Tiruchy MSME Engineering Units Seek Revival Package

01 Jul 2026 CW Team

The measures requested included support to revive closed units, improved access to bank credit and facilitation of restructuring of non-performing assets to help firms manage accumulated liabilities. The association also asked for steps to ensure timely payments to suppliers, greater outsourcing of work from Bharat Heavy Electricals Limited (BHEL) Tiruchy to local engineering industries and a GST amnesty scheme that would waive penalties, allow filing of pending returns without fine and permit the payment of arrears in instalments. These measures were presented as necessary to bridge the gap between improving demand and constrained supply capacity.

The association said Tiruchy's engineering sector was showing signs of recovery after nearly 10 years of sluggish growth and noted that BHEL Tiruchy's order book had reached record levels. It observed that the public sector undertaking was expected to scale up production and that this could generate increased outsourcing opportunities for ancillary industries in the region. The association argued that such developments would be insufficient without targeted support for firms that remained distressed.

The submission highlighted the depth of the downturn and its effect on the local MSME ecosystem, noting that of nearly 450 engineering units operating in and around Tiruchy only about 150 remained functional, with the remainder closed, under financial stress or classified as non-performing assets by banks. The association's leadership described how delayed payments had left many firms unable to meet statutory obligations and stressed that accumulated GST arrears were a key barrier to restarting operations, urging swift policy action to restore viability.

The Tamil Nadu Boilers Association has urged the state chief minister to announce a comprehensive revival package for stressed micro, small and medium enterprises (MSME) engineering units, citing years of recession, the impact of the Covid-19 pandemic, mounting debt burdens and delayed payments from customers. In a letter sent last week the association sought a range of measures to reboot local industry and restore employment and production levels. It said the proposal aimed to bring closed units back into operation and to ease financial bottlenecks that have constrained growth. The measures requested included support to revive closed units, improved access to bank credit and facilitation of restructuring of non-performing assets to help firms manage accumulated liabilities. The association also asked for steps to ensure timely payments to suppliers, greater outsourcing of work from Bharat Heavy Electricals Limited (BHEL) Tiruchy to local engineering industries and a GST amnesty scheme that would waive penalties, allow filing of pending returns without fine and permit the payment of arrears in instalments. These measures were presented as necessary to bridge the gap between improving demand and constrained supply capacity. The association said Tiruchy's engineering sector was showing signs of recovery after nearly 10 years of sluggish growth and noted that BHEL Tiruchy's order book had reached record levels. It observed that the public sector undertaking was expected to scale up production and that this could generate increased outsourcing opportunities for ancillary industries in the region. The association argued that such developments would be insufficient without targeted support for firms that remained distressed. The submission highlighted the depth of the downturn and its effect on the local MSME ecosystem, noting that of nearly 450 engineering units operating in and around Tiruchy only about 150 remained functional, with the remainder closed, under financial stress or classified as non-performing assets by banks. The association's leadership described how delayed payments had left many firms unable to meet statutory obligations and stressed that accumulated GST arrears were a key barrier to restarting operations, urging swift policy action to restore viability.

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