Tiruchy Engineering Msmes Seek State Govt Support Amid Prolonged Financial Stress

(MENAFN- KNN India) Chennai, Jun 25 (KNN) The Tamil Nadu Boilers Association has written to Chief Minister C Joseph Vijay seeking a comprehensive relief package for stressed micro, small and medium enterprise (MSME) engineering units in Tiruchy, citing the cumulative impact of nearly a decade of sluggish growth, the Covid-19 pandemic, mounting debt and delayed payments from customers.

Of the roughly 450 engineering MSME units that once operated in and around Tiruchy, only about 150 remain functional. The rest have either shut down, are under financial stress or have been classified as non-performing assets by banks.

What the Association Has Asked For

In a letter to the chief minister last week, the association urged measures to revive closed units, improve access to credit, and facilitate the restructuring of non-performing assets (NPAs), TNIE reported.

It also called for a GST amnesty scheme covering waiver of penalties, the filing of pending returns without fines and payment of arrears in instalments, noting that delayed payments from customers had left many firms unable to meet statutory obligations despite being willing to resume operations.

The body further sought timely payment enforcement for MSMEs and increased outsourcing of work from BHEL Tiruchy to local ancillary industries.

A Window of Opportunity

Association President Rajappa Rajkumar said, "After nearly ten years of recession and setbacks, many units are struggling to return to normal operations. At a time when business opportunities are improving, the government should support these industries in rebuilding their capacities," as quoted by TNIE.

The association acknowledged that conditions are beginning to improve. BHEL Tiruchy's order book has reached record levels, raising expectations of a significant scale-up in production and a corresponding increase in outsourcing to local engineering units.

(KNN Bureau)

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