CHENNAI: The plight of nearly 1,200 micro enterprises housed at Ekkattuthathangal, which are beset by spiralling rents and a miserly approach by banks to loan pleas, could soon change with industry officials on Thursday promising to address their concerns.
Among the major demands made at an interface between officials and entrepreneurs was the relocation of the micro industries to Flatted Factory Complexes.
The Tamilnadu Small and Tiny Industries Association (TANSTIA), which initiated the interface, wanted the Government to build Flatted Industrial Sheds in the proximity of industrial hubs and allot these sites to micro industrial units at concessional rates.
Change attitude
Setting up shop in a place of their own will significantly boost productivity, change banks’ attitude to extend finance and improve access to the market was the common sentiment of the entrepreneurs. The other important demand raised by the TANSTIA related to the adoption of a cluster approach by developing common facilities for these enterprises.
Promising to concede their key demands, P. Selvam, secretary, Small Industries Department, said the onus was also on industries to turn competitive. He urged the entrepreneurs to adopt a cluster development approach that helped the units in Belgaum in Karnataka to script success. Industries should also explore export opportunities, Mr. Selvam said.
G. Santhanam, managing director, Tamil Nadu Small Industries Development Corporation; Rajeev Ranjan, Industries Commissioner; and A. S. Kannan and T. S. Dhanapalan of the TANSTIA were also present.
Earlier, TANSTIA spokesmen highlighted the findings of a status survey undertaken at Ekkattuthangal. The units housed on five acres provide employment to an estimated 5,200 persons.
High rents
C. Babu pointed out that nearly 90 per cent of the industries functioned from rented buildings. High rents and lack of bank finance had made it difficult for the units to survive.
A permanent address would also encourage credit schemes from suppliers who would otherwise suspect some of the units to be fly-by-night ventures, it was pointed out. Terming the survey findings an “eye-opener,” K. Gopalakrishnan said an important—and oft-ignored—role of these micro enterprises was the employment opportunities it offered to under-qualified youth from the lower rungs of society. At least some of these youths would have gone into crime or anti-social activity had they remained unemployed, he said.
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