Mumbai, August 25, 2022: In the Regional MSME Meet hosted at Tiruppur today, FacilitatingMSMEs(FaMeTN;formerly,MSMETradeandInvestmentPromotionBureau)chairedbystate’sMicro, Small and Medium Enterprises (MSME) Secretary MrArun Roy (IAS), signed anmemorandumofunderstanding(MoU)withenvironmentalresearchorganizationWorldResources Institute (WRI) India. WRI India and FaMe TN will work together to support the lowcarbon transition of MSMEs in Coimbatore’s automotive sector and help them adopt ElectricVehicles (EVs), through research, capacity building and skilling. The MoU was signed in thepresenceofTamilNaduChiefMinisterMrM.KStalin,whoalsoinauguratedotherinitiativesforthebenefitof MSMEs.
As India’s automotive sector moves towards EVs, it is likely to create risks and opportunities forthe Internal Combustion Engine Vehicle (ICEV) MSMEs and their workers. However, they needto be prepared with the right knowledge and capacities, to adapt to the transition and tap into newopportunities. Coimbatore being an important ICEV cluster and an emerging EV cluster in thestate, as well as a major employer in the automobile industry, has been selected to become apioneering example of a green automotive cluster where an equitable and just EV transition willbe prioritized. This initiative will support MSMEs through research on risks and mapping thesectoraltransition,buildingcapacitiesondecarbonizingtheiroperations,accessingclimatefinanceandskillingfortheMSMEsandtheir workers for theemerging sector.
AstheEVtransitiongathersfurthermomentum,MSMEsinotherkeyICEVclustersacrossvariousstates,arelikelytofacesimilarimpactsandwouldrequiresuchinterventions.LearningsfromtheCoimbatore cluster would help inform how capacities of the MSMEs can be systematicallymappedandthekindoftechnicalandnetworksupportrequiredbythemtoundergothenecessaryshifts smoothly and inan equitablemanner.
Ms.UlkaKelkar,Director,ClimateProgram,WRIIndia,said,“Thelowcarbontransitioncancreate challenges but also opportunities for the automotive and textile sector MSMEs. It isimportant understand what this transition would mean for profitability of small businesses andjobs for workers and ensure MSMEs have a robust ecosystem, and have access to technology,finance,skillingand policy support.”
WRIIndiawillengagewithFaMeTNandotherkeystakeholders,suchas MSMEassociations,manufacturers, large businesses and academic institutions, to undertake transition and riskmapping, skill gap assessment, and support the development of skilling modules, to ensure asmoothand justtransitionfortheMSMEsinTamilNadu.”
Ms. Sigy Thomas, Managing Director, FaMe TN stated that FaMe TN is being launched with afocus on specific pillars to support MSMEs. “One of these pillars is to support MSMEs realignwith changing market needs and adopt new technologies. This program with WRI will help ourMSMEs in the automobile and textiles sectors be prepared to face challenges that are likely tocome their way with a transition to EVs and the move to more climate-friendly supply chains inthetextilesector,”shesaid.
Dr.OPAgarwal,CEO,WRIIndiaadded,“Coimbatore’sautomotiveindustryisamajorbusinesshubandanemploymentgeneratornotjustinTamilNadubutinIndiaaswell.Systematictraining,skillingandcapacitybuildingwillmakethesector’slow-carbontransitionefficientandeconomically beneficial for the people. By doing so, Tamil Nadu can support India achieve itsclimategoalsand setan examplefor otherstatesto follow.”