Industries in Tiruppur and Coimbatore seek T.N. government support to revive manufacturing MSMEs

Industries in Tiruppur and Coimbatore have appealed to the new government of Tamil Nadu led by Chief Minister C. Joseph Vijay to come out with schemes that will help revive the Micro, Small and Medium-scale Enterprises (MSMEs) in the manufacturing sector.

The Southern India Engineering Manufacturers Association said that with a vibrant ecosystem of MSMEs, skilled workforce, entrepreneurial culture, and educational institutions, Coimbatore has emerged as a centre for innovation and industrial excellence.

There is a need to elevate the pump and motor manufacturing industry in Coimbatore into a thrust sector within the State’s industrial policy framework. Manufacturers who want to diversify into Electric Vehicle (EV) motors alongside pump manufacturing face challenges when applying for loans through the Tamil Nadu Industrial Investment Corporation (TIIC). The loan eligibility criteria mandates that only products designated as Thrust sectors can be manufactured in the facility for which the loan is sought. Hence, the government should designate pump manufacturing as a thrust sector, it said.

The cost of basic engineering raw materials, such as stainless steel rods and pig iron, is significantly lower in Gujarat due to the proximity of manufacturing plants and streamlined logistics. However, in Tamil Nadu, the multi-tiered supply chain adds considerable margins, increasing raw material costs around 25% to 30%. There is a raw material bank in Coimbatore supplying materials to micro and small units with 100% payment recovery. The government should extend ₹25 crore collateral free capital loan at subsidised interest to expand the materials supplied through the bank, it added.

The Tiruppur Exporters Association said the State government should provide organised and modern infrastructure to strengthen the city’s exporter competitiveness and also designate it as a specialised export city.

The Apparel Export Promotion Council (AEPC) said the State government should fast-track implementation of affordable rental housing for garment workers. It should reclassify worker hostels under residential electricity tariffs. It should provide 50% capital subsidy for the construction of worker hostels, with the balance project cost being supported through interest subvention, considering that the apparel industry is heavily dependent on migrant workers especially women workers and adequate housing is essential for ensuring a safe, stable and productive workforce.

The government should also announce a dedicated financial support programme for export-oriented MSMEs, providing interest subvention and improved access to working capital. It should offer capital subsidies for modernisation, automation, and technology adoption. It should simplify regulatory compliances for MSMEs by implementing a robust single-window clearance with time-bound approvals, the council said.