3 days ago
Micro, small-scale manufacturers wait more than a year for T.N. government's capital subsidy
For the micro and small-scale industries in Coimbatore district, the wait for subsidy from the Tamil Nadu government for capital investments is more than a year.
According to an official, Tamil Nadu government gives 25 % subsidy for capital investments. It also has subsidy schemes in the MSME Policy 2021 for MSMEs for energy audits, getting quality certificate, getting trade marks, and Intellectual Property Rights. The MSMEs apply for the subsidies online and the officials visit the units before processing the application. The subsidy amount is disbursed based on the seniority list when the government releases the funds. In Coimbatore district, majority of the applications are for the capital subsidy.
While the backlogs in processing the applications will be cleared soon, the funds were disbursed for applications received till September 2023, the official said.
J. James, president of the Tamil Nadu Association of Cottage and Tiny Enterprises (TACT), said the micro units that do job work for larger industries do not get work all through the year. They face labour shortage for works such as milling and grinding and hence invest in automatic machines. The machines are an expensive investment for the micro units and the State government's capital subsidy of 25 % gives the much-needed support for investment.
However, when a unit submits an application online, inspection of the unit takes a couple of months and the wait for the subsidy is more than a year. This affects the fund availability for the micro units as they have already made the investment.
The government should look into the issue and release the funds on time, he said.
