A set of measures announced by the Govt. of Tamil Nadu to help MSMEs amid COVID-19 pandemic

On 12 May, MK Stalin the new State Chief Minister of Tamil Nadu has announced a set of measures to handhold Micro, Small and Medium Enterprises (MSMEs) to survive during the lockdown imposed in the state due to second surge of Covid.

A reported the Chief Minister is going to give out a sum of Rs 280 cr towards Investment Subsidy for MSMEs during the current fiscal year; 60 per cent Out of this amount, which is Rs 168 cr, will be released immediately to all eligible MSME sector that are yet to receive the capital subsidy.

He also notified that one Lakh employees in SIDCO complexes and MSME sector who are above the age of 45 will get free COVID-19 vaccination; also the 5 per cent interest subsidy that received under CGTMSE and Technology Upgradation Scheme will be disbursed to MSME units.

Moreover, Stalin extended the deadlines as follows: 1) Payment of Mortgage of Deposit registration fee up to March 31 is being extended till December 2021; 2) All legal licenses required for MSME industries from pollution control board, fire and rescue services, labour, etc., which are scheduled to expire between May to September 2021, will be extended till December 2021; 3) Exemption for the norm that sales proceeds should be increased by 25 per cent for expanding MSME sector, which has been extended till March 31, will be extended till December 31, 2021; and 4) Deadline for payment of price of SIDCO plots, instalments, and the rent for factories will be extended by six more months.

Also, he added that the deadline for payment of professional tax by employees of big and small industries will be extended by three more months.