T M Anbarasan, Minister for Rural Industries chaired a meeting with representatives of MSMEs at SIDCO in Chennai.

T M Anbarasan, Minister for Rural Industries chaired a meeting with representatives of MSMEs at SIDCO in Chennai.

Ford India exit: Minister assures aid for MSMEs

Representatives of around 50 MSMEs, from Chennai and surrounding districts, took part in the meeting that spanned an hour.

T M Anbarasan, Minister for Rural Industries chaired a meeting with representatives of MSMEs at SIDCO in Chennai.
T M Anbarasan, Minister for Rural Industries chaired a meeting with representatives of MSMEs at SIDCO in Chennai.

CHENNAI: With an aim to assess the impact of Ford India’s exit on MSMEs, who have been supplying auto parts for more than two decades now, a meeting was chaired by Rural Industries Minister T M Anbarasan on Wednesday.

Stating the government would ensure the mitigation of  consequences on MSMEs due to the car manufacturer’s exit from India, the minister said all demands would be placed before Chief Minister  MK Stalin in next two days. When asked how feasible the demands are, the minister said that such an assessment would be made by top officials, including Chief Secretary Dr V Irai Anbu. Tax exemption, acquisition, easing bank loan process, addressing issue of job losses, compensation for MSMEs staring at a loss were some demands Ford India’s auto ancillary industries placed before the State government.

Representatives of around 50 MSMEs, from Chennai and surrounding districts, took part in the meeting that spanned an hour. “A big relief is that none of the companies are completely dependent on Ford India. Most of them (around 80 per cent) of the ancillaries have been supplying to other companies as well,” he said, adding that even the 20 per cent of the MSMEs have been supplying only 70-80 per cent of their supplies to Ford. Ravichandran, a consultant for an ancillary unit in Oragadam, urged the government to approach Mahindra & Mahindra to acquire Ford India and sustain operations.

A representative from another ancillary, supplying fuel and brake systems to Ford, said they have been significantly dependent (80 per cent supplies) on Ford and sought a resolution to handle a situation in which 200 out of 300 employees were at the brink of losing jobs.   Another unit asked the government to find a resolution for  the raw materials and all finished products lying in the inventory.

Several demands
Tax exemption, acquisition, easing bank loan process, addressing the issue of job losses,  compensation for MSMEs starting at a loss were some demands Ford India’s auto ancillary industries placed before the State government

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