The Confederation of All Entrepreneurs Associations on Friday expressed its expectation that the new government to be formed in Tamil Nadu would address the long-pending demands of micro, small and medium enterprises (MSMEs). These demands include reducing power tariffs and easing tax burdens.
Key Demands for Industrial Growth
In a statement, M Jayapal, president of the Recycled Textile Federation and state general secretary of the Tamil Nadu All Entrepreneur Federation, emphasised that such measures are crucial for industrial growth, employment generation, and higher tax revenues. He noted that the state is home to approximately 45 lakh MSMEs, employing more than two crore workers.
Power Tariff and Debt Concerns
The federation called on the new dispensation to allocate an additional Rs 3,800 to Rs 4,100 crore annually to the electricity board to offset the impact of tariff hikes on industries. It also raised concerns about the state's rising debt burden. According to the federation, Tamil Nadu's debt increased from Rs 55,000 crore in 2006-11 to Rs 5.65 lakh crore in 2021-26. If the current trend continues, it could cross Rs 11 lakh crore in 2026-27. The state is reportedly paying nearly Rs 200 crore a day in interest.
Welfare Promises and Fiscal Challenges
The federation warned that fulfilling welfare promises made ahead of the assembly election could require additional borrowings of more than Rs 1.40 lakh crore annually, on top of existing commitments such as subsidies, welfare schemes, and interest payments on previous loans.
MSME Contribution and Specific Demands
According to the federation, MSMEs contribute nearly Rs 74,000 crore through state taxes and Rs 22,000 crore through direct taxes every year. Among its key demands, the federation sought a 50% cut in fixed charges for low-tension consumers, lower demand charges for high-tension consumers, and a waiver of network and wheeling charges for solar and wind power used by industries.
