Chennai floods cause 50,000 job losses in MSME sector: Centre

Posted By: PTI
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Chennai, Dec 19: The devastating floods that hit several parts of Chennai and nearby areas early this month have left 50,000 people unemployed in the micro, small and medium enterprises industry in the city, MSME Minister Kalraj Mishra said today. "Chennai is the MSME hub.

About 10,000 micro units have suffered losses, of which 95 per cent are service enterprises. The loss in terms of employment is to the tune of 50,000 in the micro enterprises alone," the minister said. Mishra said the impact of losses due to floods is being prepared and a detailed assessment report was being prepared. "Tomorrow Finance Minister Arun Jaitley is visiting the flood-affected areas.

Chennai floods cause 50,000 job losses

After that we will present the report to his Ministry to take further steps," he said. The MSME minister was speaking after visiting various units in flood-affected areas and industry representatives.

Mishra said he had also discussed the issue with BJP leader and Minister of State for Transport and Highways Pon Radhakrishnan. Observing that the affected industries would take several months to resume operations, he said the major issue that needs to be addressed was easy access to bank credit and possible restructuring of existing loans.

"The issues relating to bank credit will be taken up with the Finance Minister," he said. He assured his Ministry's support to the state government in reviving affected MSME units. Tamil Nadu Small and Tiny Industries Association officials, who were present during the discussions, requested the Ministry for waiver of loans of up to Rs 5 lakh. They also sought one year waiver of excise duty and service tax.


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