Coimbatore Industry Bodies React to Tamil Nadu Interim Budget Allocations

The interim Budget presented by the Tamil Nadu government includes allocations for the power sector, textiles and infrastructure, which are expected to affect industries in the Coimbatore region.

Durai Palanisamy, chairman of the Southern India Mills Association, referred to the ₹6 crore allocation for establishing an Advanced Quality Testing Laboratory at the South India Textile Research Association (SITRA), Coimbatore, aimed at promoting athleisure and other technical textiles manufacturing in the State. He also pointed to the allocation of ₹1,943 crore exclusively for handlooms and textiles, an equal allocation of ₹1,943 crore for Micro, Small and Medium Enterprises (MSMEs), and ₹4,282 crore for industries, which would also support the textile sector.

M. Karthikeyan, president of the Coimbatore District Small Industries Association, said proposals such as the creation of a ‘Fund of Funds’, the ₹1,943 crore allocation to MSMEs to promote entrepreneurship and industrial expansion, plans to establish a Centre of Excellence for Advanced Semiconductor Technologies in Chennai in collaboration with the Indian Institute of Technology Madras for chip design, testing and skill development, and the introduction of a ship building policy were notable measures.

He also mentioned that the first phase of the Gold Jewellery Park in Coimbatore district is being implemented at an estimated cost of ₹81 crore.

L. Santhosh, president of the Tamil Nadu Electricity Consumers Association, said preliminary studies have been completed for a 1,000 MW Pumped Storage Hydroelectric Project in the Vellimalai area of Kanyakumari district under the Public-Private Partnership model at ₹5,320 crore. He stated that the project would contribute to grid stability and renewable energy integration. The government has also finalised tenders for installation of Battery Energy Storage Systems (BESS) with a capacity of 1,000 MWhr. A new Integrated Renewable Energy Policy is expected to be released to expand renewable energy capacity.

Rajesh B. Lund, president of the Indian Chamber of Commerce and Industry, Coimbatore, said the interim Budget includes allocations across departments, including ₹28,687 crore for the Rural Development Department, ₹285 crore for construction of new museums across Tamil Nadu, and ₹718 crore for the Sports and Youth Welfare Department.

J. James, president of the Tamil Nadu Association of Cottage and Tiny Enterprises, referred to the ₹1,943 crore allocation for MSMEs and the provision of 25% to 35% capital subsidy for MSMEs.

M. Raveendran of the Coimbatore Compressor Industries Association said that with 40 lakh MSMEs in the State, the allocation of ₹1,943 crore is inadequate, adding that there is no relief from power costs or commercial taxes and no measures to regulate raw material prices.

K. Maniraj, president of the Kovai Power Driven Pumps and Spares Manufacturers Association, stated that although ₹18,091 crore has been allocated to the energy sector, small and micro pumpset manufacturers have not been provided relief from high power costs.