The micro units here have welcomed the MSME policy announced by the State government on Tuesday as it has increased the capital subsidy ceiling.
“This is a welcome move that will help micro units expand,” said J. James, president of Tamil Nadu Association of Cottage and Tiny Enterprises.
The plan of the government to infuse funds into Tamil Nadu Industrial Investment Corporation (TIIC) is another announcement that will benefit the MSMEs, said C. Sivakumar, president of Coimbatore and Tiruppur Districts Micro and Cottage Entrepreneurs Association.
Raja M.Shanmugham, president of Tiruppur Exporters’ Association, said the Industrial and MSME policies will pave way for the growth of industries in the State. The MSME policy focuses on textiles too. The support to industrial housing project will benefit clusters such as Tiruppur.
The incentives provided to MSMEs, such as equity participation through a designated Fund Management Company (FMC) and 20% of the total expenditure incurred on SME IPO, will help growth of Tirupur knitwear sector, he said.
K.V. Karthik, president of Southern India Engineering Manufacturers’ Association, said the focus on quality improvement is a step in the right direction. The government has come out with several incentives to support industrial associations in development activities.
Both the policies encourage investments in the State, especially in the MSME sector, said Ramesh Babu, president of Coimbatore District Small Industries Association.
The announcements in the policy aim at attracting investments. However, the micro units had submitted a memorandum to the government on their demands. Those were not addressed, said Mr. James.
When the Central or State governments announce an industrial policy, there is no focus or priority for micro units.
For instance, the micro units do not get orders from public sector undertakings or government departments, he said.
Published - February 16, 2021 11:52 pm IST
