MSMEs request Govt. for two months time to pay pending electricity bills due to Covid-19 impact

Coimbatore: The spinning industry in Coimbatore district has urged the Tamil Nadu Government to take action to cancel the 'Demand Charge' and to save Micro, Small and Medium Enterprises (MSMEs) that are suffering from severe financial crisis due to the inactivity of the industry for over a month, as well as to grant them time of two months to clear their electricity bills.

Jayapal, President of the Tamil Nadu Open End Spinning Mills Association (OSMA) said, 'MSMEs in 11 districts in Tamil Nadu, including Coimbatore, Tirupur and Erode which have not been granted lockdown relaxations are struggling. The work is being carried out at open spinning mills, most of which employ north indian migrant workers. The lockdown has been enforced since May 10 when the second wave of Covid-19 hit the industry hard. Even before the lockdown was imposed in Tamil Nadu, curfews had been imposed in many northern states, including Maharashtra, Delhi and Gujarat. It is not fair to force the owner to pay the electricity bill if the mills have been inactive for more than a month. The district administration, on behalf of the Government, has provided assistance, including providing shelter and food for the workers during the first wave of Covid-19, and providing them with train facilities to return to their hometowns.'

'But at the second outbreak of the disease, the assistance granted by the Government as in the past has not been provided. Till date, all activities, including arranging special camps to keep the mill workers safe, feed them and vaccinate them are being carried out on behalf of the mill owners, and all are facing an additional financial burden. All MSMEs in the 11 districts where the relaxations are not granted, have been shut down, and yet are currently paying half of the worker's wages to protect them. But if this situation continues, millions of workers' livelihoods will be severely affected in the coming months, and the Tamil Nadu government must take action to meet the legitimate demands of the industry over electricity tariffs,' said Jayapal.

Venkatesh, Secretary of the South Indian Spinners' Association (SISPA) said, 'More than 40 percent of our union members are high tension (HT) consumers. It is very unfortunate that a 'demand charge' has been levied on high voltage consumers in the last one month since the curfew was imposed. Demand charge means that every mill management will have to pay millions. Mill owners who are already suffering from a severe financial crisis are struggling to protect and retain workers in such an environment. Cancel the 'demand charge' for HT consumers and give them at least a month to pay the electricity bill for the application.'

James, District President, Tamil Nadu Association of Industrial and Rural Entrepreneurs (TACT), said, The second wave of Covid-19 has pushed the industry into a crisis as the MSMEs have not recovered from the impact of the first wave of the disease. With the growing financial crisis, it is depressing that the Government has said it will not waive the payment of electricity bills in such a situation. We request the Government to waive the charges or to provide two months time for payment. We hope the Government of Tamil Nadu will meet the legitimate demands of entrepreneurs,' he added.