Federation Of Coimbatore Industrial Association (FOCIA) represents 19 Industrial Associations whose members belong to the micro industries sector.
Coimbatore: Federation Of Coimbatore Industrial Association (FOCIA) represents 19 Industrial Associations whose members belong to the micro industries sector.
Members of FOCIA issued a press release explaining their various needs since all the political parties are now vying to capture the attention of MSMEs and willing to encompass various demands of this struggling sector.
In the press release it is said that "Micro and small industries are very much affected by the volatile raw material price. They stand to lose even the little margin. A request to the government to regulate the prices, fix maximum allowed price (MAP) and impose “one year one price” policy for main raw materials consumed by the industries. The Government should form a price monitoring committee with representatives from MSME to continuously monitor the price of raw materials."
FOCIA then requested the government to safeguard MSMEs by ensuring timely payments. The corporate and large companies, including government organisations conveniently default and exhibit scant respect to the provisions of MSMED Act 2006 on delayed payments. FOCIA now has urged the government to enact a law, as in Germany and Taiwan which blacklists the companies, or government enterprises on failing to clear their payments to micro and small industries within a period of one month.
FOCIA then requested for an Emergency Credit Line Guarantee Scheme ( ECGLS) under Atma Nirbhar Bharat Scheme which previously covered only the MSMEs who already had loan facilities. Members from FOCIA said that there are over thousands of micro units who have never received any financial support from the banks.
The members from FOCIA also requested the government to introduce a separate scheme to fund the struggling micro sector units with the lowest interest rates.
They also requested the bank to cap the interest of bank loans at 5% for the next one decade. FOCIA members then requested the government to extend 2% interest subvention for the micro and small industries who are promptly paying GST regularly. They further requested the government to extend the repayment tenure upto 15 years for any term loan availed by MSMEs.
In their press release FOCIA members said that the GST method never enhanced business for MSMEs and that it only emphasized easy collection of revenue. Members then said that over thousands of notifications and amendments have been made to the GST act within a span of just 3 years and said that it's high time for the government to form a GST rectification and reforms committee with members from the micro and small industries. FOCIA members also said that a GST of 5% should be fixed for all the services, products and purchases of micro sector units which are registered in the UDYAM portal.
Further in the press release issued by FOCIA it is said that every micro entrepreneur dreams to open an industrial shed for developing to the next level. FOCIA members requested the government to grant for the purchase of industrial plots and other amenities under PMAY scheme.
The press release also requested the government to enact an ordinance in the name of “Industrial Estates Rapid Development Act” to remove all the hurdles in developing industrial estates which will support the formation of at least 10000 industrial estates with a minimum 100 plots over the next 5 years.
FOCIA members further requested the government to establish at least 100 marketing centres for industrial products in all major cities. They also requested for 500 units of free electricity to Grill manufacturing units and a waiver of at least 20 % to the electricity tariff for welding works companies. The members also requested the government to form a welfare board to nourish and foster all the unorganized workers employed by micro and small units.
The press release also urged the government to construct workers hostels for the benefits of migrant workers in all industrial clusters. They also requested the government to form a separate ministry for Nano or Cottage enterprises for companies and units which have an investment of Rs. 25 lakhs and a turnover of rupees 1 crore. They also requested the state government to initiate a separate ministry for micro and nano units.