Tamil Nadu   

`Restore subsidies to entrepreneurs not covered by NAMT'

By Our Special Correspondent

CHENNAI, MAY 27. The South India Women Entrepreneurs Association (SIWEA) has appealed to the State Government to restore capital subsidies to entrepreneurs who do not fall under the purview of the New Anna Marumalarchi Thittam (NAMT), which covers only the food processing and agro-industry sectors.

In a statement, the State president, G.Chandrakantha, said lakhs benefited from subsidies granted earlier to entrepreneurs, who launched units in backward and the most backward blocks and employed 30 per cent of women in their workforce. Subsidies were also given for electronics, computers and solar cookers. However, in recent years, all such subsidies were stopped and funds diverted to enterprises under the NAMT and women self-help groups (SHGs).

Not even ten per cent of the SHGs, which obtained financial assistance to start enterprises, started their units, she alleged. Therefore, all subsidies should be restored to enterprises as per the earlier policy. Loans should be given to SHGs only in the form of machinery, as cash advances did not ensure that units were actually started.

Ms. Chandrakantha protested against the reduction of the permitted overdue period of loan repayment instalments for small industries from nine months before 1990 to six months in 2003 and three months now by the Reserve Bank. Small units, facing difficulties as a result of globalisation, the increase in price of raw materials and unstable market conditions, would not be able to survive unless the grace period was raised at least to six months. Moreover, SSIs, whose bills were settled by large units, public sector undertakings and government undertakings only after six months, could not be expected to repay their principal and interest dues within 90 days.

The association president expressed concern at the tendency of public sector banks to entrust dues recovery to private agencies, which harassed borrower-entrepreneurs with highhandedness and humiliating treatment. This would also discourage would-be entrepreneurs.

The government and the RBI should review the banks' policy and issue appropriate guidelines.

In view of the refusal of owners of buildings in State capitals and big cities to give their premises on rent to entrepreneurs, the Tamil Nadu State Industrial Development Corporation should start mini-industrial estates and multistorey facilities and rent out small sheds to entrepreneurs, she said.

Printer friendly page  
Send this article to Friends by E-Mail

Tamil Nadu

News: Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts: Classifieds | Employment | Updates: Breaking News |

Stories in this Section

• Top ranks go to Thanjavur and Madurai in SSLC, matriculation
• Systematic efforts paid off: Thanjavur CEO
• Back home but `it is no cause for joy'
• TVS school wins top 3 ranks in Matriculation
• Special supplementary examination from June 30
• Keen on following in his father's footsteps
• Meet to discuss plea for holding CET for management quota seats
• Maran welcomes declaration of Tamil as classical language
• `Restore subsidies to entrepreneurs not covered by NAMT'
• Rain in Tiruchi, Ramnad districts
• The top rank holders
• Study on road safety policy under way
• Government schools do well in Villupuram
• Briefly

Copyright © 2004, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu