Tamil Nadu Chief Minister K Palaniswami on Monday requested Centre to grant funds for purchase of PPE equipment for doctors, MSMEs, and to bail out cash-strapped distribution companies in the state.

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“I request an ad-hoc grant of Rs 1,000 crore from NDRF immediately to procure medical, protective materials and for the movement of migrant labourers, the cost of which has been borne entirely by the state government,” said Palaniswami, while speaking to Prime Minister Narendra Modi.

“I request you to announce a relief package to ease the immediate burden on the power sector, which will help distressed Discoms,” Palaniswami added.

At the Prime Minister’s video-conference with chief ministers today, Palaniswami also requested for credit-restructuring of loans taken by MSMEs in the state so that these companies would have no re-payment obligations till December 31.

“Tamil Nadu has a large number of MSME units with maximum labourers, I request that the annual credit plan target for lending to MSMEs in Tamil nadu should be enhanced to Rs 1.25 lakh crore for FY21,” added Palaniswami.

“A credit re-structuring package may also be provided so that they do not have repayment obligations till December 31, 2020. Fresh working capital assistance should be extended to the MSME units.”

Quoting state government sources, CNBC-TV18 had reported that the state would make these requests, before Palaniswami began speaking at the meeting, today.

Tamil Nadu has been lobbying for a bailout package for its distribution companies, especially the Tamil Nadu Generation and Distribution Corporation (TANGEDCO), where revenues have dropped by 80 percent in the aftermath of a steep fall in demand for power, across industries in the state. The state government has also been requesting the Centre for additional funds for industrial revival.

First Published:May 11, 2020 8:12 PM IST