SICCI lauds govt’s relief measures; estimates loss at Rs 10,000 crore

The SICCI appreciated Chief Minister J Jayalalithaa for her government’s relief measures to help people affected by the recent deluge. In addition, all other political leaders and community organisations swung into action across the city to serve the people affected, which was an extraordinary show of strength and highlighted the spirit of solidarity of the people of Chennai, SICCI President Palani G Periasamy said in a statement here. He said, “The Chennai region’s vulnerable micro and small industrial sector has expected a loss of nearly Rs840 crore every week due to the floods, while the textile traders could suffer financial losses to the tune of Rs 400 crore, the loss due to stoppage of production in the Pharma industry could be at Rs150-200 crore, the logistics industry at Rs 200 crore and the overall loss to the entire automotive sector could be around Rs 1,200 to Rs 1,500 crore this week. 

Dr Periasamy also said that it is estimated that the entire losses would exceed Rs10,000 crore with a serious impact on the Tamil Nadu economy. The rains not only hampered production process for days, but also triggered shortage of essential supplies and the work force for production to resume. The chamber seeks the government’s intervention in the short term, in easing the monetary burdens of the industry in this regard and provide for rescheduling loans, rebuilding the damaged units and accessing working capital. Other immediate measures such as allowing the industries to work on a Sunday, permitting the deferral of payments of the utility bills would help the industries return to normalcy quickly.

He said just as the Union Government issued a GO deferring the service tax and income tax payment, the state government could also follow suit and permit the companies to defer the payment of the monthly VAT, EPF, ESI etc. The government could also open a separate portal for online registration of details of flood affected industries. A grievance cell needs to be opened in the respective departments of industries. Banks could also consider providing interim relief and ad hoc cash credit limit to MSMEs to the extent of 25 per cent of their existing limit with a lower interest rate repayable in 36 months period with a holiday of 12 month period.