‘Micro units need financial support’

The Central and State governments should come out with schemes to extend financial support to micro units that do not have loan accounts with banks, said S. Surulivel, newly-elected vice-president of Tamil Nadu Small and Tiny Industries Association (TANSTIA). Representatives of the association plan to meet officials in the Central and State governments on this issue, he said.

The Union government had declared extension of the Emergency Credit Line Guarantee Scheme. However, even now the scheme did not benefit those who did not have loan accounts with banks. The scheme should be extended to all MSMEs, he said.

Another area of concern to the MSMEs was the frequent revision of raw material prices. Though job working units were getting orders, the hike in raw material prices was causing uncertainties. “How can we quote prices to take up job work as we are unsure of the raw material prices? A couple of days ago, the price of steel was increased by ₹3 and it is said that there will be another hike by ₹5 shortly. For MSMEs that take up job orders with public sector undertakings, the agreement is on an annual basis. We cannot do job work for a loss. We are unable to quote prices,” he said.

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