Coimbatore is the second largest industrial city in the state of Tamil Nadu and the city is known for its enterprising skills of the industrialists here. The city normally seen as the hub of western Tamil Nadu has an array of industries comprising from large scale industries to micro ones.
Coimbatore is the second largest industrial city in the state of Tamil Nadu and the city is known for its enterprising skills of the industrialists here. The city normally seen as the hub of western Tamil Nadu has an array of industries comprising from large scale industries to micro ones.
About 30,000 micro and small industrial units are functioning in and around the district. The industrial growth in this region not only contributes to the development of the Kongu belt but to the entire state according to experts.
The industrial associations in the region have a few demands for our potential MP candidates which they believe will aid the growth of this industrial belt.
J. James, the President of TACT ( Tamil Nadu Association of Micro and Cottage Enterprises) says, "There are about 30,000 small and micro units in the district . Our long outstanding demand is a separate industrial estate for our member industries which will help us in representing our demands as a cluster.
The other important demand is bringing down GST for job orders from 18 percent to 5 percent. If possible, remove it from the GST. Till date, job orders did not come under tax payments at all. Job orders are done by small and micro industries, and paying 18 percent GST is a huge burden for them."
Surulivel, President, COSIEMA (Coimbatore Sidco Industrial Estate Manufacturers Welfare Association) says, "First and foremost, we need a simplification in the process of filing GST. It is too complicated for industries like ours. Then reduction in GST rates for job orders from 18 to 5 percent will be good.
The defence corridor is fine. We have the Defence Innovation Centre coming up at Coimbatore. This will not translate to jobs. We are already manufacturing accessories for defence equipment from Coimbatore. If there is a large scale industry manufacturing defence equipment in Coimbatore, it will bring in more jobs which will improve employment and help in the development of the district,” added the COSIEMA President.
"The other major demands include a separate ministry for MSMEs and a separate budget for the sector. banking rates are another area of concern. The ease of business has still not been good enough for small and micro industries. The interest rates for bank loans are between 9 to 12 percent which is huge for us.
There are countries which offer bank loans at 1 or 2 percent for small industries. If the interest rates are brought down below 5 percent, it will help the small and micro industries to sustain and grow,” stated the representatives of Industrial Associations.
The issues facing medium and large industries are almost the same with just a few additions. Ramamoorthy, President, CODISSIA (Coimbatore District Small Industries Association) opines, "True, the Government has done a lot for the development of industries in this region.
The CODISSIA industrial park which will come up at Mopperipalayam is an example of that. We will be able to do better if our representatives offer to handhold us for further development. They should represent our issues to the concerned ministry, and if required in the Parliament too. Airport expansion is the other major issue that we would want our MPs to represent and get things done from the Government side. While the manufacturing sector has more or less the same set of demands, be it tiny or medium, the textile industry has a different set of demands."
K Selvaraju, the Secretary General, SIMA (The Southern India Mills Association) feels, "The textile industry has got many benefits even in GST but if there is additional support, the largest industry which is on par with agriculture in generating employment can fare even better.
The Coimbatore region alone has 7.5 million spindles higher than Gujarat and Maharashtra put together. We have around 2 lakh powerloom units, more than 50,000 handloom units in Coimbatore and Tiruppur put together.
In the spinning machinery manufacturing sector, LMW manufactures 80 percent of the country's needs. Coimbatore is one of the three major textile manufacturing hubs. Alongside Tiruppur, everything from fibre to fashion is manufactured here. If the Government is able to support us more, there will be 3x development by 2025."
Demands put forth by the SIMA Secretary General include: A total of 17,822 crores is available under the technology upgradation fund scheme and the amended technology upgradation scheme, of which only a portion of the fund has been distributed. Steps should be taken for consistent and speedy disposal of the funds.
Secondly, under the MSME Development (Amendment) Bill, 2018, introduced by the MSME Minister Giriraj Singh, any business with a turnover of up to 5 crores will be considered a ‘micro enterprise.’ The other slabs are 5-75 crores for ‘small enterprise’ and 75-250 crores for ‘medium enterprise.'
This is yet to be implemented which needs immediate attention. Thirdly, the Input tax credit for capital goods under GST should be refunded immediately without delay. Fourth, like MSP in agriculture, cotton prices should also be brought under the Price Stabilisation Fund scheme which will help the industry in the long run because unstable yarn and cotton prices affect the small and medium enterprises to a great extent.
K Maniraj, President of KOPMA (Kovai pump sets and spares Manufacturers Association) is highly critical of GST. “GST has the unique distinction of transforming owners into labourers. Nearly 30 percent of small and micro industries have closed down because of GST.
Levying 18 percent tax for job works has never happened till now, not even the British did it. This Government in the name of tax revamping has destroyed thousands of micro and small industries. We want GST to be completely abolished but since it is not possible, we want our future MPs to at least bring down the GST for job orders from 18 percent to 5 percent. Moreover, we have differential GST rates in the supply chain.
This should be changed. Water is a basic necessity and pumpsets are a must in every walk of life, be it for drinking water or agriculture. So the Government should consider the small and micro industries who have just one or two employees. There are ladies working in motor winding.
This industry has given employment for lakhs of people. GST has become a capital investment every month which is a huge burden for such industries. The Government and our representatives should consider lowering GST rates and help the industry," he reiterated.
Saastha M Raaja, the President of COWMA (Coimbatore Wet grinders and Accesories Manufacturers Association) says, "Coimbatore has numerous manufacturing industries, be it engineering or other sectors. If the Government can construct a market complex like TEXPROCIL in Erode, it will eliminate the middle men completely.
Buyers from other parts of the country or abroad can come straight to the market and purchase it from the manufacturer directly. Secondly, GST for wet grinders though reduced from 28 percent to 12 percent is still high for small units. This should be brought down to 5 percent to help the industry grow.”
With the industry stalwarts in the district expecting the elected representative to address the above said issues, it is expected that the natural outcome would undoubtedly be the industrial development of the district.