A delegation comprising of the Presidents of three trade and industrial associations SIEMA (Southern India Engineering Manufacturers Association), Shri K K Rajan, CODISSIA (Coimbatore District Small Scale Industries Association), Shri V Sundaram and The Indian Chamber of Commerce & Industry, Coimbatore, Smt Vanitha Mohan presented memorandums to various Central Government functionaries in the wake of demonetisation on Thursday, 7th December 2016 at New Delhi.
The delegation met Shri Kalraj Mishra – Hon’ble Union Minister for MSME, Shri Giriraj Singh - Hon’ble Union Minister of State for MSME and Shri K K Jalan – Secretary, MSME at New Delhi to convey the representations made by more than 50 industrial and trade associations of Coimbatore, most of them being SMEs.
A press release from KK Rajan, President SIEMA, details that:
Ministry of MSME:
The delegation placed the following requests with the Hon'ble Minister -
The distribution of currency across the nation seems to be unequal. Equitable distribution of cash across the entire country with more allotment to industrial hubs like Coimbatore to be ensured so that it will help us to persuade the people to open accounts. Now even the workmen whose salaries are remitted into their accounts are not able to withdraw money due to shortage of funds both with the banks as well as ATMs.
More smaller denomination currency to be brought into circulation since people are being subjected to a lot of inconvenience due to paucity of change.
Withdrawal limits to be enhanced to at least Rs. 2 lakhs per week to tide over the present cash crunch situation. This has led to a severe impact on labour availability.
Visas can be obtained from most Consulates except a few only against cash remittances. This is posing a serious impediment to travellers especially business travellers because of the withdrawal limit.
There is a general feeling that the new currency is also being hoarded. It is suggested that a study be made by the Finance Ministry to assess the actual funds made available for industry which could throw up the suspected anomalies.
Hon'ble minister promised to take immediate steps to ensure availability of cash with banks especially the small denomination currency. He has promised to communicate with the Regional Director of RBI to ensure adequate funds are available in Coimbatore to meet the requirements of industry.
He also promised to assess the amount of new currency which has been deployed in industry and ensure equitable distribution to all parts of the country. He would look into areas like that of visa where cash remittances were unavoidable.
Ministry of Labour & Employment
Shri Bandaru Dattatreya – Hon’ble Union Minister of State for Labour & Employment
The following representations were made to the Hon'ble Minister -
The delegation will work towards opening bank accounts for the workmen at the earliest. But amnesty against PF omissions of the past was sought by taking up the matter with PF authorities to avoid imposing retrospective levies for such omissions.
Hon'ble Minister promised to work closely with the Associations by ironing out any kind of problems faced on the statutory obligations aspect. He gave a blanket sanction to call him anytime if the members faced issues on account of PF, ESI etc.
Prime Minister’s Office:
Shri Tarun Bajaj - Joint Secretary
The delegation briefed the Joint Secretary about all the problems faced by Industry in the Coimbatore region for the kind attention of the Prime Minister Shri Narendra Modi. They sought his help to facilitate a meeting with a larger delegation of representatives from various sections of the community to present a plan to make Coimbatore a model city based on the ideologies of our Hon'ble Prime Minister.
Ministry of Urban Development
Shri M Venkaiah Naidu – Hon’ble Union Minister for Urban Development
All the above representations were made to Hon'ble Minister for his perusal and consideration. However, he would look into specific areas of concern to help mitigate the problems - especially in the areas of fund availability with banks as well as problems relating to statutory payments.
The delegation assured the Hon'ble Minister that they would with the support of the Associations work to create a Model region in Coimbatore to bring about a cashless economy.
Regarding the Smart City implementation, the delegation sought more support from the Central Government to see it through. They requested the Centre's intervention for airport expansion which has been a bone of contention for several years now. Hon'ble Minister stated that both the issues were the responsibility of the State Government and that the delegation has to take up the matter with the State authorities.
The representation was taken to the attention of our Hon'ble Prime Minister the very same day by Hon'ble Minister Shri Venkaiah Naidu and we were called over phone this morning to inform that all they will work very closely with us to ensure that all the problems are resolved at the earliest (especially those of the MSMEs).
He has also invited the Members of the delegation to call his office any time if the public face any problem from any front while complying with the norms of the Government. This was an assurance given by the Hon'ble Prime Minister himself through Shri Venkaiah Naidu.