The Hindu : Front Page : Micro units in need of financial help

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Thursday, Mar 12, 2009
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Micro units in need of financial help

M. Soundariya Preetha

COIMBATORE: Many micro units here that are members of the Tamil Nadu Association for Cottage and Micro Enterprises have written to the association that they are on the verge of closure owing to economic slowdown, financial crunch and power shortage.

The association now plans to identify about 200 units that are in need of assistance immediately. It will work with the lead bank and the District Industries Centre and try to arrange loans of Rs. 25,000 to Rs. 1 lakh for each of these units, association president J. James told The Hindu.

An official, who is associated with the industries, points out that in the industrial hub of Aavarampalayam, during the last few months many cottage industries run only when there are orders. Though these units have not closed down completely, their operations have slumped.

Mr. James says about 95 per cent of the units have not taken loans from nationalised banks.

These entrepreneurs have gone to private or financial institutions and are, hence, unable to restructure the loan package. Even a couple of months ago the units were facing problems in repaying the loans or getting more assistance.

Now, they are in need of assistance even for survival. They need credit support to pay rents, workers and power charges.

Hence, the association plans to identify such units that need immediate help.

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