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BHELSIA reminds the government to revive the MSME sector in Tamil Nadu

Ease of Doing Business for MSMEs: Rajappa Rajkumar, president of BHELSIA in a letter addressed to Prime Minister Narendra Modi said the plan for establishment of major manufacturing centres to make defence equipment has not progressed on expected lines though several seminars have been held.

BHELSIA reminds the government to revive the MSME sector in Tamil Nadu
At present, the MSME units have been able to get orders for only 1.5 lakh metric tonnes per annum.

Ease of Doing Business for MSMEs: Bharat Heavy Electricals Limited Small and Medium Industries Association (BHELSIA) is seeking the central government’s action on stimulating the MSME sector following the revival of market conditions, as per the Hindu report.  

Rajappa Rajkumar, president of BHELSIA said, while the improvement in the order position of BHEL, identification of Tamil Nadu for manufacture of defence components, choice of Tiruchi as one of the heavy fabrication centres for defence, and the interest evinced by railways in the welding expertise developed by hundreds of MSME units are reflections of market revival, the procurement policy of PSUs (Public Sector Undertakings), including BHEL, Railways and Defence sector, needs modification for a ‘win-win’ situation. 

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Rajkumar in a letter addressed to Prime Minister Narendra Modi said the plan for establishment of major manufacturing centres to make defence equipment has not progressed on expected lines though several seminars have been held. 

Reminding the Prime Minister of his promise to address the issues of MSME units in the open meeting during his election campaign in Tiruchi, the BHELSIA president said, “In general, the market is picking up and there is good scope for revival of MSME units, particularly those in Tamil Nadu.”

At present, the MSME units have been able to get orders for only 1.5 lakh metric tonnes per annum while around 450 units in and around Tiruchi can manufacture around seven lakh metric tonnes of fabricated components, the report said. 

The industries in Tiruchi are unable to retain their workforce even when it is considered as one of the best fabrication hubs in South Asia. Earlier, the MSME units had a workforce of around 40,000 direct workers and an equal number of service providers whereas there are only 6,000 employees left as of now. 

Only through intervention at the critical juncture can the MSME units be placed in a position to take up orders and create better employment opportunities for the nation’s growth, the letter said.

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BHELSIA has also marked copies of the letter to Ministers of Defence, MSME, Heavy Industries, and Railways, and Chairman and Managing Director of BHEL, the report added.  

Importantly, BHELSIA in September raised its concern over the sharp increase in power tariff by Tamil Nadu Generation and Distribution Corporation (TANGEDCO).

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