IIT-M, industry bodies to study COVID-19 impact on MSMEs

Chennai, May 14 (): The Indian Instituteof Technology-Madras, in association with industry bodies,would undertake a study on the impact of coronavirus in themicro, small and medium enterprises in Tamil Nadu. The state accounts for 6.89 lakh registered enterprisescomprising 15 per cent of the total MSME sector present inthe country. Considering this, the disruption caused by the COVID-19is a major concern, a press release said. The study would suggest immediate and long-term policyinitiatives to the government for the sector. It is expectedto be completed in three-four weeks, the release said. The study follows the stimulus packages announced by theFinance Ministry to revive the sector. IIT-M would collaborate with ConsoTree, engaged inresearch and industry development, Tamil Nadu Small and TinyIndustries Association and district-level bodies, includingthe Coimbatore District Small Industries Association. "The survival of these enterprises are at stake due tothe pandemic. There is an urgent need to undertake researchto analyse the challenges of the enterprises in detail," theIIT's associate professor of economics Subash Sasidharan wasquoted as saying in the release. The phases of lockdown announced by the governmentwitnessed a revenue shortfall of more than 60 per cent forthe sector, creating an unprecedented crisis to the industry. The MSME sector faced a severe shortage of workingcapital, including delay in payments, shortage of labour anddisruption in supply chain, the release said. VIJNVG NVG