The Hindu Business Line : Small-scale entrepreneurs in TN protest against raw material price surge

The members of the industry under the aegis of State forum — Tamil Nadu Rural and Micro Entrepreneurs Association — held a day-long fast here to attract the attention of the Centre.

According to Mr A. S. Kannan, President of the association, the rural and micro enterprises that use plastic, steel, pig iron, aluminium and copper as raw material are hit by the the prices of these commodities. The rise ranges between 40 and 60 per cent in most cases, he said.

While protesting against export of steel/metals and their raw materials from the country, Mr Kannan also urged the Centre to extend freight subsidy for these raw materials to provide a price cushion for these units.

The scheme of credit guarantee up to the limit of Rs 50 lakh announced for the micro and small enterprises through banks is yet to be implemented.

The protestors were also demanding the Tamil Nadu government create micro industrial estates in key industrial cities and allot work-sheds to tiny entrepreneurs in such exclusive industrial estates so that these units can shift out of the crowded residential areas.

Urging the government to offer concessional electricity to micro units on the lines given to the power loom weavers, the association called upon the Tamil Nadu government to take up with the Centre a scheme of loan waiver for the micro enterprises as many of the small and tiny units which have outstanding loans with cooperative/rural banks are unable to repay these loans due to adverse working conditions.

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