MSMEs Mentions Electricity Hikes In Coimbatore As Unbearable

MSMEs are opposing the electricity hikes in the Coimbatore. The hikes are contributing to a big portion of manufacturing costs. CODISSIA (Coimbatore District Small Industries Association) calls out a meeting for this issue. They mention that an increase in tariff hikes is not what they oppose. The main reason for opposition is an increase in the fixed charges. According to MSMEs in Coimbatore, the fixed prices are not this high in any other state. Thus, they are looking for solutions to the problem.

MSMEs Goes Against The Electricity Hikes In Coimbatore

MSMEs are going against the electricity hikes in Coimbatore. According to details, the MSMEs are having difficulty because of increasing hikes in the electricity rates. The electricity cost is 15% of the total production cost of engineering industries. While it is 35% in the case of foundries. It forces several MSMEs to stop manufacturing. The meeting against this action will place on Thursday.

It not only makes it difficult for MSMEs to survive but also difficult to compete in the market. The states like Gujarat have several benefits like subsidies on manufacturing for MSMEs. Thus, it becomes difficult for the Coimbatore MSMEs to provide the products at such a low cost that the MSMEs with subsidies enjoy. They also get a good margin because of subsidies which encourages them to work hard.

MSME demands are not fulfilled after the elections as well. The MSMEs state that CM M.K. Stalin promised to help the MSMEs post-election. The Small and Tiny industries (Tanstia) asked the CM of Tamil Nadu to do something for the reduction of fixed charges for LT and LT III-B. However, nothing much happened yet. They are all waiting for the response.

MSMEs are having a lot of trouble due to these hikes. The reduction in the fixed prices can make these MSMEs safe a lot. MSMEs’ concerns are right at the time. Thus, they are standing strong for their rights. The big companies and firms don’t face many issues because of high resources. However, those who have a little resources are not able to get over these hikes. It takes their business and impacts them badly.

MSMEs in Coimbatore are facing double challenges. Those from the central government like 45 days payment rules bringing them low orders and delayed payment issues still being there. Apart from that, they are facing hikes on the state level. Thus, there is an urgent need to address the issue to sustain the MSMEs in the area.