TN Government launches credit guarantee scheme to support MSMEs

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Credit and financing for MSMEs: To support the MSME sector, Chief Minister MK Stalin launched the Tamil Nadu Credit Guarantee Scheme (TNCGS) to provide financial assistance to Micro, Small and Medium Enterprises (MSMEs). The program will reduce the need for collateral to obtain loans for the sector, according to the New Indian Express (TNIE) report.

The state also launched a new public sector enterprise, the Tamil Nadu Coir Business Development Corporation, and introduced four coir clusters in Tiruppur. In addition, home textiles would be placed under the push sector to promote the growth and development of the sector, the chief minister announced, according to the TNIE report.

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“I have received petitions and representations from various home textile units requesting financial assistance and grants. The sector produces goods worth Rs 10,000 crore and exports account for more than Rs 4,000 crore,” Stalin said, addressing delegates at the regional MSME meeting.

After due consideration of the representations, the state government has decided to place home textiles under the push sector to help the units qualify for special capital subsidy.

“Apart from this, the government is taking steps to facilitate the growth of MSME sectors. Under the single window system, we received over 10,555 applications, of which 9,212 applications were approved. In addition, export facilitation centers will be set up in each district,” Stalin assured.

He also announced the launch of the Tamil Nadu Trade Receivables Discounting System (TNTReDS), an enterprise resource planning (ERP) platform to bring together all Tamil Nadu PSUs, Statutory Boards, Companies and Apex Cooperatives on the platform. – form of invoice discounting.

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Hailing the government’s efforts for industrial growth, the Chief Minister said that over 221 MoUs have been signed in the past 15 months which has attracted investments of over Rs 2.2 lakh crore which would create more than three lakh jobs. Of this total, 49 are MSMEs which have made investments of 1,300 crore rupees and generated 1,909 jobs, Stalin said.

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