MSME units in Tamil Nadu trebled in last 10 yrs

The total investment soars from Rs 722 cr to Rs 8,751 cr

The number of micro, small and medium enterprises (MSMEs) in Tamil Nadu has more than trebled since 2003-04 - from 25,794 units representing an investment of only Rs 722.16 crore, to 83,348 enterprises as of February 28 this year, with investment soaring to Rs 8,751.54 crore.

According to the Fourth All India Census of MSMEs (2006-07), Tamil Nadu accounts for 14.95 per cent of the total number of operational MSMEs in India. Also, 15.24 per cent of India's micro enterprises are located in the state (the highest among all states), while 9.6 per cent of India's small enterprises (third highest among states) and 9.21 per cent of the country's medium enterprises (second highest) are located in Tamil Nadu.

To boost the sector, the state government has drawn up the Tamil Nadu Vision 2023, whose focus areas will be access to finance, technology and markets; a conducive regulatory and policy environment; and infrastructure availability. The vision document has suggested a strategy for effectively addressing the above issues through a combination of policy measures, skill development and infrastructure facilities.

Measures such as cluster development will also be adopted in implementing focused initiatives to make MSMEs competitive. The cluster development initiative will include both ancillary clusters, based on large mother industries, and stand-alone clusters. It has been planned to generate 1,500,000 more jobs during the Twelfth Five-Year Plan period in the state, according to Tamil Nadu's Rural Industries Minister P Mohan.

The minister also said for April-December 2012, Rs 9,409.44 crore and Rs 8,483.02 crore were sanctioned as credit to micro and small enterprises respectively, in the state.

The share of loans to micro enterprises in total loans to micro and small enterprises (MSEs) in April-December 2012 was 52.59 per cent, as against 39.56 per cent during the corresponding period of 2011.

Total loans given by commercial banks to MSEs in the state increased to Rs 62,682.65 crore as on December 31, 2012, from Rs 55,740.64 crore as on December 31, 2011, according to a policy note that Mohan tabled in the state Assembly.

Total loans by cooperative banks to MSEs in the state increased to Rs 2,504.09 crore as on December 31, 2012, from Rs 1,825.89 crore as on December 31, 2011. While speaking in the Assembly recently, the minister said of the 15 new industrial estates spread over 938.28 acres that the government had planned to set up in 2011-12 and 2012-13, two have been established in Rasathavalasu (in Tirupur district) and Venmaniathur (in Villupuram district). The remaining 13 industrial estates are in various stages of implementation.

Besides, the government has also identified 22 locations for the establishment of new industrial estates over a total area of 1,611 acres in the future, the minister said. The outlay for the state MSME department made in the Budget for 2013-14 was Rs 338.96 crore, compared to the revised 2012-13 Budget estimate of Rs 279.98 crore.

The MSME sector contributes 10 per cent of Tamil Nadu's gross state domestic product (GSDP), provides employment to 5,883,000 people and accounts for an investment of Rs 48,189 crore. The sector produces over 8,000 products, across the engineering, electrical, electronics, chemicals, plastics, steel, paper, matches, textiles, hosiery and garments sectors.

To encourage women entrepreneurs, five new industrial estates for women have been set up in the state - the first of their kind in the country.