Tamil Nadu MSME Policy Statement Disappoints Industry: Infrastructure Omitted

The Madurai District Tiny and Small Scale Industries Association (MADITSSIA) has expressed disappointment over the policy statement made by Tamil Nadu Minister for MSME P. Mathan Raja in the Legislative Assembly. In a statement, MADITSSIA president V. Senthilkumar noted that while some existing incentives were reaffirmed, several crucial demands from the sector were overlooked.

The association pointed out that the government only reiterated the existing 50% subsidy for infrastructure facilities needed to set up private industrial estates. However, the industry had been demanding that the government fully provide 100% infrastructure facilities for such estates, and this request was omitted from the announcement.

On the power front, there was no reduction in fixed charges for electricity, nor was the solar net-metering or set-off facility extended to business enterprises in the manner available to residential consumers. MADITSSIA also expressed disappointment over the absence of any announcement or financial allocation for the proposed Madurai–Thoothukudi industrial corridor, a project long seen as vital for the region's industrial growth.

The association had also sought a 25% subsidy for MSMEs to install solar energy systems, which it described as essential for small enterprises to access clean energy technologies and research. This too was missing from the minister's statement.

Despite these concerns, MADITSSIA welcomed certain positive measures announced in the policy statement. The allocation of ₹600 crore towards clearing long-pending applications submitted under the investment subsidy scheme was particularly appreciated. The association said this would provide relief to many entrepreneurs who have been waiting for their dues.

The introduction of the Tamil Nadu Single Window Portal for issuing licenses was also welcomed, with Mr. Senthilkumar noting that it would motivate entrepreneurs by simplifying regulatory processes. He further welcomed the appointment of credit counsellors in every district, saying this would help MSMEs access credit more easily.

The creation of an export assistance desk at the District Industries Centre (DIC) was seen as a significant step. The association believes this would promote direct export by small units to various countries, reducing their dependence on intermediaries.

MADITSSIA also appreciated the financial assistance of ₹25 lakh provided under the Tamil Nadu Startup Smart Seed Fund scheme, which is aimed at helping startups during their initial growth stages. The association expressed hope that the government will formulate a new, comprehensive MSME policy tailored to the current needs of the sector, given that many challenges remain unaddressed.

The industry body's response reflects a broader sentiment among small-scale manufacturers in the state, who are looking for more substantial government support in infrastructure, energy affordability, and regional industrial development. As Tamil Nadu seeks to strengthen its MSME ecosystem, the gaps highlighted by MADITSSIA may serve as important inputs for future policy revisions.