M.K. Stalin, Chief Minister (CM) of Tamil Nadu (TN), introduced several initiatives for Micro, Small, and Medium-sized Enterprises (MSMEs) at the Regional MSME Meet in Tirupur, TN. The initiatives are:
- Tamil Nadu Credit Guarantee Scheme (TNCGS)
- Tamil Nadu Trade Receivables Discounting System (TN TReDS)
- Renaming of M-TIPB as FaMe-TN (Facilitating MSMEs of Tamil Nadu)
- Virtual Inauguration of Tamil Nadu Coir Business Development Corporation in Coimbatore, TN
Tamil Nadu Credit Guarantee Scheme (TNCGS)
i.The TNCGS will collaborate with the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) of the Government of India (GoI) to provide a 90% guarantee on qualified loans up to Rs. 40 lakh.
- Eligible loans above Rs. 40 lakh but less than Rs. 2 crore will receive an 80% guarantee.
- The TN government has allocated aside Rs. 100 crore for this scheme.
ii.TNCGS will minimize the need for collateral when MSMEs apply for loans and will initially be offered to MSME clients of Tamilnadu Industrial Cooperative Bank Ltd. (TAICO Bank) and Tamilnadu Industrial Investment Corporation Ltd. (TIIC).
- Under this policy, at least three Nationalized Banks will give loans to MSMEs within a fortnight.
- The scheme makes it easier to generate end-to-end credit scores that take into account financial parameters other than credit ” behaviour -based scores.”
Tamil Nadu Trade Receivables Discounting System (TN TReDS)
i.TN TReDS is an Enterprise Resource Planning (ERP) platform that will tackle issues with late payments for supplies made to larger enterprises.
- This platform will be accessible to all state-owned enterprises, statutory boards, corporations, and apex cooperatives.
ii.If the state entity does not pay the MSMEs that are on the TReDS platform by the end of the 179th day, TAICO Bank will settle the dues for the bills that were uploaded to TN TReDS on the 180th day.
FaMe-TN (Facilitating MSMEs of Tamil Nadu)
i.Mr. Stalin renamed the MSME Trade and Investment Promotion Bureau (M-TIPB) as “FaMe TN” during the event.
ii.FaMe TN has signed Memorandums of Understanding (MoUs) with the World Resources Institute (WRI), the Institute of Chartered Accountants of India (ICAI), and the Open Network for Digital Commerce (ONDC).
Virtual Inauguration of Tamil Nadu Coir Business Development Corporation
i.Mr. Stalin virtually inaugurated the Tamil Nadu Coir Business Development Corporation in Coimbatore (TN), which focuses on establishing new coir clusters, connecting with international customers, establishing research and development centres, and fostering industry-academia collaboration.
ii.Additionally, he issued directives for the establishment of new coir clusters with a government grant of Rs. 26.58 crore in Kundadam and Udumalpet in Tiruppur district, Pollachi in Coimbatore district, and K. Paramathi in Karur district.
- The establishment of the coir clusters would help both the MSMEs and the coconut farmers across TN.
Projects for Which Foundation Stones Were Laid
Mr. Stalin laid foundation for
i.A private industrial estate will be built at Solavampalayam in Coimbatore at a cost of Rs. 18.13 crore by the Coimbatore SIDCO Industrial Estate Manufacturers’ Welfare Association (COSIEMA).
ii.Hostel for Workers at Kurichi industrial estate in Coimbatore at a cost of Rs. 22 crore.
iii. Common facility centre for knitwear cluster at Naranapuram in Tirupur at cost of Rs. 15.34 crore .
iv.Factory complex for silver anklets in Salem at a cost of Rs. 24.55-crore
Recent Related News:
In July 2022, the Tamil Nadu (TN) government signed 60 Memorandums of Understanding (MoUs) at the Tamil Nadu Investors’ First Port of Call-Investment Conclave in order to attract a total investment of Rs. 1.25 lakh crore and create 74,898 jobs.
About Tamil Nadu (TN):
Governor – Ravindra Narayana Ravi
Dance Forms – Theru Koothu; Paambu Attam
Ramsar Sites – Vaduvur Bird Sanctuary; Kanjirankulam Bird Sanctuary
