More than 900,000 MSME (Micro, Small, and Medium Enterprises) units in Tamil Nadu participated in a strike to protest against the state’s electricity tariff hike. The industries are dissatisfied with the government’s response to their demands and plan to escalate their protests. This includes wearing black badges and submitting memoranda to district collectors on October 9, as well as staging a hunger strike in Chennai on October 16.
The conflict between industries, particularly MSMEs, and the state government arose after the government increased electricity tariffs last year. Industry representatives have been urging the government to reconsider this tariff hike, but no action has been taken so far. The one-day strike aimed to draw the attention of the chief minister for intervention.
As part of state-wide stir, Micro, Small and Medium-scale Enterprises (#MSME) units at Ariyamangalam industrial estate in #Tiruchi
went on strike on Monday, to draw the attention of the #TamilNadu govt. on the impact of high power cost.🎥 & 📸: M. Moorthy / The Hindu pic.twitter.com/N13VrPAcP6
— The Hindu – Chennai (@THChennai) September 25, 2023
According to J James, coordinator of the Federation of Coimbatore Industries Associations (FOCIA), and president of the Tamil Nadu Association of Cottage and Micro/Tiny Entrepreneurs (TACT), the strike resulted in a production loss of approximately ₹9,000 crore and a revenue loss of ₹2500 crore.
Around 50,000 MSME units in Coimbatore district alone participated in the strike and have decided to continue protesting until their demands are met.
பல்வேறு கோரிக்கைகளை வலியுறுத்தி கோவையில் தொழில் துறையினர் கதவடைப்பு போராட்டம்#Industry #observeslockout #MSME #Strike #CoimbatoreNews #Coimbatore #SimpliCityCoimbatore pic.twitter.com/yjLYYYHPtz
— SimpliCityCoimbatore (@simplicitycbe) September 25, 2023
Regarding electricity charges, Chief Minister MK Stalin has directed officials to adjust MSMEs’ electricity loads without charges four times a year, according to a senior TANGEDCO official. But there has been no official order on this yet. Addressing other demands of MSMEs requires approval from the Tamil Nadu Electricity Regulation Commission.
V Govindappan, vice president of the South India Hosiery Manufacturers Association (SIHMA), expressed concern about the new EB charges, particularly their impact on small MSME units, causing financial challenges during nighttime shifts. As a protest, approximately 7,000 commercial units in various categories such as knitting, compacting, bleaching, dyeing, screen printing, and stitching closed their operations for the day in Tiruppur.
Furthermore, around 60,000 small units in Chennai and northern districts, including Kancheepuram, Chengalpattu, Tiruvallur, Ranipet, and Vellore, participated in the strike. R Ganesan, president of the Tamil Nadu Micro and Small Garments Manufacturers Association, reported that about 1,700 garment units have closed in recent years due to various issues, including high power costs, labor shortages, and reduced orders. In Madurai, all industries associated with the MADITSSIA (Madurai District Tiny & Small Scale Industries’ Association) held a hunger strike on Monday at Palanganatham.
Not just for commercial establishments, even residents have been shocked with exorbitant electricity bills.
(With inputs from The New Indian Express)
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