MSME Strike: Stakeholders plan hunger strike in Chennai on Oct 16

MADURAI: Many industrialists and business stakeholders affiliated to Tamil Nadu Industries Electricity Consumers Federation staged a hunger strike at Palanganatham in Madurai on Monday to protest increase in electricity charges. RM Lakshminarayanan, president, MADITSSIA, took part.

J James, president of the Federation, who took part in the hunger strike, said several micro, small and medium enterprises are reeling from the impact of hike in electricity consumption charges especially during morning and evening peak hours.

Many units were forced to shut down because of the unprecedented increase in the electricity tariff.

The one-day statewide token strike by the industrialists caused job loss to 80 lakh workers and resulted in production loss amounting to Rs 9,000 crore and Rs 2,500 crore as loss of revenue to the government. Around eight lakh MSME units remained shut across the state, he said.

ALSO READ: 60,000 MSME units remained shut for a day in North TN

Despite repeated demands from the stakeholders through similar protests in Coimbatore, Tirupur, Erode on September 9 and emails and speed posts en masse to Chief Minister MK Stalin and Electricity Minister Thangam Thennarasu on September 14 for reducing the electricity charges, which increased by 430 per cent, the state government did not listen to our concerns.

There were big expectations among the stakeholders from the CM’s statement for reduction in electricity charges, but it only led to more disappointment.

If the government did not respond to this hunger strike, entrepreneurs in all districts across the state would wear black badges and meet Collectors on October 9 for a solution to electricity concerns and if the demands were not met, then members of all federations of trade and industry would go on hunger strike in Chennai on October 16, the president said.

R Gopi Palaniappan, joint secretary, Knit Cloth Manufacturing Association, Tirupur, said knitwear manufacturing is a continuous process and units require electricity round the clock and to offset increasing peak hour cost pressure, gensets were made operational as an alternative.

Despite this, manufacturing costs increased by 25 per cent. A year ago, Rs 3,000 was paid as electricity fixed charge, but now such charge has skyrocketed to Rs 17,000, he added.

Archana new MSME Secretary

In a minor bureaucratic reshuffle, the state on Monday transferred state Industries and Commerce secretary and appointed her as the secretary of state MSMEs Department. An order issued by Chief Secretary Shiv Das Meena said that Archana Patnaik, Industries Commissioner and Director of Industries and Commerce is transferred and posted as secretary to government, Micro, Small and Medium Enterprises Department, replacing Arun Roy. L Nirmalraj, Director of Geology and Mining, has been transferred and posted as Industries Commissioner and Director of Industries and Commerce.

Commissioner of Civil Supplies Pooja Kulkarni has been transferred and posted as commissioner of Geology and Mining. Har Sahay Meena, Principal Secretary/Commissioner of Rural Development and Panchayat Raj has been transferred and posted as Principal Secretary/Commissioner of Civil Supplies and Consumer Protection the order said.

Total in Ranipet; owners sceptical of today’s meet

Ranipet District Small and Micro Industries Association, Ranipet District Tiny and Small-scale Industries Association, Kamaraj Micro Industries Association, BHEL Ancillary Association, BHEL Suppliers Association, Arakkonam SIDCO Industrial Estate Manufacturers Association, Ranipet Saw Mill Owners Association and the Amoor Rice and Paddy Merchants Association members participated, in the one-day token strike sources said.

A visit through the SIDCO industrial estate in Ranipet revealed all industries remaining closed while the owners used the time to catch up with their pending accounts work.

In this connection, industries director Archana Patnaik has called for a meeting with the industrialists from Hosur, Erode, Chennai, Coimbatore, Tiruchy, Thoothukudi and Salem at the Chennai SIDCO Corporation office under the chairmanship of MSME Minister Thangam Thennarasu on Tuesday, sources said.

However, miffed entrepreneurs said, “We expect nothing to come out of the meeting as already we have attended three meetings with the present Minister and two more with the then Minister Senthilbalaji. There is no proper planning and outcomes of the regulatory commission are not adhered to as the state representative does not say much.”

Western region units lose several crores

Over 50,000 Micro, Small and Medium Enterprises (MSMEs) in Coimbatore region downed shutters against power tariff hike by the state government resulting in a production loss of several crores on Monday.

Black flag was hoisted on clusters of industrial units located in Kurichi, SIDCO, Ganapathy and Edayarpalayam areas across Coimbatore. The industrialists also took out a rally to the Collectorate and as well as to the Tangedco office to submit petitions seeking a roll back of the power tariff hike.

They claimed that industrial units would be forced to shut down permanently if the hike is not revoked.

As many as 352 coir units spread over in Pollachi and its surrounding areas halted work causing a business loss worth over Rs 10 crore. “Coir units are levied peak hour charges, even if they do not function during the monsoon.

Already, the coir units are struggling to survive due to poor global economic conditions. More than one lakh workers were rendered jobless and Rs 10 crore worth business has been hit due to strike,” said Sudhakar, president of Coir Pith Manufacturers Association.

In Erode, over 20,000 MSMEs downed shutters causing a loss in business for Rs 500 crore. Several sectors, including oil mills, textile units, concrete block manufacturing units and industries took part in the protest.

Also, around 3,000 power-looms located largely in Perundurai and other areas halted work. In Tirupur, more than three lakh workers were left without work as the textile sector stopped work causing a production loss of Rs 150 crore.