Cyclone Michaung | MSMEs in Chennai seek time to repay loans, electricity charges

MSMEs need time to pay electricity charges & moratorium on loans. TN govt should include losses in relief fund & find permanent solution for estates. Tangedco has given time till Dec 18, & human chain protest planned for Dec 12 now on Dec 27. #MSMEs #TNGovt #Tangedco #ElectricityCharges #Moratorium #ReliefFund

Micro, Small and Medium-scale Enterprises (MSMEs) need time to pay their electricity charges due this month, and also want a moratorium of three to six months to repay their loans, said C.K. Mohan, vice president, Chennai District MSME Association.

S. Vasudevan, vice president of the Tamil Nadu Small and Tiny Industries Association, and Mr. Mohan, along with coordinators of the Tamil Nadu Industrial Electricity Consumers Association, told presspersons in Coimbatore on Friday, December 8, 2023, that several MSMEs at the industrial estates in Chennai were yet to resume operations. At the Vichoor Industrial Estate, of the 110 units, nearly 30 were totally submerged in water. Machinery worth several lakhs has been damaged. While the units that had insurance cover will get some relief, the others have suffered heavy losses, they pointed out.

The State government should include the losses suffered by the MSMEs in the relief fund sought from the Central government. The Centre should include the MSMEs under the National Disaster Relief Fund. “The government should find a permanent solution for estates such as Vichoor, so that the MSMEs are not affected by rainwater flooding,” Mr. Mohan said.

The Chief Secretary should hold talks with with the insurance companies to ensure that MSMEs get the complete insured amount, without conditions. The Chief Secretary should also hold talks with banks so that units in the four districts, covering Chennai and nearby districts, get time to repay their loans, he said.

Tangedco has given time till December 18 for MSMEs to pay their monthly dues. The units are yet to resume operations and hence they need more time, he said.

J. James, co-ordinator of the electricity consumers association, said the human chain protest planned across the State on December 12 on the demands of MSMEs related to electricity charges, will now be held on December 27.