Centre allots funds to set up technology facility for Coimbatore MSME’s

The Union Ministry of Micro, Small and Medium-scale Enterprises (MSMEs) approved ₹200 crores for an MSME technology centre to be set up in Coimbatore. R. Vijayakumar, Branch Head of the MSME Development Institute, Coimbatore, informed that the Union Government has announced the project for 12 cities, that includes Coimbatore. The project will be implemented by the MSME Development Institute. The project will receive funds not only from the centre but also from the State Government. The State Government should provide 20 acres for the project and the Union Government will give ₹200 crores to set up common facilities. These common facilities could be used by the micro and small-scale industries here. Recently, the heads of a few industrial associations and officials related to the industries department met K. Rajamani, Coimbatore District Collector, to explain the project details.

The project had been sanctioned for Coimbatore earlier too, but due to land availability being a major problem, the opportunity for the same was passed on to Kochi. R. Ramamurthy, President of Coimbatore District Small Industries Association (CODISSIA) said, “The State Government should give the land and the Collector has promised his support for the project. It is a huge project. If Coimbatore is able to implement it, it will be a pride for the city.” The machinery to be set up and facilities to be created at the centre will be decided by the industrial associations at Coimbatore based on the needs of the industries. R. Ramamurthy said, “The centre will have training facilities too and will provide employment opportunities.”

According to J. James, President of the Tamil Nadu Association of Cottage and Tiny Enterprises, the plan is to set up common technology facilities that the small and tiny industries can use. He said, “There is government land that the State Government can allocate for the project. The micro-units face several challenges and will not be able to buy land. Hence, the Government should identify and provide land for the project.”

Coimbatore has more than 20,000 micro-units. He suggested that since most of these units function out of rented buildings by paying minimum ₹6,000 rent per month, the government can arrange bank loans for the micro-units. This will enable them to shift to an industrial park and repay the loan instead of paying the rent.

 

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