Coimbatore MSMEs demand ease in regulations for business growth
The small industries of Coimbatore have demanded a single window clearance for all approvals for MSMEs.
The demands were made during the Annual General of industry body Coimbatore District Small Industries Association (CODISSIA) held in Coimbatore recently, media reports stated.
According to the trade body, the state and central governments should provide subsidies to MSMEs for expansion and modernisation along with marketing assistance to take part in the national and international trade fairs, both, as participants and visitors.
Business owners highlighted that the prices of raw materials for MSMEs have escalated 35% after implementation of GST. The government should intervene and stabilise the raw material prices at pre-GST levels, they demanded.
The other demands included,
- The National Small Industries Corporation should buy raw materials in bulk and distribute to MSMEs at competitive prices. The corporation is already a raw material supplier. It can enter into a tripartite agreement with MSMEs and banks to supply raw materials with bank loan under the credit guarantee fund scheme, the association suggested.
- On the defence procurement policy, the association said a new consortium or Special Purpose Vehicle (SPV) floated by a group of existing MSMEs should be recognised as an Indian Offset Partner.
- A corpus should be created for MSME-IOPs and lending to these units should be on a par with priority sector.
- The SPV should be considered eligible for offset benefits that individual MSMEs enjoy.
Coimbatore is one of the fastest growing tier-II cities in India and a major industrial hub in South India. It is also referred as the ‘Manchester of South India’ because of its textile industries. The city is also called the ‘Pump City’ as it supplies nearly half of India's requirements of motors and pumps. Coimbatore is one of the largest exporters of jewellery, wet grinders, poultry and auto components.