Industries in Coimbatore and Tiruppur districts have welcomed the revised definition for Micro, Small and Medium Enterprises (MSME) classification.
According to Cotton Textiles Export Promotion Council chairman KV Srinivasan, the enhancement in turnover and investment limits for medium enterprises is a positive step. The cabinet has decided to exclude export turnover from the turnover limits for MSMEs. This is a welcome decision for textile exporters as many of them will be eligible for 5 % interest equalisation scheme benefits.
Apparel Export Promotion Council chairman A. Sakthivel said the turnover of exporting units depended on foreign exchange rates. Rupee value has weakened continuously for the last 10 years. The decision to exclude export turnover will strengthen the MSME sector and propel exports.
T. Rajkumar, chairman of Confederation of Indian Textile Industry, said that with the revised definition, even small weaving mills will be classified as MSMEs. This will benefit the garment manufacturers too. Decision to create ₹4000 crore Distressed Asset Fund will help the weaker MSMEs that are struggling due to NPA norms.
According to Southern India Mills’ Association chairman Ashwin Chandran, several segments of the textile value chain - power looms, handlooms, knitting, processing, embroidery, garment, etc - that do job works will be encouraged to consolidate and modernise their facilities. He urged the government to further consider modifying the definition to investment or turnover from the existing investment and turnover limits specified.
Tiruppur Exporters’ Association president Raja M. Shanmugham said the upward revision of investment and turnover limits for medium scale units will benefit the garment exporting units in Tiruppur and attract investments.
The Railways Suppliers’ Association in Coimbatore opposed the change in definition saying micro and small-scale units will stand to lose, especially in getting orders from public sector undertakings.