
CHENNAI/ COIMBATORE: Tamil Nadu Small and Tiny Industries Association (Tanstia), the umbrella organisation representing many other associations representing small industries, expressed concern about revised turnover criteria for MSMEs, saying the setting of Rs 500 crore as the limit for classification of medium scale industry can affect micro industries.
CK Mohan, president of Tanstia, said increasing the criteria will not automatically lead to meaningful growth for micro and small industries and stressed the need for a dedicated policy for micro and small industries on affordable finance, subsidies and handholding schemes.
M Balachandran, MD of Delta Control Systems in Ambattur also said including industries with turnover up to Rs 500 crore will benefit large industries and not the MSMEs, especially micro industries.
S Vasudevan, managing director of Pioneer Coldstore and Cladding, said the the new turnover limit can help paint a rosy picture that the MSME sector is doing well by including the companies having Rs 500 crore turnover. However, this could ignore the real MSMEs.
Southern India Engineering Manufacturers Association (SIEMA) president Mithun Ramdas also welcomed the increase of the credit guarantee scheme, stating it would help micro industrialists to utilise the credit for their day-to-day operations.
Tamil Nadu Association of Cottage and Micro/ Tiny Entrepreneurs (TACT) expressed disappointment over the lack of announcements regarding 5% GST for job orders, reduction of interest rates for bank loans, a special fund for establishing an industrial park in Coimbatore and others.
M Balachandran, MD of Delta Control Systems in Ambattur, said he was looking for measures similar to Mahatma Gandhi National Rural Employment Guarantee Scheme for MSMEs. “We expect a similar scheme covering urban youth since MSMEs are struggling to get workforce,” he said.