Tamil Nadu - Coimbatore   

Wetgrinder units look to CGTSI for assistance

Staff Reporter

Guarantee for loan; similar to insurance cover

COIMBATORE: Some of the wetgrinder units here plan to take assistance from the Credit Guarantee Trust for Small Industries.

A Small Industries Service Institute official said that the Trust provides guarantee to the loan extended by banks to small-scale industries (SSIs) and is similar to an insurance cover.

Thus, SSIs that avail themselves of assistance from the trust need not provide collateral security to the banks for loans.

A number of small-scale industries here had already made use of this facility and now the wetgrinder manufacturers also planned to seek assistance under this. The official explained that in case a unit was interested, then the respective firm, bank and the Trust would enter into an agreement.

The Trust representatives held discussions with the wetgrinder manufacturers here in this regard recently.

The wetgrinder units were expecting the State Government's sanction soon for land and assistance to set up a common facility centre. The centre had already sent its sanction letter and the State Government would provide land and assistance for building construction.

The Coimbatore Wet Grinder and Accessories Manufacturers' Association had sought 40 cents to set up the facilities.

The association was also in the process of registering a special purpose vehicle to implement this project. The Centre would disburse a grant of Rs. 99 lakhs in phases for the proposed project. This would be used to purchase machinery.

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