least Rs.1,00,000 lakh per annum without any interest. Current loan installments of small businesses should be deferred for at least six months. The Reserve Bank has now recommended to the banks to provide a further 10 percent new loan amount under the ECLGS scheme. But this new loan will only be given upto Rs. 46,000 crore which is not enough for all the Tamils who got 20 percent loan last year to get this 10 per cent loan.
According to the Reserve Bank of India, the allocation should be at least Rs 1.27 lakh crore. Small and micro enterprises have not been operational for 42 days. Therefore, exemption from electricity bills for at least two months should be granted. We humbly request the Chief Minister of Tamil Nadu to fulfill the above demands,” stated FOCIA.
According to a statement issued by FOCIA, "Only factories producing essential commodities have been allowed to operate in Tamil Nadu during the entire curfew which has been extended till May 21. Although such businesses are allowed to operate spare parts or other small businesses, the shops selling work tools and inputs are closed. Small businesses could not function because workers were barred from riding on two-wheelers. All the big factories are operational.
However, 99 percent of small businesses are closed. In states like Gujarat and Maharashtra, factories have not been closed despite a full lockdown. The loss of market in Coimbatore will be further extended by the closure of motors, pump sets, compressors, railway equipment and small industrial roads that make up the entire equipment. Tamil Nadu will be pushed back in terms of industrial growth."
FOCIA further added in the statement that, "To date, no assistance scheme has been announced for small businesses that have not yet received any loans, despite last year's Covid impact. Small businesses which received 20 percent of the new loans under the ECLGS scheme, have been suffering from a rise in prices of all raw materials, all of which they have borrowed since last September. Small businesses have not been able to expand or recover from their loss for the past 2 years.
When there is no help from the Government for small businesses, the workers who depend on those businesses are also suffering. Continuity of work is affected as factory works are stopped. Entrepreneurs are left without the motivation and confidence to do business. It takes many months to repair this mental loss. We would like to express our heartfelt gratitude to the Chief Minister of Tamil Nadu for urging the Central Government to announce a new financial assistance scheme for small businesses. He has been announcing various special people's projects and has put forward the demands to them."
"Despite the complete curfew, Gujarat which is advanced in industrial development should be allowed to operate small businesses and industrial shops like Maharashtra. In all Tamil Nadu government curfew notices, workers have been instructed to vaccinate within a month. Therefore, employees of small businesses should be given priority in vaccination. Industry organizations should prescribe the vaccine when organizing the vaccination camp. Importantly, the Central Government should be urged to announce a personal plan for small and micro enterprises that have not yet received any loan assistance.
Companies that have not yet received a loan should be given a loan of at least Rs.1,00,000 lakh per annum without any interest. Current loan installments of small businesses should be deferred for at least six months. The Reserve Bank has now recommended to the banks to provide a further 10 percent new loan amount under the ECLGS scheme. But this new loan will only be given upto Rs. 46,000 crore which is not enough for all the Tamils who got 20 percent loan last year to get this 10 per cent loan.
According to the Reserve Bank of India, the allocation should be at least Rs 1.27 lakh crore. Small and micro enterprises have not been operational for 42 days. Therefore, exemption from electricity bills for at least two months should be granted. We humbly request the Chief Minister of Tamil Nadu to fulfill the above demands,” stated FOCIA.