Micro units turn to different sources for financial needs

Chandran (name changed), a micro unit owner for nearly two decades, employs six workers to run lathes, making spares for pumpsets. Recently, he had sold jewellery to pay wages to workers and electrici

Chandran (name changed), a micro unit owner for nearly two decades, employs six workers to run lathes, making spares for pumpsets. Recently, he had sold jewellery to pay wages to workers and electricity charges. He had to shell out at least ₹ 50,000 a month towards wages, pay electricity charges, and rent even if the unit is closed for lockdown. “Last year, during the two month lockdown, the micro units suffered losses and had to sell some jewels to meet the expenses. When the lockdown was lifted, the orders picked up only gradually. With lockdown again this year, I had sold the remaining jewels and also taken an advance from a scrap dealer,” he says. The private finance companies are not willing to lend as there is no collateral to give. Banks do not give much support to the micro units. So, the unit owners approach different sources and take an advance amount or sell or pledge jewels, he says. Though Coimbatore district is under lockdown till June 21, the units are paying electricity charges with penalty since June 15. “We need to meet the family expenses too. There is absolutely no help from the Central government. The Electricity Board is collecting charges with penalty. There is no relief of any kind for these units,” he says.