MSME units cry for attention, write to CM

Raise issues such as getting patta, high cost of land, need for bailout package

The lack of measures to revive units that are closing down is a major concern.

Facing several challenges in the last few years and feeling neglected by the State government, the Industrial Estate Manufacturer’s Association (IEMA) has written to Chief Minister Edappadi K. Palaniswami urging him to look into their issues immediately.

In the letter, the association said many MSME’s here would have to wind up operations if the government failed to intervene in the next few years.

From getting pattas to high cost of lands in the SIDCO industrial estates, the association sought changes in the bureaucracy and bail-out packages for sick units.

The IEMA mentioned that the patta for estate unit holders has been pending for fifty years. Despite several representations to the State government, no action was taken. Pattas are important especially when they want to obtain bank loans, it said.

Old timers who have their units at the SIDCO estates lamented that new entrepreneurs are not interested in setting up shop in the estates anymore. “Even existing firms don’t want to expand here because of the high cost of plots,” a member said.

Another big concern is the lack of measures to revive units that are closing down. “Bankers continuously issue auction notices. So, we request the government to come out with a solution which will help firms revive instead of permanently closing down or being auctioned,” K.V.Kanakambaram, president, IEMA.

The IEMA also wants a few changes in the bureaucracy that could go a long way in reviving the MSME sector.

Earlier, the Industries Department was looking after small-scale and large industries under one head. “We were getting many benefits out of it. Whenever the large industries benefited from policy decisions, small industries also benefited. Things changed after MSME Department was created,” he said.

A permanent managing director with knowledge of the functioning of MSMEs should be appointed. Frequent shifting of the officers heading the SIDCO affected their functioning. Also, the SIDCO lacked sufficient staff strength, the IEMA pointed out urging the government to merge the MSME Department back with the Industries Department.

Guindy Estate

The association said the Guindy Industrial Estates had become a dumping ground for garbage. It also became a place for unauthorised parking and parking charges were being collected by unauthorised persons.

The association has asked the government to evict unauthorised parking lots in the Guindy estate. “We are paying maintenance charges to the SIDCO with interest and penal interest for arrears payment also. The Chennai Corporation is also collecting property charges. So we request that 50% of the revenue collected be shared with the SIDCO for the better maintenance of the industrial estate. The Corporation is not doing any repair or maintenance work of the estate,” said Mr.Kanakambaram.