Rs 2,000 crore relief sought for MSMEs in TN

D Govardan | TNN | Apr 30, 2020, 07:17 IST

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CHENNAI: The Southern India Chamber of Commerce and Industry (SICCI) on Wednesday urged Union finance minister Nirmala Sitharaman to offer a Rs 2,000 crore ‘relief window’ to help MSMEs in Tamil Nadu.
“Tamil Nadu is the MSME engine of India and a big portion of the state’s workforce is committed to this sector. The MSME sector in Tamil Nadu went into this crisis from a low and is struggling for its survival,” said R Ganapathi, president, SICCI.
“State investment agencies like Tidco, Sipcot, Sidco and TIIC may be permitted to support the small industries in the state through a special window that could be created by SIDBI with a refinance option with Reserve Bank of India with a back stop,” Ganapathi said in his letter to Nirmala Sitharaman. “At least Rs 2,000 crore needs to be set aside on soft terms for the revival of the industry,” he said.
SICCI drew the minister’s attention on the need to create a “special startup fund” for IIT Research Park. Ganapathi requested the minister to set aside Rs 25 crore for the special startup fund and help IIT Tech Park survive this crisis.