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Association warns power crisis may turn MSMEs sick

R. Sairam
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“Majority of units may not exist by the time new projects materialise”

Small industries in Madurai have reduced their orders to the bare minimum.— Photo: S. James
Small industries in Madurai have reduced their orders to the bare minimum.— Photo: S. James

The Tamil Nadu Small and Tiny Industries Association (TANSTIA) has warned the State Government that more than 80 per cent of micro, small and medium enterprises (MSME) are on the verge of becoming sick and will become non-performing assets if the power crisis continued much longer.

A delegation, comprising trade and industry representatives from across Tamil Nadu, met Minister for Rural and Small scale Industries P. Mohan, MSME Secretary Hans Raj Verma and Commercial Taxes Secretary Sunil Paliwal in Chennai on Wednesday to discuss the crisis.

TANSTIA president K.R. Thangaraj told The Hindu on Friday that Tamil Nadu had lost many industries to States such as Uttarakhand and Himachal Pradesh because of the power shortage, besides to Puducherry, which has a differential duty structure or complete exemption of duties. Many more large and small units with the capability to migrate would shift their production units to power surplus States soon.

Appreciating the steps taken by the government and conceding that new projects will take time to yield results, he expressed apprehension that a majority of the small units might not exist by the time the new projects and the government’s plans materialised.

It also called for appointing a committee, comprising representatives of industry associations and government officials, to prepare a roadmap for the energy requirement of the State by 2050. It sought strong action against anti-Kudankulam Nuclear Power Project protesters.

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