Tamil Nadu: Chief minister Stalin distributes relief funds to families affected by cyclone Michaung

Earlier, Stalin requested Union Finance Minister Nirmala Sitharaman to provide a moratorium on loan repayment for small businesses, particularly to those people who were affected by the Cyclone 'Michaung' that hit the state earlier this month.

In the letter to Minister Sitharaman, Chief Minister Stalin urged the central government to direct all commercial banks, cooperative banks, all financial institutions and non-banking financial companies to issue a moratorium for a period of three months -- December to February -- on payment of all instalments linked to agricultural term loans, retail and crop loans.

The chief minister said 37 lakh families across Chennai, Chengalpattu, Kanchipuram, and Thiruvallur districts have borne the brunt of severe rains that lashed the state before the cyclone made its landfall in neighbouring Andhra Pradesh.

"Although we have been able to restore normalcy in their daily lives, the impact on their livelihood still lingers for many. Small businessmen, traders and MSME units impacted by the floods are yet to return to their regular economic activities. Many of these families and business entities have availed loans for various purposes and would be finding it impossible to repay their dues," read CM Stalin's letter to the Union Finance Minister.

The chief minister said some relaxation in the loan repayment schedules is needed till the affected civilians come out of the crisis.

For working capital facilities sanctioned in the form of cash credit or overdraft, the Tamil Nadu chief minister suggested that lending institutions be permitted to allow a deferment of three months on payment of interest on all such outstanding.

Cyclone Michaung made landfall in Tamil Nadu earlier this month, bringing with it heavy rains, strong winds, and subsequent damages to infrastructure and homes, apart from the loss of lives.

Stalin has allocated a sum of one crore and 90 lakh rupees for the cleaning work of schools in the cyclone-ravaged districts of Chennai, Chengalpattu, Kanchipuram, and Thiruvallur.

With the receding floodwaters, the state government is actively engaged in relief efforts across Chennai and its adjacent districts. As part of these efforts, over 800 medical camps were organised in the capital city. (ANI)