MSMEs, industrial groups seek withdrawal of electricity traffic hike

MADURAI: Trade and industry groups and chambers of commerce have urged the state to roll back the electricity tariff hike, which’s to be effected from July 1, for categories of commercial and high tension connections.

The rising cost of electricity keeps piling on the pressure for many MSMEs as several units are on the verge of collapse. Over the last six months, many MSME units have wound down production as they could not bear the increasing cost of electricity, N Jegatheesan, president, Tamil Nadu Chamber of Commerce and Industry, Madurai said on Monday.

According to KSK Natesan, president, Theni District Chamber of Commerce, foodgrains processing units, which are largely reliant on electricity, would certainly be affected. Agriculture is a key component of the economy and most of them in the district are dependent on farm occupations. Around 30 foodgrains processing units are functional in Theni and foodgrains, including dhal shipped from northern states through seaports in Chennai and Thoothukudi were being processed here and dispatched to neighboring state of Kerala in large quantities. Even rice mills have become modern rice mills relying much on electricity.

Further, he said ginning and spinning mills pressed its way into the powerloom sector.

B Muruganantham, former president, Madurai District Tiny and Small Scale Industries Association (MADITSSIA) said still several manufacturing units are yet to recover since COVID lockdown. While the government is paying more attention and allocated more funds to support start-ups, nobody is bothered about the micro and small-scale units, many of which remain shut. Most of the business stakeholders relying on the MSMEs, which guarantees employment for the jobless, had already been struggling with climbing electricity costs since September last and the revised electricity charges came as a shock to many, he said.

SVSS Velshankar, president, Tamil Nadu Foodgrains Merchants Association Limited, Madurai, said lot of factories were affected by the increase in peak hour electricity consumption charges and fixed electricity charges effected since last year. Hence, to safeguard the small and micro level stakeholders, the government should go back on its decision to increase the electricity tariff.

N Nehruprakash, president, Thoothukudi District Tiny and Small Scale Industries Association, THUDITSSIA, said over 500 cashew-nuts processing units in Kanniyakumari district were already closed due to marketing problems and this rising electricity cost would really be rubbing salt into the wounds. They would not even think about reopening such units with the electricity price hike, which could affect the growth in industrial production and investment too, he said.