City Union Bank MD sees good potential for MSMEs in solar energy sector

The renewable energy sector can make a lasting impact in the growth of micro, small, and medium enterprises (MSMEs) in Tiruchi region, said N. Kamakodi, Managing Director and Chief Executive Officer of City Union Bank, here on Thursday

The renewable energy sector can make a lasting impact in the growth of micro, small, and medium enterprises (MSMEs) in Tiruchi region, said N. Kamakodi, Managing Director and Chief Executive Officer of City Union Bank, here on Thursday.

Speaking at a session on MSME growth insights and leveraging government schemes organised by the Confederation of Indian Industries (CII), Mr. Kamakodi said the textile sector in the country, especially in Coimbatore and Tiruppur region, made a real turnaround by leveraging the subsidy component over the last two decades. Many textile units had sprung up by tapping the opportunities and the sector had come to stay.

Similarly, the governments had been pushing for natural energy, especially solar power. It had a good potential to be a praiseworthy field in the next one or two decades. While foraying into the field, the engineering industries could focus on reducing electricity expenditure by tapping solar power.

Mr. Kamakodi said there were days when the MSMEs in Tiruchi revolved around the order of the Bharat Heavy Electrical Ltd. (BHEL). However, the entrepreneurs, who encountered a crisis, had switched their attention to the demands from the wind mill energy sector. The Tiruchi cluster had a potential to expand their wisdom.

In the post COVID-19 period, he said there had been slackness in investment to expand the business or entrepreneurs as they primarily wanted to ensure a feel good factor in their units or business ventures. There would be no worst scenario for the industrial sector than the COVID-19 period. In spite of testing time, most MSMEs had stabilised. Hence, the entrepreneurs could go for expansion.

Mr. Kamakodi said financial discipline was a key for any venture. In his experience, the entrepreneurs, who strictly used the loan only for the purposes of which the loan was availed, had mostly been doing well. If they followed the discipline, they could taste success.

M. Ramalingam, general manager, District Industries Centre, said that Tiruchi had an excellent road, air, and train connectivity with strong human resource. However, the facilities were not utilised well. Engineering industries in Coimbatore had adapted to the emerging market and they had become a world supplier of machines. The technique could be replicated in Tiruchi as well.