CHENNAI: Small and tiny industries in the State want a comprehensive policy that will spur the growth of the manufacturing sector and also address issues that led to many of them becoming sick.

Such a policy initiative, leaders of the units said, had become imperative in the backdrop of the problems they faced in accessing finance and technology.

Though they have been highlighting the need for a comprehensive policy for some time now, expectations are running high as the budget presentation, the first after the Dravida Munnetra Kazhagam Government assumed office, nears. One reason is the presence of DMK in the ruling coalition at the Centre.

"Pioneering effort"

One of the measures required by the sick units, according to the president of the Industrial and Financial Reconstruction Association for Small and Tiny Enterprises, D.E. Ramakrishnan, was the reintroduction of the Margin Money Assistance Scheme. Describing it as one of the "pioneering efforts of yesteryear," he said if reintroduced, the scheme would help in the revival and rehabilitation of many sick enterprises.

Noting that the units had voiced their needs to the Deputy Chairman of the State Planning Commission and senior officials of the Small Industries Department recently, he said a sympathetic view was the need of the hour.

For instance, the Tamil Nadu Electricity Board should not insist on fixed/demand charges during closure period of the units, and the Commercial Tax Department should offer concessions on arrears of sick units.

Penal interest

The Tamil Nadu Industrial Investment Corporation Limited should refrain from levying penal interest during the period of closure.

If a unit was auctioned, penal interest should not be levied up till the time of auction. In the event of auctioning and recovery of dues, the penal interest should be completely waived.

Mr. Ramakrishnan wanted a State-level empowered standing committee to go into the various aspects and to suggest remedial measures for the revival and rehabilitation of the enterprises. Absence of such an institutional framework came in the way of timely identification of incipient sickness and in taking remedial steps. The scheme framed by Gujarat could serve as a model.

Single window system

A single window system through which small and tiny units could get all the clearances should be created.

This would help cut the "enormous and indefinite delay" encountered by the enterprises. The sectors, providing employment to many lakhs, also needed a low-interest financial scheme for technology upgradation.

Printer friendly page  
Send this article to Friends by E-Mail