CODISSIA submits requests to Minister of Industries Thangam Thennarasu for benefit of MSMES

CODISSIA submits a slew of recommendations including the revision of the Master Plan of Coimbatore which is pending since 1994. The release of Revised Master Plan needs to be speeded up considering the present and future needs.

Coimbatore: CODISSIA represented the below points for your kind consideration, which are mandatory for the

development of MSME Industries and also for their smooth operations. 

They said, the Master Plan of Coimbatore needs to be revised which is pending since 1994. The release of Revised Master Plan to be speeded up considering the present and future needs.

- Earmarking of unused lands, bare lands and Dry lands as vacant Industrial lands for priority sector projects in the City.

- Focus on land siting criteria to identify industrial lands located more than 500 meters away from National Highways.

Single Window Clearance

- Single window clearance to be introduced by a suitable software system for sanctioning of building approvals duly adopted by the Director of Town and Country Planning, Local Planning Authority and Housing Department. This will facilitate Industrial Land Classification applications/ Licences/Approvals without any delay for supporting construction industries.

Financial Support for MSMEs

- Outstanding payment from PSUs and other Government Sector to be released immediately to MSMEs through TReDS.

- 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.

- 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.

- Loans like Credit Linked Capital Subsidy Scheme to be implemented through Tamil Nadu Industrial Investment Corporation Limited, without any collateral security.

Skill Development Centres

- To set up Skill Development Centres to help MSMEs to absorb sufficient manpower with required skills.

- 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.

- 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.

- Candidates registered in District Employment Centre should be channelized to Industries for skill training and after the training, Certificates may be issued to them jointly by the concerned industry and the Government.

- Hands on learning and training techniques to be incorporated as an integral part of our teaching strategy in our academic programs during under graduation, which should be a functional part of every lesson plan, to familiarize students with the models and materials they will use later in either professional, post-graduate employment or research positions. Industry exposure for students from their first year of under graduation will motivate and encourage them to become an entrepreneur in future.

Strengthening the Labour Workforce in Tamil Nadu

- 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.

Special Economic Zone required for electronic manufacturing:

- Computers and its peripheral equipment such as desktops, servers and printers, electronic appliances manufacturing should be encouraged for which a Special Economic Zone (SEZ) is required in Coimbatore. Tamil Nadu being the one of the major electronics exporting states in the country to the tune about US$ 1.27 billion, a Special Economic Zone (SEZ) is required for electronic manufacturing, which will further earn foreign exchange apart from generating more and more direct and indirect employment opportunities.

Defence

- About 400 acres of land has been identified by SIPCOT in Sulur, Coimbatore for development of defence industrial park. This needs to be speeded up.

- In order to kick start the activities of the Southern Defence Corridor in an effort towards Atma Nirbhar Bharat, Tamil Nadu Government should support the MSMEs by getting orders from Public Sector Undertakings.

- State Government must support MSMEs / Start-ups with 100% subsidiary for defence and aerospace products testing certifications (NABL, CEMILAC, DGQA, DGAQA Etc) and boost Tamil Nadu defence corridor Initiatives.

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 crores 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.

- Tamil Nadu being declared as one of the defence industrial corridors in India, we suggest that large industries be considered for setting up their manufacturing units in Coimbatore for defence supplies.

TANGEDCO

- It is a major relief to many small and medium scale industries that the Tamil Nadu Electricity Regulatory Commissioner (TNERC) has notified the amendment to the electricity supply code which allows consumers to have an option to avail up to 150 KW under the LT category, compared to an earlier limit of 112 KW.

- We welcome the above move from TNERC, but without the applicable charges being maintained at the same tariff for 112 KW, this will be a heavy expenditure to the industries and will be of no use.

- For HT Industries, in recent months, the entire cost of installation of Distribution Transformer with associated equipment/accessories viz. AB Switch, HG Fuse, DT Structure, Pole are at the cost of the Licensee at the Licensee’s cost. Any Gazette notification is binding to all the concerned. The licensee deliberately does not communicate the amendments made to DC thereby the consumers are affected. Whenever the tariff is approved by TNERC, the Licensee is able to implement and communicate it to its officials immediately.

- 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

- To ensure availability of 24x7 Power for Industries.

- CODISSIA requests the Government to enhance the capacity of Southern Grid on a war footing basis. Quality Power – One Nation, One Tariff.

Airport Expansion

- Speed up the land acquisition of about 678 acres required for Coimbatore International Airport expansion, which is pending for the past 20 years.

- Coimbatore is ranked 2nd biggest airport in Tamil Nadu and 20th biggest in the country. It is the 13th biggest cargo in our country and it has the potential to grow if the infrastructure could be created. 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.

- 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.

Bilateral Air Service Agreement (BASA)

- We request the Centre to add Coimbatore City in the BASA to enable easy access to foreign airlines to start their flights to other countries.

Blue Collar Townships

- Being an industry city, people from various southern districts of the state as well as from North Indian states are provided with employment in and around Coimbatore. Providing sufficient accommodation to the entire workforce within the city is becoming a difficult task. To meet the growing housing demand of this migrant workforce, it is suggested to create Blue Collar Townships (employee townships) under PPP mode as a satellite city, catering to their basic amenities as well as improving their standard of living.

- State and Central Government to advise the migrant workers not to move from the workplace, to arrest the spread of COVID-19 Creation of a Coimbatore Development Authority

- We request formation of a body in Coimbatore, similar to Chennai Metropolitan Development Authority for the development of the city so that growth is made much faster for overall development.

Foundry Industry

- Since the foundry sand is non-hazardous and required tests and trials were conducted successfully for recycling the same for road construction and making of solid block and pavers, we request the support of Tamil Nadu Government to promote the same.

- Until such time the foundry sand reuse initiative unfolds to desirable levels, it is required to find ways and means to dispose of them. Given the non-hazardous nature of the sand, the best way is to use it for refilling abandoned wells and quarries. This has been the age-old practice and it is proven that it does not result in any harm to ecology and surroundings. Request suitable instructions to the concerned department for necessary action.

- One of the long pending requests of Industrialists, especially people in core sectors like Foundries and Engineering Manufacturing, it is required to create buffer zones around industries already accorded permission for conduct of business based on their respective classifications - like Red Followed by Orange, followed by white and then Green. This will help to avoid unnecessary and unwanted administrative hardships.

- Foundry being a Core Sector Industry mostly comprising MSMEs in the State, is essentially dependent on Human Resources and Technology Modernization. Give the size and structure of Foundries in Coimbatore, a common Foundry Excellence Centre Human Resources Training and Technology Development will help in job creations for Youth from across the social spectrum, apart from aiding industrial growth as there is no manufacturing without Foundries.

Infrastructure:

-Focused Infrastructure upgradation in tier II and tier III cities will attract large industries and medium scale industries, lead to balanced -Economy and industrial growth in the city. These Large industries can be complimented with existing MSME supply chain and workforce available.

- 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 and Coimbatore-Hosur Industrial Corridors to be developed which will make Tamil Nadu to gain GDP double in three years.

- To promote vertical/multi-storied Industrial Estates in Tamil Nadu for the benefit of Micro Industries.

- 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) - An elevated road from Ganapathy (Textool) to Saravanampatti is very much essential. There is a proposal for new alignment of a single road from Saravanampatti to Bannari, which should be a 4 lane road up to Bannari which will be much useful for easy movement of vehicles going into Karnataka State.

- Bus port project to be developed on priority basis to reduce the road traffic inside the city limits.

- L&T Bypass road from Nilambur to Madukkarai (NH 544) six lane work to be initiated immediately.

State policies on futuristic Technologies

- State policies to be framed for promoting innovative product developments and manufacturing in the field of AI (Artificial Intelligence) & ML (Machine learnings), ESDM (Embedded System Design and Manufacturing), E-Vehicle Manufacturing, Green Energy technologies, Space startup missions. These policies will help us to attract world class technology-based industries and startups to tire II and III cities and help employment generation.

EDII-TN and Startup-TN centers at Tire II / III Cities

- Entrepreneurship Development and Innovation Institute – TN and Startup -TN centre supports need to be extended to tire II / III cities. New employment generation and technology based early startups has to be supported and this facilitations are being done through EDII-TN and Startup-TN initiatives. If these centers can extend their operations to Tire II/III cities, it will empower the budding entrepreneurs.

Other suggestions:

- Inspector Raj in MSEs to be eliminated and self-declarations by individual MSE units should be honoured and accepted. CODISSIA requests the Implementation of Small Factories Act at the earliest. Industries having below 50 employees should not be under the purview of inspection by officials and those industries should not be bound under any other conditions.

- Extension of Subsidies for National and Quality Certifications. The limit should be extended up to Rs.50 lakhs for international certification.

- Larger industry investment should happen in Tier II cities viz. Coimbatore, Salem, Trichy to be encouraged, which will improve the supply chain and also pave the way for balanced industrial growth and economy.

- Online marketing portal to be developed by Tamil Nadu Government.

- To drop the proposal to bring the offence of bill trading within the purview of the Goondas Act,1982.

- To allow safety matches manufacturing industries to import the Poplar Logs from Netherland, France, Denmark and other European Countries and to continue the Relaxation Procedure permanently with “Single Time Fee” for import of Poplar Logs. 

Further, by reducing the basic duty structure for the raw materials imported and also by increasing the export incentive to 10% to this sector, will increase the export quantity in double and can compete with the world market.

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