The Hindu : Tamil Nadu / Madurai News : Scope for small-scale units in food processing, rubber

Online edition of India's National Newspaper
Thursday, Jun 10, 2004

Tamil Nadu

Tamil Nadu - Madurai

Scope for small-scale units in food processing, rubber

By Our Staff Reporter

MADURAI, JUNE 9. The scope for establishing small-scale industries (SSI) in food processing, plastic, rubber and readymade garments in Madurai is tremendous, according to K. Ramachandran, president, Madurai District Tiny and Small Scale Industries Association (MADITSSIA).

The abundance of raw materials and cheap labour will come in handy for entrepreneurs of the engineering and packaging sectors, he told The Hindu here today.

Mr. Ramachandran suggested that the Centre and State Governments reintroduce the subsidy scheme for SSIs. The subsidy now provided to entrepreneurs under the New Anna Marumalarchi Thittam should be extended to all entrepreneurs. Many were not keen on taking up projects under the NAMT, as it was aimed at promoting agro-based units, he claimed.

Asked why the MADITSSIA had less number of members, though the district accounted for 10,000 small-scale units, Mr. Ramachandran said the association was keen on promoting SSIs and solving their problems, rather than increase its membership.

However, the present strength of 1,200 was not small for the association that was engaged in providing technical input to entrepreneurs. The association had members even in the industrial estates at Pudur, Kappalur and Uranganpatti.

The cluster-based approach for marketing products did not go down well with the SSIs, Mr. Ramachandran said, because many feared that it would favour them.

Hence, the Central and State Governments could set up common facility centres for all the units. Since procuring raw material or marketing the products was not a problem for them, the entrepreneurs wanted the Government to re-introduce the subsidy scheme.

He claimed that the SSIs did not enjoy a level playing field, as major industries did, in obtaining financial assistance from banks, and this affected the development of the small industries. The banks, he said, should provide lower rates of interest (against the present 13 to 14 per cent) for advances or capital loans extended to the SSIs.

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