Budget 2012: Reduce interest rates and scrap NREGA | SupportBiz


Budget 2012: Reduce interest rates and scrap NREGA

CODISSIA also wants improvements to road-connectivity between the industrial belt and ports on the Kerala coast.

The Coimbatore District Small Industries Association (CODISSIA), talking to SupportBiz about its expectations from the March 16 Union Budget, stressed on the need for a reduction in interest rates.

The textile ministry's Technology Upgradation Fund (TUF) scheme, has fixed a five percent interest rate for textile units. The MSME sector, which accounts for 40 percent of India’s exports and employs some 60 million people, suffers a 15% to 16% percent interest rate, mentioned CODISSIA president Kandhaswami M. “Bank’s profits are all our money, but we are starving and are without reliable power, suffer labour shortages and a money crunch,” Kandhaswami said. He runs Anandha Fabrications

CODISSIA believes that the government’s rural job scheme, MGNREGA, is the reason why the Coimbatore region suffers labour shortages. MGNREGA should be implemented only in the agriculture belts and not close to industrial zones. It tempts people to quit their jobs in factories. Many workers end up without work, the association said. "NREGA should be abolished," a frustrated Kandhaswami said. 

The other issue is the Steel Authority of India’s (SAIL) gowdown in Coimbatore, which does not stock the different varieties of steel. The godown’s stock is sold to traders, and industrial units are forced to buy from traders. This has to be looked into, CODISSIA said.

On the infrastructure front, the association requests that the Coimbatore airport be re-developed as an international airport to allow foreign customers to fly directly to the region. Many customers are forced to land in Mumbai or Chennai, and forced to spend a night at either of the two cities before they hit the industrial zone.

Connectivity to the Cochin and Tuticorin ports needs improvement. CODISSIA requests that the roads connecting the two ends be upraded to a four-lane state highway (SH).

The Walayar check post, bordering Tamil Nadu and Kerala is the biggest hurdle for goods headed to ports on the Kerala coast. Implementing the Goods and Services Tax (GST) will get rid of all check posts. The issue being - trucks end up waiting 48 hours at the checkpost and end up missing the ship at the port. Goods sit idle at the port for another week, waiting for the next ship that carries goods to the mother ship in Colombo.