Entrepreneurs observe a fast; seek intervention of Union, State Governments
Hosur: Representatives of the Hosur Small and Tiny Industries Association (HOSTIA) took out a march here on Friday in protest against the rise in prices of raw materials and seeking the intervention of the Union and State Governments to bring down the prices.
Led by Ramani Srinivasan, president, HOSTIA, V. Gnansekaran, secretary, took out a rally from SIPCOT to the Sub-Collector office.
In a representation to the Sub-Collector, Nagarajan, the industrialists said that the price of major raw materials including steel, copper, pig iron and rubber had increased significantly in the last few months affecting industrial production.
Cost cutting measures
Major industries undertake cost cutting measures, which are ultimately passed on to the small and tiny industries, who are unable to absorb further losses.
The memorandum asked the State Government to sort out the problems in electricity distribution. Frequent and unannounced power cuts over the last few months have had a drastic effect on the industrial productivity of the small and tiny industries in Hosur. A majority of the small-scale units in Hosur are not able to supply components to large-scale units on time because of the power cuts. This has resulted in severe loss of production. Adding to the woes is that many small-scale units have lost orders. The power cuts which on an average extend up to five to six hours a day has largely resulted in affecting the productivity, bringing about a situation that the industries here would be unable to survive without installing their own power captive generators, which involves huge capital costs.
The representatives asked the Government to improve ifrastrucutre at SIPCOT and SIDCO industrial estates. Though the Government had sanctioned Rs. 1.65 crores for the Pollupalli industrial estate nothing concrete has emerged till date, they added.