The Hindu Business Line : Budget a mixed bag, say Coimbatore industries

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Coimbatore Feb. 28 The Budget proposals made by the Finance Minister, Mr P. Chidambaram, have come as a mixed bag to the industrial associations in Coimbatore.

While some of the concessions announced by the Finance Minister would have a positive impact on the textile and engineering industries in the region, particularly in the SSI sector, a few of them have fallen short of the expectations of the industrial associations here.

The focus on agriculture and irrigation and larger allocation to these sectors are expected to benefit the engineering industries as Coimbatore accounts for a major share of the pump manufacture in the country. The reduction in duty on plastics would help the industries.

Speaking to presspersons, Mr D. Balasundaram, President, Indian Chamber of Commerce and Industry (ICCI), Coimbatore, said the industries welcomed the announcement of reimbursement of the employers' contribution to PF and ESI in respect of physically challenged employees. The reduction in customs duty on polyester fibre would also be a boon to the textile industry.

He said Coimbatore was a major outsourcing centre for the gem and jewellery industry and the reduction in duty on cut and polished diamonds and on unworked corals would have a positive impact. The district is a prominent centre for the coir industry and the Central Government's scheme for modernisation and upgradation would give a boost to this industry.

He said the duty exemption on expenses incurred on research and development would also help institutions such as Si'Tarc and SITRA that are engaged in research works relating to engineering and textile industries, respectively.

Mr Balasundaram said as Coimbatore was a major user of iron and steel, the duty on iron ore exports would serve as a dampener on raw iron ore exports that would help the domestic iron and steel manufacturers.

Mr C. Muthusami, President, Coimbatore District Small Industries Association, was happy over raising of the exemption limit for the SSIs from Rs 1 crore to Rs 1.5 crore. There is an acute shortage of trained manpower and the offer to help the Industrial Training Institutes (ITIs) with interest free loan of up to Rs 2.5 crore for each ITI to upgrade their facilities would help the small scale industries in getting quality manpower.

Mr C.R. Shanmughasundaram, President, Southern India Engineering Manufacturers' Association (SIEMA), Coimbatore, expressed the fear that the benefit of reduction of just one per cent in the Central Sales Tax (CST) would not percolate down to the industry and felt that the duty should have been cut from 4 per cent to 2 per cent.

Mr G. Rajendran, President, Coimbatore Industrial Infrastructure Association, said the duty on copper and aluminium, which are extensively used by the pump industry, should have been brought down to nil.

Mr R. Kuppusamy, President, South India Small Spinners Association, said the announcement regarding the continuation of Textile Upgradation Fund Scheme would remove a lot of speculation about the future of the scheme, which has been of great help to the textile industry to upgrade itself.

He felt that the Government should have extended to cotton cultivation the same incentives that it was giving to other crops liketea. He also wanted the SSI exemption limit be increased to Rs 3 crore.

Mr Jayakumar Ramdass, Chairman, CII, Coimbatore Zone, said as against the expectation of abolition of Fringe Benefit Tax, the Finance Minister had enlarged its scope.

More Stories on : Budget | Industry Associations | Tamil Nadu

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