India’s Automotive Component Manufacturers Association (ACMA), is urging the State of Tamil Nadu and the Government to provide immediate relief for the severely impacted industry due to the recent heavy rains and floods.

“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,” said ACMA president, Arvind Balaji.

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“The industry must be facilitated to start its operations immediately so the livelihood of thousands of employees is not adversely affected.”

Some of the recommendations made by ACMA to the State Government of Tamil Nadu include immediate installation of water pumps in industrial estates that are flooded, providing uninterrupted power supply to the industry and arranging for generator sets where these have been damaged.

The Indian supplier association is also calling for health camps to be established for employees and their families, deferring sales duty by six months and a waiver on electricity tax for 16 weeks.

ACMA is equally requesting the release of long-term soft loans from banks for purchase of essential industrial equipment which has been damaged, expediting insurance claims in ten to fifteen days, deferring Customs Duty, Service Tax and Excise Duty for a period of six months and extending 100% depreciation on capital equipment affected.

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Tamil Nadu accounts for almost 20% 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, which employs more than 600,000 people, directly and indirectly.

The floods have led to stalled production for more than three weeks.