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R. Eswarraj

New release: The Union Minister of State for Labour and Employment, Mr Oscar Fernandes (second from left), releasing a magazine of the Chamber of Small Industries Association in Mangalore on Sunday. —

Our Bureau

Mangalore, June 1 Growth rate of eight to nine per cent can be maintained in the country, according to Mr Oscar Fernandes, Union Minister of State for Labour and Employment.

Inaugurating the Southern India MSME (micro, small and medium enterprises) meet, organised by the Chamber of Small Industry Association (COSIA) here on Sunday, he said that this rate can be achieved in spite of price rise in some sectors. Though the growth rate could go even high, double digit growth is doubtful as recession in western world may affect the investment scenario in the country.

Touching upon the issue of price rise, he said the country should be able to handle the situation. While the government can control price rise in commodities such as cement and steel, it cannot control the price of crude in the international market. Already prices of food items were coming down, he added.

“We are able to keep price rise at this level in India. In other countries, the price rise is even high,” he added.

Terming MSME sector as the backbone for country’s development, he said: “We want the country to become the economic power in the years to come. In such a situation, MSME sector plays a major role in the nation’s development.”

Stating that there should not be ‘inspector raj’ for MSME sector, Mr Fernandes said self-certification was good for the sector.

Speaking on the occasion, Mr Amulya Charan, Managing Director of Tata Power Trading Company Ltd, suggested mitigation plans such as pooling in of power generated by the captive units into grids and encouraging establishment of new and renewable energy sources for tackling power shortage.

Consumers are willing to pay higher price for power in some areas, provided there is no load-shedding. In such a situation, power available in the captive units should be pooled into the grid and sold. This model was initiated in Pune two years ago. Now, Thane in Maharashtra is coming out with such a scheme, he said.

On new and renewable energy units, Mr Charan said that these units can come up in shorter time. Once they come up, they can pump power into the grid.

With these mitigation measures, the country can find a solution to the problem of power, he added.

Mr M. Narendra, Chief General Manager of Corporation Bank, spoke on the occasion.

Eleven industries from States such as Andhra Pradesh, Goa, Karnataka, Kerala, Puducherry and Tamil Nadu were presented with COSIA Entrepreneurship Appreciation Awards on the occasion.

More Stories on : Economy | Karnataka

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