CODISSIA President MV Ramesh presents suggestions for growth of MSMEs to FInance Minister
Coimbatore: M.V. Ramesh Babu, President, CODISSIA attended the consultation meeting in connection with the Revised Budget Estimate 2021-2022 held at Chennai today.
Dr. Palanivel Thiaga Rajan,Minister for Finance and Human Resources Management, T.M. Anbarasan, Minister for Rural Industries including Cottage Industries, Small Industries, Slum Clearance Board, V. Arun Roy, IAS, Secretary to Government, MSME Department, S. Krishnan, IAS, Additional Chief Secretary to Government, Finance Department, Sigy Thomas Vaidhyan, IAS, Industries Commissioner and Director of Industries and Commerce, R. Gajalakshmi, IAS, Managing Director, TANSIDCO, Government of Tamil Nadu were present during the meeting.
President in his speech, thanked the Hon’ble Chief Minister, Hon’ble Ministers, IAS Officers and Officials from the Government of Tamil Nadu for being proactive and conducting series of meetings for the benefit of MSME industries and submitted the below Representation.
COVID vaccinations to be arranged immediately on priority for all the eligible persons through special campaigns.
Financial Support to MSMEs
- Loans from State Financial Institutions like Tamil Nadu Industrial Investment Corporation Ltd. (TIIC) etc. needs to be rescheduled for six months and the interest rate should be NIL, during the lockdown period. TIIC to provide additional Term Loan up to Rs.3 crores to all MSME industries in Tamil Nadu without second charge as security from MSMEs for a term of three years and to extend moratorium period for 1 year to the existing TIIC customers. The interest rate should be NIL during the lockdown period.
- All concessions/subsidies which are at present being provided to the existing SIPCOT/ SIDCO Industrial Estates should be extended to all the Industrial estates with full infrastructure facilities, for the development of industries.
- Special capital subsidies up to 30% should be provided to all manufacturing industries (new or for expansion) which generate employment opportunities in Coimbatore.
- 25% Capital subsidy for thrust sector as per Tamil Nadu MSME Act to be sanctioned to automobile, Solar panels, Leather industry, Electrical accessories, Manufacturing industry, Pump and Motor manufacturers and Textile machinery parts manufacturing industries. This fund is being utilised in maximum by MSMEs in other Cities than in Coimbatore but a large number of MSME industries are available in Coimbatore only. SIDBI has cleared the loan applications of MSMEs till March 2019 only and since many MSMEs are waiting for the loan to be disbursed, they refuse the subsidy scheme for new term loan seekers.
- Waiver of interest on all loans including cash credit facilities for another one-year period till 31.3.2022.
- To release the outstanding payment from PSUs and other Government Sector immediately to MSMEs
- To extend the grant of Interest Subvention charges to 6% for all MSME units which will encourage manufacturing in order to sustain and increase their productivity.
- MSMEs should be exempted from interest or penal action for any discrepancies.
- Technology Upgradation Fund (TUF) Scheme to be introduced for expansion and modernization of MSEs and Accelerated Depreciation for three years to be extended to all MSEs which go for expansions and modernizations.
- Inspector Raj in MSEs to be eliminated and self-Declarations by individual MSE unit should be honoured and accepted.
Master Plan for Coimbatore
Master plan of Coimbatore needs to be revised which is pending since 1994. The release of a new Master Plan to be speeded up considering the present and future needs.
Single Window Clearance
Introduction of Single Window clearance is essential, by a suitable software system for sanction of building approvals duly adopted by Director of Town and Country Planning, Local Planning Authority and Housing Development.
This will facilitate approval of Industrial Land Classification applications/ Licences/Approvals without any delay for supporting construction industries.
Statutory Payments
Electricity Bills, Property Tax, Professional Tax, Licence Fees, Pollution Control Board Fees and all Statutory payments need to be deferred by another six months till 31.03.2022 without any penalty or interest.
Strengthening the Labour Workforce in Tamil Nadu
The first and second waves of COVID 19 have highlighted that our State is heavily dependent on labour workforce from other states, mainly from North and North East. Industries almost come to a standstill when other state labourers leave for their hometowns.
An appropriate mechanism for skilling the existing potential workforce inside the state has to be urgently identified and implemented in a phased approach for self-reliance.
Accordingly, existing schemes have to be revisited, new schemes have to be planned, and we shall be glad to collaborate and work with the Government in this regard.
Subsidies to be allowed for creating hostel/accommodation facilities for migrant workers in the respective industrial premises.
Skill Development Centres
- To set up Skill Development Centres to help MSMEs to absorb sufficient manpower with required skills.
- To create Memorandum of Understanding between Rural Development, District Industries Centre and the relevant Association for developing Skill Development.
Centre through which rural labour can be trained in the above centre which will pave the way for MSMEs to absorb them.
- To allocate 90% funds for Skill Development by the State Government.
- For training the rural employees, stipend and accommodation to be allotted for the training period.
- Employees working under the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) which guarantees for 100 days of employment in a financial year, to be made available for the labour work in the industries located in cities. The industry looks at manpower flexibility to run the operations.
Retrofitting of Emission Control Devices for DG Sets of capacity 125 KVA and above
- The Government has resolved the earlier power crisis shortage. Tamil Nadu has become a power surplus state with opportunities to export power to other states. The Green Energy generation from our state is abundant with many Wind and Solar Generators.
- Currently, Gensets are needed only for standby purposes such as short duration load shedding since there is adequate supply of power. Due to the high cost of diesel, power generation from Gensets is no longer viable for running industries unless there is an emergency or for a temporary cause.
- TNPCB to stop implementation of memo and further proceedings in this matter urgently as the deadline for compliance is announced as 31st March 2021.
Defence Testing Infrastructure Scheme (DTIS)
- Department of Defence production has requested an Expression of Interest for setting up a Defence testing Center in the Tamil Nadu Defence corridor under the Defence Testing Infrastructure Scheme (DTIS) with an outlay of Rs 400 crore for creating state of the art testing infrastructure for the Defence sector and Coimbatore is an ideal destination to start such testing facility.
- The projects under the Scheme will be provided with up to 75% funding from the Central Government in the form of ‘Grant-in-Aid’. We request the State Government to provide 25% financial assistance for setting up a Defence Testing Centre of total project cost Rs. 400 crores, which will cater for the testing of system and component for the Indian forces - Air Force, Navy and Army.
- Large scale industries, MSMEs and start-ups will utilise this testing facility to validate and get their products certified for the defence supply. The equipment/systems tested will be certified as per appropriate certification agencies like CEMILAC, NABL, DGQA, etc.
ENERGY
TANGEDCO’s Harmonics Petition with 15% penalty clause
- TANGEDCO has filed a petition with Hon’ble TNERC for Harmonics Measurement and a 15% penalty clause. We request TANGEDCO to withdraw their current petition and a fresh petition may please be filed after making a detailed study and based on ground realities, since the penalty clause in the context of revenue, will affect consumers, employees and dependent families.
Withdrawal of appointment of Qualified Coordinating Agency (QCA) for forecasting
- Since the wind/solar generators are already paying several charges such as Open Access, O&M and Transmission Charges to TANGEDCO, it is very difficult to forecast such naturally available energy which is purely based on weather conditions, instructions may please be issued to the concerned authorities to withdraw appointment of QCA and further proceedings in this regard.
Payments to Wind Energy Generators (WEG) / Solar Energy Generators
- To clear all pending payments since April 2018 for the energy purchased since April 2018 by TANGEDCO and ensure clearance of payments without any delay.
TANGEDCO to meet 24x7 power demand at all times.
Infrastructure:
- A Mega Industrial Estate of about 1000-1500 acres in Coimbatore to be promoted by SIDCO.
- Coimbatore needs to be developed as the major Industrial City and large-scale industries have to be brought within the radius of 100 kms. as Coimbatore is a hub of MSMEs.
- Coimbatore-Madurai & Coimbatore - Hosur Industrial Corridors to be announced.
- Request to promote Vertical / Multi storied Industrial Estates in Tamil Nadu for the benefit of Micro Industries.
- To develop the Industrial Corridor from Coimbatore to Hosur will make Tamil Nadu to gain GDP double in three years.
- To develop the Tamil Nadu Defence Corridor which will promote greater sourcing of spares and other services from the TNDIC nodes viz. Chennai, Coimbatore, Salem, Trichy and Hosur.
- Suburban circular train service with Metro trains are the need of the hour for Coimbatore.
- Speeding up of all on-going projects, Flyovers, up gradation of stations, modernizing Goods Terminals and Handling is urgently required.
- Formation of Western Bye-pass Road/Ring Road.
- Cochin Frontier Road - Palladam to Madukkarai Road needs to be widened and formed as a Four-Lane Road.
- Palladam to Chinthamanipudur Road to be widened and formed as a Four Lane Road.
- Sathyamangalam Road (NH 948) to be widened and formed as a Four-Lane Road from Kurumbapalayam for which speedy land acquisition process to be initiated.
- Bus port to be developed on priority to reduce the road traffic inside the city limits.
- Four lane highways from two lane Roads to ease the movement of vehicles:
o Coimbatore to Sathyamangalam, NH 948.
o Coimbatore to Mettupalayam. NH 181.
o Upgradation of L&T Bypass road, Nilambur to Madukkarai. NH 544.
Construction of the flyovers:
o Singanallur - Trichy road, NH 81.
o Sundarapuram - Pollachi road, NH 83.
o Saravanampatti - Sathyamangalam road, NH 948.
o Thudiyalur - Mettupalayam road, NH 181.
by National Highways in the critical junctions inside the city.
City train Coimbatore CTC network around the city must be started with the existing available infrastructure from Irugur, Coimbatore Junction, Podanur and back to Irugur with the MEMU units by the Ministry of Railway which will decongest the roads in Coimbatore.
Suburban train connectivity for 100 kms from Coimbatore connecting Erode, Palani, and Shoranur with MEMU train will be very useful for the people in this region. An institute for research and higher education in science, engineering, design, and management, Indian Institute of Science, IISC, must be established in Coimbatore.
Introduction of Land Grabbing Act
- Introduction of Land Grabbing Act similar to Andhra Pradesh and Gujarat model. The current system is only through Government Order passing. Act in this regard is necessary for the long term interest of the people of Tamil Nadu.
Airport Expansion
- Coimbatore is ranked 22nd busiest Airport in 2019 – 2020 and it is out of the top 20 busiest Airports in India as on March 2020.A good airport infrastructure can be created only with sufficient land availability. Coimbatore requires about 650 acres of land for airport expansion. We request the Government to speed up the acquisition and expansion process at war footing.
- Government to form a Special Purpose Vehicle to plan a state of the art international airport in an area of 4000 acres, which should have facilities to cater to 2 crore passengers, cargo complex, aircraft maintenance hangars, aerospace parks and air defence manufacturing industries that will bring development to the business people in this part of the country as most of the people travel to US and Europe take flight from Cochin only.
- Most of the operators like Indigo, Spice Jet, Singapore Airlines, Air Lank, Air Arabia and Emirates are ready to operate to various International Destinations. Once our Coimbatore Airport runway is expanded, wide bodied international operational aircraft can land and take off. There will be a huge revenue if Coimbatore Airport is getting expanded soon.
Normalisation of CDBR and TANGEDCO Rules
- Several differences in Rules between TANGEDCO and Combined Development Building Rules (CDBR) creates problems in construction and allocation of space for various amenities. These differences are to be normalised for the effective implementation of the Tamil Nadu CDBR Rules.
- Creation of Tamil Nadu Real Estate Regulatory Authority (TN-RERA) in Coimbatore .
- Reduction in Application Fee for Approvals, Infrastructure Fee, Security Deposit and Pollution Control Fees.
- Due to the negative impact of economy for Real Estate in Tamil Nadu, various government fees may please be reduced so that the cost of approval is brought down to reduce the price for the customer.
- Activating the Defence Corridor and Incubation Centers, Agriculture based storages and cold storage can be given preference and priority for quick establishment.
- A Special IAS Officer may please be appointed for following up and to implement the representations given by all Associations.