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ACMA for re-establishment of auto sector in Tamil Nadu

A flood-affected woman ties a fishing net to fish in a flooded paddy field at Sildubi village in Morigaon district of the northeastern Indian state of Assam September 11, 2013. At least 500 villages have been affected in Assam state due to the flooding of the Brahmaputra river and its other tributories, local news reports said. REUTERS/Utpal Baruah (INDIA - Tags: ENVIRONMENT SOCIETY DISASTER)
A flood-affected woman ties a fishing net to fish in a flooded paddy field at Sildubi village in Morigaon district of the northeastern Indian state of Assam September 11, 2013. At least 500 villages have been affected in Assam state due to the flooding of the Brahmaputra river and its other tributories, local news reports said. REUTERS/Utpal Baruah (INDIA - Tags: ENVIRONMENT SOCIETY DISASTER)

Chennai, Dec 15 : Automotive Component Manufacturers Association of India (ACMA), which is the apex body representing the Indian auto component Industry, has urged the Tamil Nadu Government and the Centre to undertake immediate relief and rehabilitation measures for the severely impacted industry in the state due to recent incessant rains and floods.

Tamil Nadu accounts for close to twenty 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 six lakh 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, ACMA president Arvind Balaji said, “In 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 Tamil Nadu Government 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 the banks for purchase of essential industrial equipment that has been damaged, expediting settlement of insurance claims in ten to fifteen days, deferring of Customs Duty, Service Tax and Excise Duty for a period of six months and extending hundred percent depreciation on capital equipment damaged. (ANI)