Tamil Nadu boilers association seeks Rs 1500Cr of bailout package

The Tamil Nadu Boilers Association (TNBA) comprising producers of boiler and boiler parts appealed to the Central government to increase a special bailout package to allow the revival of sick MSMEs (Micro, Small, and Medium Enterprises) and survival of troubled industries.

“Strong indications have emerged for fabrication units to secure new orders from BHEL as the ship-building, railways, and defence sectors are appealing for a special bailout package of Rs 1,500 crores within the interests of 20,000 direct staff and an equal range of indirect staff of the 450 plus industries,” the TNBA said in a statement.

The subsidiary industries that had increased their capacities phenomenally in the anticipation of a sturdy growth within the boiler business were the worst-affected. Factors like demonetisation and GST have additionally caused their downfall.

“Closure of four major boiler producers due to the initiation of recovery proceedings by banks have caused a loss of over 5000 jobs. A further 50 to 75 units were facing constant difficulty. In another six months, 100 more industries were likely to fall sick,” media reports quoting TNBA president B Pattabhiraman said.

Rather than taking physical possession of the industries and its assets and auctioning them, the banks should stop all legal proceedings and actions against MSME units under SARFAESI Act, they insisted.

The new machines lying idle should be handed over to the industries for re-starting operations under an appropriate monetary package scheme, Pattabhiraman demanded.

“Similar to the efforts taken to establish new MSMEs, the Central and State governments should target on renewing existing units within the Tiruchi cluster on a really fast pace, considering the critical scenario,” TNBA treasurer Rajappa Rajkumar appealed.