Trichy: MSME units that were once abuzz and the backbone of Trichy’s economy are facing a slow death. Though the thermal power plant orders in the pipeline for Bhel Trichy offer hope of reviving the ancillary units, entrepreneurs are sceptical. There are issues such as the need to fix basic manufacturing cost for keeping MSMEs stable. With the industrial environment finally appearing conducive, entrepreneurs say the next MP will have a crucial role to play in changing their fortunes.
Trichy is an energy engineering manufacturing hub, but the number of fabrication and engineering units here declined from 650 in 2005 to 80 (active units) in 2024. Even the few surviving units have a debt to the tune of Rs 3 crore – Rs 5 crore each on an average. Fall in work orders from public sector undertakings (PSU) in the past 10 years pushed several units to shut shop and become non-performing assets. MSMEs that survived were desperate to secure orders and went on to produce components for much lower cost than the basic manufacturing cost. Later, they ended up in bankruptcy too.
Meanwhile, Covid-19 pandemic and soaring raw material prices further impacted the MSMEs. Recently, as Bhel secured orders for over Rs 1 lakh crore, the industrial environment is poised for a revival. “But, like the minimum support price (MSP) for agricultural produce, we need a basic price clause to be set for producing components for Bhel. Fixing a basic price will keep us stable,” V Kannan, president, Valavanthankottai industrial manufacturer’s association, said.
When MSMEs were closed, the workforce here migrated to other jobs. MSMEs said the employment capacity of Bhel ancillary units declined from 50,000 in 2011 to 10,000 in 2024. Besides, existing machinery and infrastructure require an upgrade to match industry 4.0 standards to avail fresh orders from PSUs. MSMEs said that the next MP must persuade the government to sanction special loans to capitalise on new orders in the pipeline.
“None of the PSUs is doing well, ancillary units are in distress. I will work to divert new work orders to help the local MSMEs,” Durai Vaiko, MDMK candidate for the constituency, told TOI. Meanwhile, flaunting proximity to ally BJP, AMMK candidate P Senthilnathan said he would work for increasing the per capita income of the people by focusing on industrial growth. AIADMK candidate P Karuppaiah opined that he would raise his voice for protecting the interests of MSMEs here.
