COIMBATORE: The Coimbatore Tirupur Districts Micro and Cottage Entrepreneurs’ Association (COTMA) and the Indian Chamber of Commerce and Industry (ICCIC) have welcomed Tamil Nadu’s new industrial policy 2021 and called it ‘growth oriented’.
They have cheered the government’s decision to triple the subsidy cap on capital investment from Rs 50 lakh to Rs 1.5 crore. They stated that multiple incentives to sunrise sectors, including defence and food processing and technology, have the potential to change the industrial climate in Coimbatore.
They also hoped that the Rs 1,000 crore infusion into Tamil Nadu Industrial Investment Corporation (TIIC) would lead to more loans being disbursed.
“We appreciate the decision to increase the cap on capital subsidy which was 25% or Rs 50 lakh to Rs 1.5 crore. Today even small industries have a capital outlay of more than Rs 4 crores because of inflation. Rs 50 lakh was a limit set more than a decade ago,” said ICCIC president Balasubramaniam. “This will also remove the burden on manufacturers,” he added.
COTMA also welcomed the decision to infuse Rs 1,000 crore capital to TIIC. “We hope this will lead to more loans being disbursed at low rates of interest, which will benefit many small and micro industries. The allotment of Rs 500 crore for development of new industrial estates will also help,” a COTMA statement read.