Coimbatore: Member of Parliament P R Natarajan has written to Union minister Nitin Gadkari, requesting him to safeguard micro, small and medium enterprises (MSMEs) in the district that are on the verge of collapse.
Prices of raw materials, especially pig iron, steel and scrap, have gone up by 30%, the letter said. “The abnormal price rise has sounded the death knell for MSMEs. The government should bring down the prices to the pre-Covid level and constitute a price monitoring committee.”
“MSMEs are also burdened by the goods and services tax. MSME products should be brought under the 5% slab and a GST rectification committee should be formed. Possibilities of exempting small and micro industries from GST should also be explored,” Natarajan said.
“Foundries and companies making pumps and motors undergo frequent technological upgradation. Due to lack of upgradation, MSME products are not on par with international products. The government should set up a technological training centre and industrial training institutes to produce skilled workers. The industries have been struggling without bank assistance and proper credit flow. The government should provide loan to these industries at 8% interest rate to a period of 15 years. The government should also consider providing either subsidy for electricity or free electricity up to 1,000 units,” he added.