A request was also made for a year's time to repay loans obtained during the pandemic period.
Coimbatore: Representatives from various industries in Coimbatore met the Tamil Nadu Chief Minister, M K Stalin in Chennai to put forth various demands.
They urged the CM to press the Centre to reduce rising raw material prices and requested establishment of Industrial Estate in Coimbatore for MSMEs.
CODISSIA President Ramesh Babu, SIMA leader Karthik, TACT President James, TANSIA Vice-President Surulivel, CODISSIA former Presidents Sundaram and Ramamurthy, COTMA leader Sivakumar Lagu Udhyog Bharathi, Chairman Sivakumar, IIF President Muthukumar and many others were present at the meeting. The Chief Minister was accompanied by Minister Senthil Balaji, Thennarasu and Damodaran.
Extending overwhelming appreciation of the TN Chief Minister's initiatives and schemes to improve the State, TACT Coimbatore members assured the CM that industries will strive to make Tamil Nadu a leading state in all spheres. They expressed gratitude to the Chief Minister's immediate response to the grievances put forth by the industries to the Committee constituted under Retd.
IAS officer Sundaradevan by the Government for the industries grievance redressal. A report was submitted by the Committee to the Government on the issues heard from the sector.
The industries have now placed a set of demands to be addressed by the Chief Minister, requesting his assistance.
1. Set up industrial estates for entrepreneurs who take up job orders and spare parts within 15 km radius from Coimbatore by possessing private wastelands, and also in Government-owned lands. The lands be divided between 1/2 and 1 ground and buildings be set up at 1000 sq.ft. Make way for the small scale enterprises to get loans that can be paid back as monthly installments and help MSMEs form a cluster of micro enterprises in Coimbatore and get job orders from private and public sector that will help industries in their growth.
A separate loan scheme for entrepreneurs through TAICO Bank and Co-operative Banks was also sought.
2. With lakhs of job order entrepreneurs present in TN, available more than anywhere else in India, the industry was paralysed due to the pandemic in the last two years due to the hike in raw materials price. The Central Government's loan assistance also did not help the sector and thus a request was made to the CM to disburse current capital loan through Co-operative banks up to a minimum of Rs. 2 lakhs, at a minimum interest rate.
Press Union Government to waive off GST penalty interest.
3. The micro and small scale enterprises have faced a crisis manifold after the implementation of GST, as the industries are paying penalty interests for late GST payment from 2017 to August 2021. Now every entrepreneur is being pressured by the authorities to pay thousands of rupees as penal interest for late payment of GST. The companies approaching job orders and manufacturing sector delay billing from 90 days to 180 days for the work done, in turn making the micro and small entrepreneurs delay payment of GST after due date.
The MSMEs pay the penalty in the coming months based on the number of days delayed, and are still pressured by the authorities to pay penalty interest. They requested the Chief Minister to take measures to waive off the penalty interest for late GST payment through the Council and protect the micro, small and medium enterprises.
Seeking concessions in electricity bills.
4. The Micro Enterprises that get job orders and spare parts manufacturing in our State should be provided electricity at a lower rate at the cost of their Government subsidy, which, if there is a concession it will be of great help to the development of micro enterprises and those facing crisis. The MSMEs that use up to 25 HP for manufacturing process should be provided this concession which will help the industry grow.
Fetching job orders and spare parts manufacturing orders from public and private sector.
5. The industries requested the Government to take steps to provide job orders and spare parts manufacturing orders directly up to 25 percent from the public and private sector industries in our State.
Demand for setting up of district-wise committee.
6. Every district in Tamil Nadu is progressing uniquely with the support of the Government and a request was made to set up district-wise committees under the Chairmanship of District Collectors consisting of representatives of major industry organizations and senior officials of the department, for the development of industries and to remove barriers that affect the growth.
To protect micro entrepreneurs from banks and private financial institutions.
7. The raw material price hike has shocked the industries that have been facing a downfall since the pandemic and are unable to pay back the loans obtained from banks and private organizations. A request was made to press the Centre to curb raw material price hike and also get a year's time to repay the loans obtained. In the face of a severe crisis, the Government should be urged to waive off all the penalty and penalty interests for the period from 2020 to 2023.