New Delhi, May 11 (KNN) The Tamil Nadu government recently opposed the proposal to privatize the steel plant in Salem. Chief Minister K Palaniswami in a letter to Prime Minister Modi said that the plant has a good reputation globally and is an iconic symbol for the state, privatising it would cause ‘considerable unrest’ among the locals.

MSMEs in the region are of similar view and are opposing the proposal to privatize, however their reason to do so doesn’t calibrate with the CMs reason.

Talking to KNN, E.R. K. Mariappan, President of The Salem District Small Scale & Tiny Industries Association and Indian Chamber of Commerce and Industry explained the complexity of reasons because of which the MSMEs are opposing the proposal. He informed that this is not the first time that there are talks of privatization, earlier in 2001, there was a similar proposal and the MSMEs had to agitate and protest against the decision. Probably it is because of this fear that the CM is echoing the MSMEs this time.

He informed that the Salem Steel plant at present itself doesn’t allow space to the MSMEs, privatization of the plant would further make the MSMEs alienated.

Mariappan said that the plan spreads over 4000 acres, of which only 1/3^rd is utilised. There is huge chunk that is lying but the officials are not willing to allot it to the MSMEs.

Citing the problems that the small units face in the region he said that the government does little to support the small units. Even for the manufacturing of simple items such as utensils, the government has given space to the Multi-National Companies (MNCs) such as ‘Butterfly’, how are the MSMEs supposed to stand in such a scenario questioned Mariappan.

The ICCI chief expressed that the MNCs bring in people from abroad and do not hire the locals, which is both ethically and legally wrong.

He is of the strong view that while the government claims that the plant to be a public plant, there is huge nexus between the officials and the big players, privatizing it further will kill the remaining spirit in the MSME entrepreneurs. (KNN/ DA)