Power crisis-hit Tamil Nadu industry seeks relief from banks

COIMBATORE: A local industry body today sought RBI's intervention in directing commercial banks in Tamil Nadu to provide concessions like moratorium on repayment of loans to small units that are hit by severe power crisis.

Reacting to reports on RBI instructing banks in Andhra Pradesh to extend help to industries hit by power crisis, Coimbatore District Small Industries Association said that the step has brought new hope to MSMEs in the state, which have been crippled due to severe power shortage over the last two years, that they too could receive similar interim relief with Centre's support.

Industries in Tamil Nadu have been facing severe power crisis similar to Andhra Pradesh. In Coimbatore alone, the crisis has resulted in about 60 per cent production loss and consequent loss of employment to a large number of workforce due to layoffs in MSMEs, , association's President R Ramachandran said.

CODISSIA and other industrial associations had made several representations to RBI suggesting interim relief for MSMEs of the region, he said.

One of the main reliefs that could be given was to instruct banks to allow a one-year moratorium on repayment of loan installments and interest, by which time the power situation will improve and MSMEs will be able to work on normal conditions, Ramachandran said.