JOIN USInterest-free loans needed till we are back on our foot: MSMEs affected by Ford India to TN govt
Representatives of Micro, Small and Medium Enterprises (MSMEs) that are dependent on Ford India, which will cease operations in India next year, on Wednesday appealed to the Tamil Nadu government to provide assistance in the form of “interest-free loans” to offset the losses that they will incur due to the loss of business.
Some representatives said the government should intervene and hold talks with any prospective buyer to take over Ford’s Maraimalai Nagar plant to prevent loss of jobs for employees and loss of business for MSMEs. One entrepreneur suggested that the Tamil Nadu government should approach Mahindra to buy Ford’s factory and start manufacturing its vehicles.
Other concerns expressed related to raw materials that can be used only in products and the items that have been imported from other countries.
Representatives over 50 MSMEs that are based in and around Chennai voiced their concerns at a consultative meeting conducted by MSME minister T M Anbarasan and MSME secretary V Arun Roy. The minister had held talks with office-bearers of the Chennai Ford Employees Union last week.
Two companies said 80 per cent of their production catered to Ford and maintained that they will incur losses to the tune of crores of rupees if they don’t find new customers in the next six months.
“We can try other businesses. It is not a problem, but that will take a year. Until then, we need to pay our employees and we cannot fire them summarily. The government should arrange interest-free loans for us to run the show till then,” an entrepreneur from Tirumudivakkam said.
After the meeting, Anbarasan said the department will collate all the information regarding demands made by the MSMEs to Chief Minister M K Stalin.
“We will not leave them (MSMEs and employees in the lurch. We will extend every possible help to save the MSMEs. Only a few people said 80 per cent of their production is dependent on Ford, while a majority said only 30 to 50 per cent of their production capacity will be accepted. We are monitoring the situation closely,” he said.
The minister said he has information that Ford has begun negotiations with its employees for a settlement after its announcement to exit India. “We will intervene if the need arises,” Anbarasan said in response to a question of whether the government will intervene in the issue.