COIMBATORE: Industrial organisations in Coimbatore provided a mixed response to the Tamil Nadu Budget presented on Wednesday, welcoming major investments in power infrastructure, renewable energy and industrial parks while expressing disappointment over the absence of relief on electricity fixed and demand charges that have long burdened MSMEs.
M Jayabal, president of the Recycle Textile Federation, said the sector had expected the Budget to address the long-pending demands of the state's 4.8 million MSME entrepreneurs.
"In particular, we were looking forward to a 50% reduction in fixed charges, which have risen by nearly 480%, a 50% cut in demand charges and the waiver of solar network charges.
These were among the commitments made during the election campaign with assurances of immediate implementation. The absence of any announcement on these crucial issues is a matter of disappointment for the MSME sector, which continues to face mounting financial pressures," he said.
J James, president of TACT, echoed the concerns, "It is disappointing that the Budget does not include the expectation that the fixed charge will be reduced from Rs 170 to Rs 35."
Several associations, however, appreciated the government's focus on power and industrial infrastructure. Durai Palanisamy, chairman of SIMA, welcomed the allocation of Rs 6,080 crore for the Green Energy Corridor III to evacuate 11,000 MW of renewable power and the push for Battery Energy Storage Systems to attract private investment and ensure grid stability.
He also welcomed the Rs 150 crore allocation under the Vetrithiran Training Scheme to skill one lakh people in a phased manner with a monthly stipend, noting that it would help meet industry's growing demand for skilled manpower.
G Arulmozhi, president of OSMA, highlighted the Rs 3,200 crore for development of SIPCOT industrial parks, Rs 2,200 crore for industrial capacity enhancement, Rs 1,543 crore for establishing 178 power substations and Rs 4,000 crore for the 765 kV Coimbatore-Ariyalur transmission corridor as measures that would support industrial growth.
V Rangasamy, president of Codissia, welcomed the Rs 2,142 crore allocation to the MSME Department, the launch of TN Single Window 3.0 for faster clearances and the funding for new SIPCOT parks. R Arun Karthik, president of SISPA, said the overall allocation of Rs 15,828 crore allocation to the energy department, along with initiatives for substations, transformer modernisation, green energy networks, rooftop solar, BESS, EV charging infrastructure and transmission strengthening, provided renewed confidence to industry.
Rajesh B Lund of ICCI said the Budget offered a positive outlook for Coimbatore's engineering, textile, pump, foundry, auto-component and MSME sectors, while calling for further measures on competitiveness, exports, logistics and region-specific infrastructure.
C Sivakumar of COTMA noted that the Rs 352 crore for business investment and interest subsidies was welcome but insufficient, given Coimbatore district alone would need more than Rs 200 crore.
Mithun Ramdas of SIEMA welcomed the emphasis on renewable energy and rooftop solar but expressed disappointment that pumps were not designated a thrust sector. K Maniraj of KOPMA regretted the absence of a pumpset export support centre, free testing lab and raw material warehouse in Coimbatore.