Latest news with #TamilNaduAssociationofCottageandTinyEnterprises
The Hindu
3 days ago
- Business
- The Hindu
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.
New Indian Express
24-05-2025
- Business
- New Indian Express
Farmers oppose new RBI restrictions on availing gold loans
"Now, in some additional guidelines issued recently, a receipt or proof of ownership of the jewellery has been made mandatory. Jewellery loans will not be given for gold coins, and only 75% of the value of the jewellery mortgaged will be given as loan. It is clear that these announcements were made to direct farmers and the middle-class towards private companies that offer gold and jewellery loans at higher interest rates," he added. J James, President of Tamil Nadu Association of Cottage and Tiny Enterprises (TACT), said, "The new restriction will impact MSME unit operators, who depend on jewellery loans during financial need, to complete job orders within a specified time period. The operators, who used to take jewellery loans at an average interest of 9.75%, should now take loans from private entities, at an average interest rate of 22%." CM Jayaraman, president of Citizens' Voice, Coimbatore, said, "The RBI's gold loan policy, disproportionately benefits large businesses while penalising small borrowers and investors, ultimately driving them to illegal lenders. The policy is ineffective in controlling gold prices and encourages GST evasions."
