Some of the micro units in Coimbatore have come together to set up an industrial estate here for their use. The units will submit individual proposals to the District Industries’ Centre to sign an agreement at the Global Investors Meet for the project.
J. James, president of Tamil Nadu Association for Cottage and Tiny Enterprises, told The Hindu that about 500 micro industries are expected to be part of the project. “We expect the total investment to be ₹250 crore. This includes purchase of land, construction of building, and installation of machinery,” he said. And the plan is to complete the project in less than two years.
As the city develops and projects come up to make it a smart city, there would be increasing pressure on industries to move out. Several industries already faced pollution complaints from local residents. Hence, the micro units wanted to relocate to an industrial estate, he said.
Each unit has asked for 5.5 cents to 25 cents. Nearly 350 units are ready to invest too in the common project.
The Association is looking for about 50 acres outside the city. “Cost of land is a big challenge. But, we are trying to identify the required area,” he said.
The units are from different sectors - pumps, textiles, compressors, spares, and automobile. The Government is expected to give₹15 crore as subsidy for development of common infrastructure. “We are demanding 25 % subsidy for land, building, and machinery since this is an initiative by micro units that have an annual turnover of ₹ 20 lakh to ₹ 1 crore,” Mr. James added. The estate will be for new ventures and shifting of existing units.
According to R. Kannan, General Manager of the District Industries’ Centre, Coimbatore, 350 units have given consent so far for the project. They would also give proposals to sign MoU at the Global Investors’ Meet. When the Association identifies land, it would give a project proposal to the Government to get the subsidy. “They might take up the project as a co-operative society. They will get government support to develop the common infrastructure and clearances through single window system.”
So far, 1,000 to 1,5000 micro, small, and medium-scale enterprises (MSMEs) in Coimbatore district have come forward to sign MoU at the GIM and invest about ₹ 1,000 crore in the district, he added.