ACMA appeals to State, Central government for relief to Tamil Nadu industry

The Automotive Component Manufacturers Association of India (ACMA), the apex body representing the Indian auto component industry, has urged the state government of Tamil Nadu and the government of India to undertake immediate relief and rehabilitation measures for the severely impacted industry in Tamil Nadu due to the recent torrential rains and floods.

Tamil Nadu accounts for close to 20 percent of the total turnover of the Indian auto components industry and is a significant contributor to the state’s economy. The state is also home to the highest number of SMEs in the country, especially in the auto components sector. The auto components industry in Tamil Nadu employs over 600,000 people, direct and indirect. Apart from adversely impacting the lives of the employees and their families, the floods have led to stalled production for more than three weeks.

Commenting on the grave situation in Tamil Nadu, Arvind Balaji, president, ACMA, said, “In the wake of this unforeseen calamity, there is an urgent need to announce a relief and rehabilitation package for the industry and its employees, especially for the SME segment. The industry must be facilitated to start its operations immediately so that the livelihood of thousands of employees is not adversely affected.”

Some of the recommendations made by ACMA to the state government of Tamil Nadu include immediate installation of water pumps in industrial estates that are flooded, providing uninterrupted power supply to the industry, arranging for generator sets to industries where these have been damaged, setting up of ESI health camps for employees and their families, deferring of sales tax by six months and waiver on electricity tax for a period of four months.

ACMA has also requested for release of long-term soft loans from banks for purchase of essential industrial equipment that has been damaged, expediting settlement of insurance claims in 10 to 15 days, deferring of Customs Duty, Service Tax and Excise Duty for a period of six months and extending 100 percent depreciation on capital equipment damaged.