The havoc wreaked by the recent floods on industrial units, especially small, medium and tiny ones, is near complete in taluks like Paravur and Kunnathunadu. While industries organisations have appealed to the government for help for those units that are in dire straits, it will take a long time for the flood-ravaged units to stand on their feet.
Director of Kochi-based Institute of Small Enterprises Development P.M. Mathew said that beyond the rehabilitation phase, a lack of visibility might result in help not reaching marginal producers and workers. There is a vast ocean between enterprises on government radar, and those that are in operation in the tiny sector.
The marginal sector is vast in size. Therefore, any estimate confined to the registered MSME sector is not likely to truly reflect the pains of flood damages on the decentralised enterprise sector in the State. Under these circumstances, adoption of villages by corporates, including PSUs, banks, and insurance companies, under their social responsibility funds is an option. In fact, PSUs can lead the way and set an example for others to follow, he said.
This should also be treated as an opportunity to spread the culture of insurance.
The cost of insurance is not an attractive proposition for many small producers today. The government need to step in for breaking this barrier by stepping in to bear a part of the insurance cost for small and marginal enterprises, he said.
A former manager of the District Industries Centre B. Prasannakumar called for the government to step in to rehabilitate units. The first step is to identify the units that have been hit by the floods. A committee comprising stakeholders as well as bankers and Industries Department representatives should be constituted for the purpose. The State government can also call on the Union government to provide a part of the subsidy on interest that may be offered to the industrial units. GST reimbursement on the model of the earlier practice of providing sales tax subsidy can also be considered, he said.