MSME jewellery units appeal to T.N. government to prioritise them for government orders

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Jewellery manufacturers in Coimbatore have expressed disappointment that the micro, small and medium-scale enterprises (MSMEs) here were not given priority for the gold ring scheme of the Tamil Nadu government.

“There are 40,000 micro units in Coimbatore engaged in making gold jewellery, employing at least four workers in each. The tender is for 4.41 lakh rings of one gram each. While the government will give the gold, the supplier should bear the making charges, hallmarking cost, packing charges, transport, and insurance. The bidder should quote ₹450 to ₹700 for a piece. However, the final amount of one paisa for one ring given by the successful bidders cannot be matched by any of the MSMEs,” said Kamal Hassan, president of the Coimbatore Goldsmith Association.

Though, according to the Central government rules, Udyam-registered MSMEs need not submit MODs, the Tamil Nadu government tender specified among the norms a minimum turnover of ₹250 crore and ₹3 crore MOD to qualify as a bidder. So, the priority was not for MSMEs, he said.

B. Muthuvenkatraman, president of the Coimbatore Jewellery Manufacturers Association, said none of them had bid for the scheme.

Jewellers in the city said the total quantity of gold that will be used for the scheme will be 441 kg, which is not very high given the volume of gold jewellery made in Coimbatore. However, the rate quoted by the two major bidders who have won the tender cannot be matched by any of the MSME units here. Further, the units in Coimbatore are apprehensive of government tenders because they fear delayed payments and the process involved.

“We hope the suppliers will outsource the orders to the MSME units here as Coimbatore is one of the largest jewellery making centres in the country. The design is simple and it does not require any special equipment or skill. It can be easily made by the units in Coimbatore,” said one of the jewellers.

The government should give priority to the MSMEs in Coimbatore for its next gold-related tenders, they added.

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