The Hindu : Tamil Nadu News : TANSIDCO to procure raw material for small enterprises

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Saturday, Jun 14, 2008
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Tamil Nadu

Tamil Nadu

TANSIDCO to procure raw material for small enterprises

N. Anand

To get at least 1,000 tonnes of wax a month for manufacturers

CHENNAI: To help micro, small and medium enterprises (MSMEs), the Tamil Nadu Small Industries Development Corporation (TANSIDCO) has decided to play the role of facilitator by getting statutory clearances, procuring raw material and helping in marketing.

To start with, the TANSIDCO has decided to help candle manufacturers and match-making units in the State by procuring raw material for them. Later, it plans to procure pig iron, coke, iron and steel, paper and potassium chloride. It was decided at Thursday’s board meeting to procure at least 1,000 tonnes of wax a month from Chennai Petroleum Corporation Ltd, store and distribute it to manufacturers in Chennai, Tiruchi, Madurai, Coimbatore, Virudhunagar, Kovilpatti and three more places to ensure sustained supply of the raw material.

“MSMEs have been requesting the TANSIDCO to procure and supply wax. It will not be done on a standalone basis but through joint ventures, involving unit holders, association and SIDCO. The margin money will be paid by the buyers. TANSIDCO will pay the difference. We will also take part in the bidding process to get the right price for the raw materials,” TANSIDCO chairman and managing director D. Rajendran told The Hindu.

Mr. Rajendran said that they were in the process of setting up 22 additional industrial estates in the State, to take the total number to 100. The TANSIDCO had appointed three consultants, including Tamil Nadu Small and Tiny Industries Association (TANSTIA), to identify the potential of each region based on which new clusters would be formed to make it successful.

“Without the help of MSMEs, large and medium companies can’t exist. If MSMEs have to survive and succeed, basic facilities have to be improved. They have been pleading for hassle-free procedures”, he said. On private entrepreneurs purchasing industrial land for short-term capital gains, Mr. Rajendran said: “We have thrashed out the issue by making some changes. Earlier, it was easier for them to transfer or sell the land immediately after allotment. Now, they have to commence production within two years from the date of allotment. Thereafter, they can transfer or sell the land.”

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