Small businesses at risk of extinction: MP PR Natarajan urges Union Industries Minister to intervene immediately

Coimbatore: As the small businesses in Coimbatore district are facing several problems, Coimbatore MP PR Natarajan has urged the central government to intervene immediately to protect these factories, which provide employment to millions and save them from the threat of extinction through a letter.

In his letter he said, "In the discussion with the entrepreneurs that took place last week at the Coimbatore District Committee Office of the Marxist Communist Party. Sitaram Yechury, All India General Secretary of the Marxist Communist Party participated in the event which was chaired by me. In a letter to Union Industry Minister Nitin Jayaram Gadkari, I have summarized the suggestions put forward by the entrepreneurs. Coimbatore is the second largest city in Tamil Nadu after Chennai. This is an area with a lot of industries including textile machinery, motor, pump, plastic, wet grinder. Thousands of these factories are producing and supplying spare parts for the above industry. These small factories directly employ over five lakh workers and indirectly employ millions of workers. Recently these factories have been facing various difficulties. In a discussion with entrepreneurs about this, they came up with advice on how to keep the industry afloat. I bring to your attention the suggestions put forward by the entrepreneurs.

The price of raw materials is increasing day by day. The price of raw materials has risen by 30 per cent before and after the coronavirus infection. In particular, the price of amino gas alone has risen by 166 per cent. As the price of raw materials continues to rise sharply in a very short period of time, the entrepreneurs who run the factory are unable to make even the minimum profit.

He added that, "Many companies will close if these price hikes are not controlled. Therefore the increase in the price of raw materials should be brought within the price of what was fixed before the coronavirus. The central government should set up a monitoring committee to control the rise in prices of raw materials. We need to ensure that the prices of raw materials remain the same for about a year. GST for small businesses ranges from 12 to 18 per cent which is too much. Thus large scale industries are being affected and only five per cent of the GST must be levied. Central Government should immediately set up a resolution committee to resolve the GST irregularities."

"Pumps, motors, grinders, etc. manufactured by small businesses are being modernized day by day abroad. Overseas people are immediately absorbing this technology and engaging in production. But such a situation does not exist here and it is a matter of concern that we are not in a position to compensate for foreign manufactured goods. Therefore, a training center should be set up in Coimbatore for learning new technology."

He pointed out that, "There is a problem in getting loans from banks for small businesses. Although nationalized banks provide loans, most banks have great difficulty in obtaining loans for small businesses. Therefore, separate banks should be set up only for small businesses. The debt repayment period should be increased to 15 years as small businesses face great difficulty during this coronavirus period. The interest on the loan should be reduced to 8 per cent. Two per cent of this should be subsidized by the government. Similarly, after receiving the job orders and completing the work, you have to ensure that the amount is paid within 15 days. We need to create a specialized market center to market small industrial products and to create a workshop. Housing facilities or hostels should be set up near the workplace for workers to stay. A separate ministry to diagnose and solve problems for small businesses must be set up. These industries should be subsidized on electricity bills or be provided with free electricity up to one thousand units."

He in his letter requested to consider the above recommendation to save small businesses.