CM extends interest subsidy for MSMEs

Chief Minister J Jayalalithaa on Sunday ordered extension of a scheme to provide interest subsidy to loans availed of by entrepreneurs through the Tamil Nadu Industrial Investment Corporation (TICC), for running industries in the Micro, Small and Medium Enterprises (MSME) sector for another year.

To help develop the MSME sector, the CM had already ordered issuing on loans through TICC with three per cent interest subsidy during the current financial year.

Of the total subsidy extended to the entrepreneur at the end of the year, the TICC can get a reimbursement up to Rs 25 crore from the State government.

The CM had said after reviewing the scheme during the first year that it would be extended to the second year.

An official press release here said entrepreneurs benefitted by the scheme, can also avail other subsidies and incentives offered by the Centre and State governments.

Provision of loans at a nominal interest rate would help entrepreneurs start their industries with small investments and develop financial resources in due course.

This, in turn, would help the growth of the MSME sector in Tamil Nadu.