The micro units here have appealed to the State government to construct industrial estates, exclusively for the micro units, on the main roads in Coimbatore.
This was one of the resolutions passed at the annual meetings of Tamil Nadu Association of Cottage and Tiny Enterprises (TACT) and Coimbatore and Tirupur Districts Micro and Cottage Entrepreneurs Association (COTMA) held here on Wednesday.
At its meeting, the TACT members resolved to appeal to the public sector undertakings to increase the charges paid to them by 30 % for components supplied. With steep hike in raw material prices, the units need to realise better prices for the products. Similarly, the industries that outsource jobs to micro units should increase the hour rate paid for the job work by 50 % from the current level. Though the micro units got payments for the work done only after 60 or even 180 days, they need to pay the GST in 30 days. Otherwise, the units would need to pay the tax with penalty. Hence, government should take steps to ensure that the micro units get the payments in 30 days for the work done.
The COTMA members decided at the Association meeting to appeal to the State government to set up a raw material bank here to help the MSMEs procure raw materials at affordable prices. It also sought reduction of GST on job works from 12 % to 5 %. The additional support extended by banks after lockdown relaxations were only to units that had bank loans. Units that did not have bank loans were unable to get any support now. Further, the Tamil Nadu Industrial Investment Corporation was extending loans at 14 % interest. For loans upto ₹75 lakh, the interest rate should be 8 % and repayment period should be extended. The subsidies given by the State government through the District Industries Centre was only for those who had invested upto ₹25 lakh in any industry and upto ₹1 crore and manufacture automobile components. The Central government had revised the investment ceiling for micro units. The same norms should be adopted by the DIC too. Further, a welfare board should be set up for micro units, the Association said.
