Extend loan moratorium, say MSMEs

Coimbatore: With the loan moratorium announced by the Centre for industries getting over by August 31, micro, small and medium enterprises (MSME) in the district are desperate for extension. As many as 80% of MSME owners who had availed loans are not in a position to pay their dues, industry representatives said.

When the country-wide lockdown was imposed in March, the Reserve Bank of India had granted a three-month moratorium till May. Another three-month moratorium was announced till August.

With the moratorium deadline nearing, MSME forums have been seeking extension of moratorium for a year.

P Nallathambi, president of the Coimbatore Sidco Industrial Estate Manufacturers Welfare Association (Cosiema), said industrial units in the estate are working in 40%-50% of their capacity due to lack of workers and orders. “It would be difficult for us to pay dues,” he said.

Bankers have started calling them and asking to have enough balance for debiting dues, said S Surulivel, president of Railway Suppliers Association (Rasa).