The Hindu Business Line : `SSI investment limit has become irrelevant'

MR R. SUBRAMANIAN, Secretary-General, Madras Chamber of Commerce and Industry, addressing IFMR students as part of the Business Line Club lecture series.

Chennai , Dec. 10

Small-scale industries have an investment limit. This limit is so low that they cannot access good technology or cannot employ latest software, which would help improve their performance.

The investment limitation has become irrelevant and only helps them to die, said Mr R. Subramanian, Secretary-General, Madras Chamber of Commerce and Industry. He was addressing students of the Institute for Financial Management & Research as part of the Business Line Club lecture series.

New ideas

Every subject of irrelevance at one point of time made sense, but with the passage of time and emergence of new ideas, a shift took place and the priorities changed and what made sense yesterday became irrelevant today.

It is this which needs to be understood in the correct perspective, and if one does that, he will understand the whole process of reforms, he pointed out.

Free power

Another concept that has become irrelevance is the quality of power and service of power companies.

Free power to villages and agriculture is a threat to private investment in power generation.

Already the State power distributors are the biggest defaulters to the central power generation companies.

If this is the case, worst is yet to come and private participation cannot be expected.

A claim is made that agriculture sustains most of the people. If India produces about 250 million tonnes of food grains, one would be surprised to learn that this is done in a few States and bulk of the produce is accounted for by a few individuals.

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