Tamil Nadu MSMEs need strict measures to revive the sector: Industry writes to CM Palaniswami
New Delhi, May 7 (KNN) Raising serious concerns over lack of incentives for MSMEs in Tamil Nadu, Industrial Estate Manufacturers Association (IEMA) has written a letter to chief minister Edappadi K. Palaniswami.
Through the letter, the manufacturing MSME units have demanded strict measures to revive the sector.
K.V Kanakambaram, President, IEMA, wrote in the letter that many MSME units in state are facing grave challenges as investments have moved out of the state in search of better investment prospects in other states.
He said these states were offering special incentives and packages to attract investments due to which MSMEs are losing their share in Tamil Nadu.
If this situation persists for long and government wouldn’t prescribe the corrective measures, many units would get shifted to neighboring states, he added.
In this direction, he requested the government to figure out the measures to promote new large industries because without big firms and investments MSME sector would die gradually.
Other concerns that were raised by the industry association included high real cost in Tamil Nadu as compared to neighboring states, infrastructural concerns and various implementation issues that are forcing MSMEs to relocate to other states for survival.
Meanwhile, Tamil Nadu Small and Tiny Industries Association (TANSTIA) said despite good policies for the sector, the MSMEs are still facing challenges and one of the main reasons for this is reluctant attitude of the banks in giving loans. Due to this, TANSTIA said the sector heavily looks upto private financers. (KNN/YV)