The Micro, Small and Medium Enterprises (MSMEs) in Tamil Nadu have appealed to the State and Central governments to relax the mandatory norms that they need to adhere to for government orders.
Chief Secretary Shalini Rajneesh exploring exhibits displayed at Global MEME Conclave in Bengaluru on Friday.
| Photo Credit: special arangement
Micro, Small, and Medium Enterprises (MSMEs) are the true engines of inclusive and holistic development, said Shalini Rajneesh, Chief Secretary.MSMEs not only contribute to economic output and exports, but more importantly, they generate employment opportunities, encourage innovation, strengthen local economies, and bring opportunities closer to people, she said at a three-day Global MSME Conclave that began here on Friday.Ms. Rajneesh said that MSMEs are playing a significant role in establishing competitive and resilient economic systems during an era when the global economy is being reshaped by technology, sustainability, and supply chains.She added that digital commerce has given opportunities to even small-scale enterprises to compete globally while providing them with appropriate technology, market accessibility, and support. “This presents immense opportunities for our MSMEs to scale up, embrace innovation, and become part of global value chains,” she further said.Reiterating the Karnataka government’s commitment towards the creation of a transparent, technologically competent, and investor-friendly business environment, she stated the future of MSMEs would depend upon their ability to adopt digital platforms, automation, Artificial Intelligence, Industry 4.0 solutions, and e-commerce ecosystems.Further, she highlighted the role of the Center of Excellence in Artificial Intelligence for the betterment of entrepreneurs, and the collaboration with banks alongside restructuring of RSETTI institutions would enhance digital governance and capacity building.“Our youth are our greatest strength. By aligning skill development programs with industry requirements, we can create a future-ready and globally competitive workforce,” she said.She also highlighted the government’s initiative of giving importance to supporting women entrepreneurs, rural enterprises, and first-generation business owners to ensure inclusive and equitable growth. “Let us take MSMEs from survival to growth, from local markets to global markets, and from dreams to achievements,” she said Published - May 29, 2026 10:22 pm IST
A. Revanth Reddy
| Photo Credit: SUSHIL KUMAR VERMA
Chief Minister A. Revanth Reddy-led State government has embarked upon yet another reform aimed at strengthening the Panchayat Raj institutions.The government has decided to amend Section 70 (3) of the Telangana Panchayat Raj Act 2018 allowing gram panchayats to deposit their own source revenue into a separate bank account instead of depositing it into the treasury. The Chief Minister announced the decision aimed to revive the old system which was allegedly diluted by the previous government adversely affecting the independence of the gram panchayats.Simultaneously, he directed the officials concerned to ensure that salaries to over 50,000 staff of village panchayats were credited promptly on the first day of the month. “The gram panchayat staff should also receive salaries on the first of every month like the IAS officers,” he said.The State government would release ₹50 crore every month to the Panchayat Raj department enabling it to pay salaries to the staff in time. He instructed the officials to ensure timely payment of salaries to all staff, including those engaged on contract and outsourcing basis. “Delay of even a single day will not be tolerated,” he averred.Mr. Revanth Reddy suggested changes in the mode of payment of pensions to beneficiaries asking officials to credit the amount into the beneficiaries accounts instead of disbursing it through postal department. Payment of pensions should be streamlined through voter ID, SEEEPC data to ensure that only eligible recieved the benefit. With the government deciding to sanction two lakh new pensions, steps should be taken to give priority to single woman beneficiaries. Published - May 26, 2026 09:54 pm IST
The Micro, Small and Medium Enterprises (MSMEs) in Tamil Nadu have appealed to the State and Central governments to relax the mandatory norms that they need to adhere to for government orders.Sudhakar Sundaravel, national head of the MSMEs domain of the All India Congress Committee Professional Congress, said the State government should extend delivery timelines for the purchase orders it has issued to four months without invoking the liquidated damages clause. The Centre has issued similar relief measures for its Departments and PSUs.He explained that the 47-lakh registered MSMEs in the State are severely impacted by the geo-political tensions and war situation involving the US–Israel and Iran as there is a steep increase in fuel prices, the Indian rupee is weakening, the global supply chain is disrupted, and raw material prices have increased abnormally.A large number of the MSMEs supply to Central and State governments and public sector undertakings. “The present situation has not only caused substantial input cost escalation, but has also disrupted raw material availability and logistics, thereby affecting production schedules and delivery commitments.As a result, many MSMEs are unable to execute purchase orders within the contractual delivery timelines despite their sincere efforts,” he said.M. Karthikeyan, president of the Coimbatore District Small Industries Association, said the MSMEs face several challenges because of the war. For instance, the repayment of security deposit is extended to 36 months. If a unit has an annual order for ₹20 crore, it gets 5% of the amount as working capital. The 1% of the project cost that is taken as security deposit will be returned not immediately after execution of the order, but after three years, leading to liquidity issues for the MSMEs.Similarly, there are MSMEs that import certain raw materials for some special orders and the supply of these materials is stopped now. So, they are struggling to complete the orders on time. The government should look at these practical difficulties that the MSMEs face, Mr. Karthikeyan said.Mr. Sundaravel also sought measures to control of raw material price escalation, reduction in power tariff, timely release of payments for supplies made, easy availability of affordable finance, and reduction in finance costs. Published - May 26, 2026 07:53 pm IST
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