The Entrepreneurs and Finance Customers of India (EFCAI) on Friday urged the State Government to waive cyclone loans and interest thereon provided to about 500 MSMEs so that they can be revived.
EFCAI working chairperson Harendra N. Mahapatra and OASME secretary general Satweek Swain handed over a memorandum to Chief Secretary AP Padhi in this regard on the day.
“By waiver the loans and interest, 500 MSMEs that had availed Super Cyclone loan and could not repay due to reasons beyond their control can be revived. It will also help the OSFC get revived,” read the memorandum.
It noted that the since the Super Cyclone soft loan was provided 12 per cent and 13 per cent interest rates the MSME units could neither revive nor service the loans.
“Since the loan was under guarantee of the State Government, the OSFC had to repay this loan to SIDBI. As on date, OSFC has in their books, about Rs 45 crores interest and Rs 8 crore principal outstanding to be collected from about 500 MSMEs against this loan. One possible way is to waive the Cyclone loan in full or at least the interest portion,” the memorandum said.
The Chief Minister had written to the then Union Finance Minister P Chidambaram in July 2006 for conversion of the Cyclone loan, they reminded.