COIMBATORE: Micro industries are miffed at the State government's recent guidelines that mandate quality certification for availing incentives for expansion and diversification of businesses. Those running the businesses say this will only add burden as they are already hit by fluctuations in the prices of raw materials.
The government recently made it mandatory for micro industries to possess valid ISO 9001 or any other recognised and relevant quality certification for availing a 25 per cent subsidy to buy new machinery. Officials said the move was aimed at enhancing the quality of the micro-enterprises and equipping them better for competing in the global arena.
However, the owners say the procedure to get the certifications was expensive and time-consuming. J James, district president of Tamil Nadu Association of Cottage and Micro Enterprises (TACT), said most micro-enterprises operated in a 10x10 feet or 10x16 feet space, undertaking work orders placed by big players.
He said the mandatory quality certification would dissuade many who plan to expand their businesses. "The State government's provision of 25 per cent subsidy through District Industries Centre (DIC) is a boon enabling micro-enterprises to buy new machinery. However, obtaining the certification would cost a huge sum which we cannot pay," James added.
Echoing similar concerns, Coimbatore SIDCO Industrial Estate Manufacturers' Welfare Association (COSIEMA) president P Nallathambi said the units would be forced to renew the quality certification every year by shelling out some money. He said, "The small, medium and large scale could obtain the quality certification, considering their turnover and the way they do business. But, a micro-enterprise with a turnover of `20 lakh a year may not require the certificate. We want the State government to exempt micro industries from possessing this certification. The exemption would protect them from running into further losses as they are already hit by the rising prices of raw materials."
Speaking to TNIE, B Karthigaivasan, general manager of DIC-Coimbatore, said the State government, in G.O. number 37 published on July 6, 2021, listed out the guidelines on incentives and concessions for micro, small and medium enterprises. While starting a new enterprise is exempted from the mandatory quality certification, he explained existing micro industries willing to expand or diversify their units are required to possess the certification for availing the government subsidy.
Karthigaivasan said the government's move was aimed at improving the quality of the units and equipping them to compete with global players. "The units need to spend for obtaining the quality certification depending on the certification agency they choose. But, the money is later refunded to them," he clarified. The official said there were several kinds of quality certification like ISO 9001 and NOM certification.