Industry associations representing the micro, small, and medium enterprises (MSME) sector in Tiruchi have welcomed the move to set up a committee to study the bottlenecks faced by the sector.
Union Finance Minister Arun Jaitley, in his maiden Budget for 2014-15, has proposed the formation of a committee to examine the financial architecture for MSME sector, remove bottlenecks, and give concrete suggestions in three months was widely appreciated by the industry associations.
“A lot of reforms are required, especially with respect to the statutory obligations on MSMEs. The committee should examine the problems faced by sector and suggest reform measures,” said Rajappa Rajkumar, vice-president, Tamil Nadu Small and Tiny Industries Association (TANSTIA) and former president of BHELSIA.
The Tiruchi District Tiny and Small Scale Industries Association (TIDITSSIA) and the BHEL Small Industries Association have also welcomed the initiative stating that it could address some of the long-pending problems faced by the sector.
Mr. Rajkumar welcoming the commitment to introduce Goods and Services Tax (GST) as a single taxation had been a long-pending demand of the industry.
He greeted with hope the move to grant 10-year tax holiday to the undertakings which begin generation, distribution, and transmission of power by March 2017. The excise duty reductions and the increase in the IT exemption limit were good initiatives, he said.
“Though the Budget has been presented within a short period after the new government has taken over, attempts have been made to encourage long term growth in all sectors, without omitting any,” said T. Raju Rebero, president, TIDITSSIA.
However, he regretted the absence of any announcement with respect to fostering public sector units, especially the Bharat Heavy Electricals Limited, in Tiruchi.
The association welcomed the move to provide investment allowance of 15 per cent to manufacturing companies that invest more than Rs. 25 crore in a year in new plant and machinery.
It hailed the move to promote smart cities along industrial corridors and the allocation of Rs. 500 crore taking up ultra mega solar power projects in Tamil Nadu and a few other States.
The BHEL Small Industries Association, representing the ancillary units of BHEL, appreciated the “macro focus” of the Budget.
G. Pari, president, BHELSIA, said the duty cuts for wind and solar energy projects and rationalisation of coal linkages were good auguries for the power sector.
