State’s new policy evokes mixed response from micro, small and medium enterprises

Ahead of the Assembly election, the Chief Minister has rolled out a policy for the MSME sector which has been grappling with numerous points over the past 5 years. Though industrial estates stated they welcomed the policy, many have been sceptical in regards to the targets and methods listed in it. Some even stated there may have been a little bit extra detailing to unravel the instant disaster. A couple of associations identified that they weren’t consulted whereas this policy was formulated, whereas one other part of the MSMEs was questioning whether or not the identical construction could be adopted in case of a change in authorities after the election.

K.E. Raghunathan, convener, Consortium of Indian Associations, who has been highlighting the problems and challenges confronted by the sector, stated, “While we certainly appreciate the various announcements in terms of creation of infrastructure, financial subsidies, social security support and employment generation, some of the proposed schemes are an extension of what is being offered by the Central government.”

“Expectations of support to MSMEs affected by COVID-19, such as an additional moratorium for repayment of loan EMIs, additional loans for those not covered under the Emergency Credit Line Guarantee Scheme of the Central government, setting up of raw material ration shops at industrial parks and fair price shops for MSMEs are missing in this document,” he stated.

Mr. Raghunathan stated many of the bulletins required at the very least two to a few years to fructify. With the election due within the subsequent two months, the query of who will kind the subsequent authorities stays open, thus elevating issues over continuity.

The new policy is aimed toward attracting investments value ₹2,00,000 crore by 2025 and creating jobs for over 20 lakh individuals. “It is interesting to read what was printed in the document but it would take a year or two for the MSMEs to tide over the current crisis, and we are yet to get back to the pre-COVID-19 level. The State could have doled out some incentives to the existing MSMEs,” stated the proprietor of a unit in Chennai.

Many micro models felt the policy had nothing particular for them.

“Any policy for MSMEs does not address the requirements and challenges of micro units,” stated J. James, president of the Tamil Nadu Association of Cottage and Tiny Enterprises.

R. Selvam, secretary of Thirumudivakkam Industrial Estate Manufacturers Association, stated, “We really appreciate the government’s intention of bringing about transparency in the SIDCO land allotment through an online workflow system.We hope the overall upgrade of the existing industrial estates will be given top priority in order to improve the basic infrastructure, which is lagging in many of the SIDCO estates.”

The Tamil Nadu Small and Tiny Industries Association hailed the creation of six new industrial estates by means of SIDCO. Its president S. Anburajan stated the allocation of funds for the infrastructure of the estates was welcome.