Coimbatore: Entrepreneurs in Coimbatore, the industrial city known as Manchester of South India, have been requesting for provide immediate relief in the wake of the Coronavirus lockdown that was implemented.
Coimbatore: Entrepreneurs in Coimbatore, the industrial city known as Manchester of South India, have been requesting for provide immediate relief in the wake of the Coronavirus lockdown that was implemented.
There are over 1 lakh 50,000 MSMEs in Coimbatore district. About 60 percent of the factories, such as foundries, textiles, powerlooms, and wet grinder, pump and plastic units are located in rural areas and 40 percent in urban areas.
Coimbatore has about 325 large units in the rural area and about 100 in the corporation limits. The largest number of wet grinder factories in the world is located in Coimbatore district. The pump manufacturing industry here plays a vital role in agriculture. The industries here employ about 5 lakh workers. On top of this, there are between 15,000 and 20,000 small entrepreneurs in Coimbatore alone who employ more than 1 lakh workers. Small businesses rely mainly on sub orders which include manufacture of parts for the automobile industry, pumpset components, and textile industry.
Various problems including a decrease in sub orders, shortage of labour, lack of funds, lack of sales in outlets since the lockdown has been implemented have made the companies struggle.
According to Mathivanan, Vice President, Coimbatore SIDCO Industrial Manufacturing Welfare Association (COSIEMA), there are more than 350 companies operating in Coimbatore SIDCO. It employs thousands of workers. He said businesses can only recover if banks cooperate. He urged that a loan of Rs. 1 lakh should be provided unconditionally for immediate relief. Only 30 to 40 percent of sub orders are currently available even for which labour power is short.
According to Sivakumar, President, Coimbatore, Tirupur District Rural Entrepreneurs Association (COTMA), there are more than 4,500 MSMEs which are part of COTMA alone that rely on sub orders. He welcomed the 6-month moratorium to repay the loans purchased from the banks. At the same time, banks now offer a 6-month loan but take it back in one installment. He therefore requested small businesses be provided relief under the Mudra loan scheme. He pointed out that surviving in the business after COVID-9 is like rebirth.
The Tamil Nadu Industrial and Micro Entrepreneurs Association Coimbatore District (TACT) President James said that in order to protect businesses in crisis, the government should provide immediate and unconditional loans in the interest of small entrepreneurs. He also requested for a one-year grace period for repayment. He said the Central and State Governments should immediately provide Rs. 1 lakh relief to all MSME entrepreneurs as they play a major role in providing employment.
According to Maniraj, president of the Coimbatore District Pumpset and Parts Manufacturers Association, industries have lost revenues and livelihoods since the lockdown. He said that businesses have just begun operating again and requested the banks to provide unconditional loans.
There are over 1 lakh 50,000 MSMEs in Coimbatore district. About 60 percent of the factories, such as foundries, textiles, powerlooms, and wet grinder, pump and plastic units are located in rural areas and 40 percent in urban areas.
Coimbatore has about 325 large units in the rural area and about 100 in the corporation limits. The largest number of wet grinder factories in the world is located in Coimbatore district. The pump manufacturing industry here plays a vital role in agriculture. The industries here employ about 5 lakh workers. On top of this, there are between 15,000 and 20,000 small entrepreneurs in Coimbatore alone who employ more than 1 lakh workers. Small businesses rely mainly on sub orders which include manufacture of parts for the automobile industry, pumpset components, and textile industry.
Various problems including a decrease in sub orders, shortage of labour, lack of funds, lack of sales in outlets since the lockdown has been implemented have made the companies struggle.
According to Mathivanan, Vice President, Coimbatore SIDCO Industrial Manufacturing Welfare Association (COSIEMA), there are more than 350 companies operating in Coimbatore SIDCO. It employs thousands of workers. He said businesses can only recover if banks cooperate. He urged that a loan of Rs. 1 lakh should be provided unconditionally for immediate relief. Only 30 to 40 percent of sub orders are currently available even for which labour power is short.
According to Sivakumar, President, Coimbatore, Tirupur District Rural Entrepreneurs Association (COTMA), there are more than 4,500 MSMEs which are part of COTMA alone that rely on sub orders. He welcomed the 6-month moratorium to repay the loans purchased from the banks. At the same time, banks now offer a 6-month loan but take it back in one installment. He therefore requested small businesses be provided relief under the Mudra loan scheme. He pointed out that surviving in the business after COVID-9 is like rebirth.
The Tamil Nadu Industrial and Micro Entrepreneurs Association Coimbatore District (TACT) President James said that in order to protect businesses in crisis, the government should provide immediate and unconditional loans in the interest of small entrepreneurs. He also requested for a one-year grace period for repayment. He said the Central and State Governments should immediately provide Rs. 1 lakh relief to all MSME entrepreneurs as they play a major role in providing employment.
According to Maniraj, president of the Coimbatore District Pumpset and Parts Manufacturers Association, industries have lost revenues and livelihoods since the lockdown. He said that businesses have just begun operating again and requested the banks to provide unconditional loans.