GST Impact: Thousands to lose jobs as Tamil Nadu industries face closure | WeForNews | Latest News, Blogs GST Impact: Thousands to lose jobs as Tamil Nadu industries face closure – WeForNews | Latest News, Blogs
Connect with us


GST Impact: Thousands to lose jobs as Tamil Nadu industries face closure




Chennai, June 9 : Thousands of workers employed in small and medium industries in Tamil Nadu are facing the danger of losing their  jobs due the various reasons including the implementation of Goods and Services Tax (GST),a government report has said.

According to the Policy Note 2018-19, tabled in the Tamil Nadu Assembly, the number of registered MSME units in the state came down to 2,17,981 units last fiscal from 2,67,310 units in 2016-17.

Listing out the reasons for the closure of MSME units in the state,Industry officials cite delayed payment by corporates; issues connected to GST; lack of orders; and shunning by banks and others.

In addition, the industrial investment climate is also not favourable in the state with several big industrial projects having gone to Andhra Pradesh in the recent past.

The state government in its report has mentioned  that  the Micro, Small and Medium Enterprises (MSME) have reduced by 49,329 units while employment in the sector has gone down by 5,19,075 persons during 2017-18.

The number of persons employed in the MSME sector came down to 13,78,544 in 2017-18 from 18,97,619 persons in 2016-17.

The investment in the MSME sector too, fell down to Rs 25,373.12 crore in 2017-18 from Rs 36,221.78 crore.

The fall in numbers is drastic and was never seen in the MSME sector in Tamil Nadu.

According to the Policy Note, out of the 10,073 MSME’s that signed a Memorandum of Understanding (MoU) with the state government at the Global Investors Meet in 2015, as on March 31, a total of 5,358 enterprises have started production, with an investment of Rs 6,182.03 crore.

“Delayed payment by big corporates for the goods supplied is a major issue faced by the MSME sector. Further the drying up of orders, procedures connected with the GST are some of the major hurdles faced by the MSME units,” K. Gopalakrishnan, Managing Partner, Trans Gears and a past President of Tamil Nadu Small and Tiny Industries Association (Tanstia) told IANS.

He also said the real estate prices have gone up to such a level that entrepreneurs will not be able to get a decent return on their investment.

“One of the major problems is the attitude of the bankers. Laden by non-performing assets (NPA), the bankers are avoiding lending to MSME units. In addition, they also demand collateral for loans even though the schemes do not insist on that,” Gopalakrishnan added.

According to him, there are several units that keep their shutters open without activity.

Terming the closure of 49,329 units as a major achievement of the AIADMK government in the state PMK founder S. Ramadoss said the closure and the reduction in the employment numbers in the MSME sector in last one fiscal is a very serious issue and cannot be brushed aside.

“During the last 12 years the sector has not seen such a large scale closure of MSME units,” Ramadoss said.

Citing the absence of major industrial investments Ramadoss alleged that corruption in the government is one of the reasons for the investors to shun Tamil Nadu and locate their units to other states.

He said neighbouring Andhra Pradesh has attracted mega investments to the tune of Rs 25,000 crore from industries like Kia Motors, Bharat Forge, Ashok Leyland, Apollo Tyres and others.

“In 2017, Tamil Nadu got investments worth just Rs 1,574 crore,” Ramadoss said.

The absence of new investments in turn impact the MSME units and others as there would not be any fresh orders/clients to cater to.

According to the Tamil Nadu government investment proposals worth about Rs 45,000 crore are under finalisation stages and MoUs for these projects would be signed soon.

While the major chunk of the proposed investments consist a petroleum refinery projects worth Rs 28,800 crore, the other projects include an automobile manufacturing (Rs 2,500 crore), glass and glass fibre manufacturing (Rs 2,000 crore), two- wheeler manufacturing plant including research and development (Rs 1,000 crore), four auto-component projects (Rs 1,800 crore) and others.


NTPC synchronises one more unit of 3,300 MW power plant in Bihar with grid

The power producer has been setting up five units with 660 MW capacity each, spread across 3,200 acres of land at Barh in Patna district



Power Grid Failure Nine Minutes

State-run NTPC Ltd on Sunday said it has successfully synchronised a 660-MW unit of its supercritical thermal power plant in Bihar with the grid, which would help the commercial generation of electricity from it.

The power producer has been setting up five units with 660 MW capacity each, spread across 3,200 acres of land at Barh in Patna district.

The construction work of three units of stage-I of the project was delayed due to “contractual, execution and timeline issues” with Russian firm Technoprom Export which was supposed to develop them, while two units of stage-II (2×660 MW) of Barh STPP have already been commissioned and are presently under operation, an official said.

“The first unit of 660 MW of stage -I of Barh plant was successfully synchronised with the grid at 7.32 am today. The plant has achieved desired capacity,” he said.

The construction of the Barh stage-I was initially awarded to the Russian firm but the contract was later terminated due to delay of the work schedule given by the NTPC, he said.

The successful synchronisation would pave the way for commissioning of the unit, the official said.

The remaining two units of stage-I of NTPC-Barh would be made operational by the end of March 2022, he said.

Under the synchronisation process, the 660-MW unit was connected to the grid to see the load factor and to ensure that all other aspects of it were working correctly.

Presently, Bihar is getting 1,198 MW of power from the two units of stage-II and will get additional 1,025 MW from three plants of stage-I, he said.

NTPC is supplying 4,248 MW of power to Bihar from its various plants, he added.

Continue Reading


India-Pak troops exchange fire along international border in Jammu and Kashmir’s Samba

No one was injured in the firing which started around 11.45 pm on Saturday in Mangu Chak Border Outpost (BOP) area of Ghagwal secto



Indian Army Kashmir

Indian and Pakistani troops exchanged fire for nearly 30 minutes after the Border Security Force (BSF) picked up suspicious movement along the International Border in Samba district of Jammu and Kashmir, officials said on Sunday.

No one was injured in the firing which started around 11.45 pm on Saturday in Mangu Chak Border Outpost (BOP) area of Ghagwal sector, the officials said.

They said BSF troops deployed at BOP Mangu Chak observed movement of three to four persons near Pakistani post Pir Bunker and opened fire after they were seen moving towards this side under the cover of darkness.

Pakistani Rangers retaliated and the exchange of small arms firing between the two sides continued for about half-an-hour, the officials said, adding the suspiciously moving persons returned to Pakistani side amid the firing.

A BSF official confirmed the incident and said a massive search operation was launched early this morning to sanitise the area.

The search operation is on but no incriminating material has been recovered so far, the official said.

There has been spurt in airdropping of weapons by drones and smuggling of narcotics along the IB and Line of Control (LoC) amid frequent ceasefire violations in Jammu and Kashmir over the past few weeks.

Continue Reading


To avoid overcrowding Railways to run 6 more local trains, 2 ladies special

At present 500 special suburban services are being operated by Western Railway for essential services staff



Mumbai Local Train

In order to maintain social distancing and to avoid overcrowding, Western Railway has taken the decision to increase the number of daily special suburban services by adding 6 more services including two Ladies Special trains from Monday.

500 special suburban services were being operated by Western Railway for Essential Services Staff as notified by the Government of Maharashtra. To this, 6 more trains are being added in order to bring flexibility in transportation.

According to an official press release, the increased 6 services have been added between Virar- Churchgate sector. Out of the 6 services, 3 services will be in UP direction from Virar on Slow line and 3 services will be in the DOWN direction towards Virar on Slow line. The 2 Ladies Special services will be run during the morning and evening peak hours between Virar and Churchgate stations in both UP and DOWN directions.

It’s worth mentioning that after complete closure due to the COVID-19 lockdown since March 23, 2020, Western Railway on the request of Govt of Maharashtra had commenced the selected services of special suburban trains from June 15 on the Mumbai Suburban section. The services were gradually increased for the convenience of passengers.

The latest increase was implemented from 21st September 2020, when the total services were increased from 350 to 500 by adding 150 more services over Western Railway’s suburban section. Considering the present scenario of the pandemic, the special suburban trains are regularly sanitized & cleaned to upkeep proper hygiene.

All commuters as permitted by the Maharashtra government, are requested by Western Railway to follow social distancing norms and wear a mask while travelling in special trains.

Continue Reading

Most Popular

Corona Virus (COVID-19) Live Data

COVID-19 affects different people in different ways. Most infected people will develop mild to moderate illness and recover without hospitalization.