CHENNAI: The State government will create a special fund of Rs 100 crore towards public infrastructure for export organisations in the State. The fund will be used to set up skill centres, inland container depots and the like with contribution from industries and industry associations.
Regional chairman of Federation of Indian Exporters Organisation (FIEO) Israr Ahmed said, “The move has come at the right time as the State is now the most preferred destination for investment. This will result in a surge of manufacturing companies flocking to the State.” The CII hailed the ‘futuristic’ budget.
The State Budget also announced two exclusive clusters for manufacturing electronic products at Pillaipakkam and Manallur with financial assistance from the Union government.
Srivats Ram, the president of Madras Chamber of Commerce and Industry, said that special focus on critical areas like infrastructure would help in development across the State. While the State has allocated Rs 3,267 crore for the Industries department, there has been no major announcements pertaining to creation of jobs. Meanwhile, the budget received mixed responses from small industries and MSMEs.
While Coimbatore District Small Scale Industries Association president MV Ramesh Babu welcomed the allocation of funds to tackle Industry 4.0 initiatives, he expressed disappointment at the lack of announcements towards tackling rising raw material prices and extension in interest subvention charges at 6 per cent for all MSME units.
Rajappa Rajkumar, the president of BHEL Small Scale Industries Association, said, “MSME units have been suffering in the past five years due to the general recession. No provision was made in this Budget to take care of the stressed units.” President of Tamil Nadu Small and Tiny Industries Association K Mariappan welcomed the allocation of Rs 2,353.93 crore for the labour welfare department.
(With inputs from Coimbatore and Tiruchy)