Green power key to MSME growth

Chennai:

In a bid to realize Vision 2023, Micro, Small and Medium Enterprises (MSME) Department principal secretary Hans Raj Varma said lean manufacturing and green power are key to MSME growth.

Addressing a Dissemination meet on study on public-private partnership organized by TFSC here on Monday, Varma said that Small Industries Development Corporations will implement Lean Manufacturing Competitiveness Scheme (LMCS) of Micro and Small Enterprises (MSEs) under the National Manufacturing competitiveness Programme (NMCP).

The scheme  will be implemented in 25 clusters this year at five clusters each in the five major manufacturing hubs of Chennai, Coimbatore, Madurai, Tiruchirappalli and Hosur, he said.

This scheme envisages reducing the manufacturing costs, through proper personnel management, scientific inventory management, improved processed flows, reduced engineering time etc. The main

objective is to increase productivity by 20 per cent.

He also said that Tamil Nadu government would provide support to MSME sector in tapping the green power.

Earlier, Anbu Palani Kumar of Indian Institute of Management -Ahmedabad Alumni Association's (IIM-AAA) Chennai Chapter highlighted the need for public private participation. He said a study conducted by IIMAAA suggested third party financing by non banking financial companies for paying the suppliers of renewable energy directly and charging MSME units via monthly EMIs.

He said financing is the major bottleneck for MSME units and NBFC has come forward to support the PPP project upto Rs 25 crore that can finance purchase between 100 to 200 MSME units