The micro and cottage enterprises here have sought Rs. 5,000 crore allocation in the Union Budget this year for revival of these industries in the State.
President of Coimbatore Tirupur District Micro and Cottage Entreprenuers’ Association S. Ravikumar has said in a release that the micro units in the State were hit by long hours of power cut and many were closing down.
The Central Government should allocate Rs. 5,000 crore for the revival of these units. The Small Industries Development Bank of India should provide Rs. 1 lakh to Rs. 10 lakh loan to these units, depending on their production capacity.
Though the Centre had said that banks should provide collateral-free loans up to Rs. 1 crore to micro units, most of the banks were not implementing it. Nearly 90 per cent of units were unable to get loans from banks because of this. With inadequate funds, the growth of these units was affected. The Centre should focus on this issue and ensure that the micro units got collateral-free loans from banks.
The Centre should also establish a public sector manufacturing facility in Coimbatore region so that the micro units received job orders. It would ensure a regular market to the MSMEs here, he said.