MSMEs Disappointed with Allocations

Industries here, especially the micro, small and medium-scale enterprises (MSMEs), have expressed disappointment with the interim budget.

While the State government announced huge allocations for different sectors, for the MSMEs it is just Rs. 348 crore, said S. Ravikumar, president of Coimbatore Tirupur District Micro and Cottage Entrepreneurs’ Association.

The cost of power for these units had increased from Rs. 4 a unit to Rs. 8 a unit in the last five years. This should be reduced and the micro units should be brought under 3A1 category for power tariff, he said.

According to K. Maniraj, president of Kovai Power Driven Pumps and Spares Manfuacturers’ Association, VAT on motor pumpsets, which is five per cent now, has not been reduced to two per cent though it is one of the long-pending demands of the association.

The association has also been seeking a warehouse here for raw materials used by the pumpset manufacturers. The budget has not addressed these needs. The government should announce during the current session that local bodies purchase 70 per cent of their pumpset needs from micro and small-scale manufacturers, he demanded.

The State government did not address the needs of the MSMEs in the last five years, said J. James, president of Tamil Nadu Association of Cottage and Tiny Enterprises.

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