Coimbatore: Industrial associations in the district have appealed finance minister Nirmala Sitharaman to direct banks to extend the moratorium on term loan by another one year to June 30, 2022.
With the one-year moratorium period that was announced last year coming to an end, they said many industrial players, who are crippled by the hike in raw material price, wouldn’t be able to repay their term loans.
They wrote to the finance minister on Thursday, stating the micro, small and medium enterprises (MSMEs) were only recovering from the impact of last year’s lockdown and heavily hit by the unprecedented and abnormal increase in prices of raw materials by 70%. They said the second wave of Covid-19 had also affected them.
Lockdown hits activities at MSMEs
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Total lockdown has led to work from home option catching on in IT, ITES and even a number of corporate companies. However, for the Micro, Small and Medium-scale Enterprises (MSMEs) in the manufacturing sector, all activities have come to a standstill.
According to K.V. Karthik, president of Southern India Engineering Manufacturers’ Association, there is less than 5 % administration work at MSMEs in the manufacturing sector. If there is no revenue generating activity, there is no income. Hence, there is nothing much that can be done by the staff from home. Work from home option cannot apply to manufacturing units, he said.
Industries to remain shut for a week in Coimbatore
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Almost all industries in Coimbatore and Tiruppur districts will remain shut for one week from Monday because of complete lockdown in the State to control the pandemic.
Just about 10 % of MSMEs in Coimbatore are in essential and healthcare sectors and only these will operate, said M.V. Ramesh Babu, president of Coimbatore District Small Industries Association. While the foundries in the MSME sector will not operate, the larger foundries are expected to decide individually.
Spinning mills will not function as the government had not given permission even to those units that house the workers on the premises. Garment exporting units will also remain closed.
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