CM lends an ear to industry representatives’ concerns

Coimbatore: Representatives of industrial associations in the district on Thursday submitted a representation to chief minister Edappadi K Palaniswami at the collectorate.
Fifteen representatives of industry associations spanning engineering units, pump industries and railway suppliers requested the CM to set up an industrial corridor in the region.
R Ramamurthy, president of the Coimbatore District Small Scale Industries Association (Codissia), said Coimbatore needs to be developed as an industrial corridor, as the city and the regions within a 100km radius, are a hub of MSMEs. “If Coimbatore is developed as an industrial corridor, Tamil Nadu’s GDP can be doubled in three years,” he said.
A demand put forth by all associations was regarding power tariff. Industrial units are either in a state of complete lockdown or worked in reduced capacity, they said and sought concessions.
Representatives of the Joint Council of MSME Associations in Coimbatore, said that the maximum demand (MD) charges and fixed charges for power connections should be removed. This, they said, can be adjusted against the security deposit with the EB.
Representatives of South India Spinners Association (SISPA) said micro, small, and medium spinning mills were not able to function in full capacity due to the crisis. For one year, the minimum charges for maximum demand should be collected only for the actual recorded demand for high-tension power consumers, they said. Also, the fixed charged for low-tension consumers should be waived off for a year.
Representatives of the Federation of Coimbatore Industrial Associations (Focia) said power tariff for the lockdown period or the months when the units were running in reduced capacity, be collected in instalments. “The memorandum of deposit (MOD) registration charges for registering new loan creations in banks should be cancelled. 12% interest is being charged on loans given through the Tamil Nadu Industrial Investment Corporation Limited (TIIC). 6% of this is paid back as interest subvention. The interest should be 6% directly. Micro and small units that have no existing loan transactions with banks, such as term loans, or cash credit loans, should be given loans considering the crisis.”
The government should take steps to bring back the guest workers who are willing to return to Coimbatore, they added.
Speaking at the meeting, the CM said that if the defence corridor project announced by former defence minister Nirmala Sitharaman is implemented, industries in Coimbatore will prosper. “Jobs will be created and the economy will get a boost. The state government will offer its support to the project,” he said.