While the manufacturing units in Coimbatore have welcomed higher allocation for the industries in the State budget on Friday, the micro industries have expressed disappointment over lack of announcements on industrial estates for the sector.
C. Sivakumar, president of Coimbatore Tirupur District Micro and Cottage Entrepreneurs Association, said in a release that higher allocation for MSMEs, increase in investment limit for subsidy and allocations to encourage entrepreneurship and skill development were also welcome measures. However, most of the micro units worked in residential areas and faced several challenges. Their long-pending demand was a separate industrial estate.
According to J. James, president of Tamil Nadu Association of Cottage and Tiny Enterprises, new entrepreneurs, who invest upto ₹50 lakh, will get subsidy. The earlier limit was ₹30 lakh. There is higher allocation for MSMEs. Now, the industry is facing crisis and this allocation will not be adequate. There is no announcement for micro units that are facing several challenges and this budget also does not address the need for a separate industrial estate for micro units here.
Kovai Power Driven Pumps and Spares Manufacturers Association president K. Maniraj said the association welcomed the announcements in the State budget to increase the interest subsidy given to MSMEs for capital investment to 5 % from 3 % , to esablish more industrial parks, higher subsidy for solar pumpsets, and ₹607 crore allocation for MSMEs.
However, there was no special announcement for the industrial district of Coimbatore.
The Association had been asking for the last 10 years that the government should give priority to micro and small-scale units for purchase of pumpsets by its departments. There was no announcement in this regard.
President of Coimbatore District Small Industries Association R. Ramamoorthy said the budget announcements would revive industries in the State. There was higher allocation for various segments in the manufacturing sector. The MSMEs were spread across the State and these units would benefit from the steps taken by the State Government in the recent days.
V. Lakshminarayanasamy, president of Indian Chamber of Commerce and Industry, Coimbatore, hailed the allocation of ₹ 500 crore for Athikadavu-Avinashi irrigation scheme for which Environmental Clearance had been obtained. Allocation of ₹ 11,894.48 crore for Agriculture Department would boost the agricultural activities and support the farmers. Proposal for establishment of Agro Processing Clusters in eight districts under Prime Minister Kisan Programme during 2020-21 was also a welcome move.
The long-felt need of Coimbatore was the implementation of Metro Rail Project for which no funds had been allotted. “We also expect allocation of funds for acquiring lands for Coimbatore Airport expansion projects which is long pending and very essential for the development of Coimbatore. We reiterate our plea for speedy completion of Coimbatore Airport Expansion Projects.”
Tiruppur Exporters’ Association president Raja M. Shanmugham said several announcements in the budget would encourage entrepreneurs.
Published On : 15-02-2020
Source : The Hindu
