The Tamil Nadu government on Saturday announced a ₹1,000 crore relief package for the flood-affected districts in the southern part. The package includes loans to the MSMEs and constructing houses, according to a government release.

Thoothukudi and Tirunelveli districts on December 17 and 18 witnessed unprecedented rains damaging many houses. The State government said it would rebuild the damaged houses. For new houses, the State government will provide ₹4 lakhs and for damaged houses, a sum of ₹2 lakhs will be provided. This was also implemented in Tiruvallur, Kancheepuram and Chengalpet districts that witnessed heavy rains in the first week of December. A sum of Rs 385 crore has been allotted for 4,577 new houses and to rebuild 9,975 damaged houses, the release said.

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In eight districts, including Thoothukudi and Tirunelveli, a total of 2.64 lakh hectares were damaged, for which a relief of ₹250 crore will be provided.

A special scheme will be launched to provide loans for small traders, petty shop owners and street vendors with a loan of ₹10,000 at 4 per cent interest and ₹1 lakh at 6 per cent interest, the release said.

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For MSMEs affected by the floods in Chennai, Tiruvallur, Kanchipuram, Chengalpet, Thoothukudi and Tirunelveli districts, a special scheme will be launched to extend a total loan of ₹100 crore at a concessional rate of 6 per cent. A sum of ₹3 lakh will be provided, and the units can repay it in 18 EMIs. The release said this will help nearly 3,300 MSMEs.