COIMBATORE/CHENNAI: Micro, Small and Medium Enterprises (MSMEs) across Tamil Nadu have urged the state government to grant a temporary exemption from charges for solar power usage and extend financial support for alternative technologies as industries grapple with a severe shortage of commercial LPG cylinders.
As small industries are eyeing a shift to solar energy, additional levies such as network charges, a generation tax of 10 paise per unit and peak-hour charges (between 6 am and 10 am, and 6 pm and 10 pm) are increasing their operational costs. To ease the burden, MSMEs have sought a temporary waiver or relaxation of these charges.
“To reduce reliance on LPG, several industries are also planning to adopt technologies such as laser cutting and plasma cutting. However, these machines require significant investment. The government should also introduce special capital subsidy schemes for MSMEs with simplified procedures and faster disbursement,” said S Surulivel, chairman of the Railway Equipment Suppliers Association.
“Some others are exploring a cluster model, similar to cloud kitchens, where common infrastructure and shared production facilities can reduce investment and operational costs. Such industry groups should be brought under the MSME Cluster Development Programme and provided with subsidies,” Surulivel added.
In a statement, Association of Indian Entrepreneurs national chairman KE Raghunathan on Thursday said most MSMEs operate on thin profit margins of around 5-7%, leaving little room to absorb sudden increases in energy costs. Prolonged disruptions could force units to cut production, reduce jobs or temporarily shut down operations, he added.