MSME sector disappointed over Tamil Nadu State Budget

Over the past four to five years, MSME units have been suffering due to general recession and the pandemic. But no provision has been made in the Budget to take care of stressed and sick units.

March 18, 2022 07:45 pm | Updated March 19, 2022 11:33 am IST - TIRUCHI

TN Finance Minister Palanivel Thiaga Rajan and Finance Secretary N. Muruganandam with Chief Minister M.K. Stalin before the presentation of the State budget on Friday.

TN Finance Minister Palanivel Thiaga Rajan and Finance Secretary N. Muruganandam with Chief Minister M.K. Stalin before the presentation of the State budget on Friday. | Photo Credit: SUPPLIED PIC

The MSME sector in Tiruchi has expressed disappointment over the State Budget for failing to come to the rescue of ailing units.

“MSMEs contribute much to the growth our State, but they have not been given due importance in the Budget,” observed Rajapppa Rajkumar, president, BHEL Small Scale Industries Association.

Over the past four to five years, MSME units have been suffering due to general recession and the pandemic. But no provision has been made in the Budget to take care of stressed and sick units. The government should see to that no MSME unit is closed so as to prevent the assets created and the expertise developed from going waste. “Instead of encouraging new units, existing units need to be supported to ensure their survival and growth,” he observed.

“Tiruchi is considered one of the best fabrication hubs in South Asia and has a manufacturing capacity of about seven lakh tones per annum. However, the present capacity utilisation is just about 25%. Although Tamil Nadu has been identified for promoting a Defence corridor, there has not been much forward movement. MSMEs of Tiruchi can execute major orders for the Defence sector. The State government should come forward to help the MSMEs here in securing the orders”, he said.

The Tiruchi District Tiny and Small Scale Industries Association (TIDITSSIA) welcomed the move to provide capital subsidy and the credit guarantee scheme. In a joint statement, P. Rajappa, president, and S. Gopalakrishnan, Secretary, TIDITISSIA, however, pointed out that only ₹911.50 crore has been allotted to the MSME sector. They expressed disappointment over the absence of any announcement on promoting a food park and expansion of the IT Park in Tiruchi. “We were expecting a lot as the MSMEs were going through a difficult time,” said Mr. Gopalakrishnan, speaking to The Hindu.

Expressing happiness that the fiscal deficit has been brought down, S. Pushpavanam, Secretary, Consumer Protection Council, Tamil Nadu, however, felt that it could be brought down further if subsidies were reduced. The assistance of ₹1,000 a month planned for girl students of government schools to pursue higher education, can be restricted to needy students. Corporations and municipalities should plug loopholes in tax collection and be made to stand on their own legs, reducing the support given by State government, he said.

Mr. Pushpavanam described as “dangerous” the move to set up special social media monitoring cell in the Police Department as it could lead to misuse. The higher allocation to Tamil Nadu Fire and Rescue Department was welcome and long overdue, he added.

The government’s move to extend ₹1,000 as monthly assistance to girl students of government schools for pursuing higher education would help rural girls, observed Mahadhanapuram V. Rajaram, president, Cauvery Irrigation Farmers Association. He also welcomed the decision of the government to bear the educational cost of government school students gaining admissions to undergraduate programmes at premier institutions such as IITs, AIIMS and IISc.

M. A. Aleem, former vice-principal, K.A.P.Viswanatham Government Medical College, welcomed the move to establish a Tamil Nadu Institute of Mental Health and Neuro Sciences. He urged the government to give a facelift to the Natharvali Dargah in Tiruchi under its initiative to repair and reconstruct places of worship of minorities.

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