TN vows to provide SMEs with quality power by August 2012

Chennai:

After being hit hard by rising petroleum prices and erratic power supply, there is a ray of hope for small and medium enterprises as the state vowed to do away with the power cuts for small and medium enterprises by August 2012.

Delivering a keynote address during a conference on ‘SME Issues – Challenges and Prospects’ organized by TANSTIA-FNF Service Centre and Fur Die Freiheit here on Tuesday, chairman and managing director of Tamil Nadu Small Industries Development Corporation Limited Hans Raj Verma said the state is undertaking a massive capacity addition and erratic power supply will be a thing of past.

Verma, who was earlier Tamil Nadu Electricity Board chairman, also vowed to provide quality power to SMEs in SIDCO estate.

The official, who took the new mantle as SIDCO chairman, stressed the need for technology upgradation by SMEs to survive in the business. While globally, the focus is on technology upgradation, India way behind the south east nations in this regard.

He also vowed to provide best infrastructure facilities for industrial estates besides stressed the need for financial literacy. “In United States, there are success stories after bankruptcies. Banks should encourage the SMEs and join hands with them for a life-long partnership,” he said.

Director of MSME S Sivagnanam said the Union cabinet has given a nod  on 20 per cent purchase preference to SME sector. “This will give an option of business worth five lakh crore for MSMEs,” he said.

Meanwhile, auto ancillary units in the state are hit hard by the rise in petrol prices and cost cutting measures by auto majors. Chairman of TFSC T S Dhanapalan said Tier-II auto vendors are the worst affected due to this. He also complained that many industrial units are hit hard by lack of power supply. “We get only four hours of power supply which hits the production of SMEs,” he added.