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Government should ease subsidy norms for micro industries, says FOCIA

By Team YourCoimbatore on 17th November 2021
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The federation of Coimbatore industrial associations (FOCIA) asks the state government to exempt micro industries from providing mandatory ISO certification to claim a 25% subsidy for the purchase of machinery.

During a meeting on Monday, all the 19 industrial associations, which are part of FOCIA, resolved that they would approach the state government regarding the issue. The federation is also planning to announce an agitation seeking the attention of the state government for appropriate measures to bring down the escalating cost of raw materials.

Coordinator of FOCIA J James said the companies with up to Rs 1 crore turnover which are termed as micro industries were given a 25% subsidy for the purchase of machinery. But in recent times, micro-units were asked to provide ISO certification to claim subsidies.

While most units are operating from smaller spaces and do not have ISO certification, they will be forced to spend more on machinery, if denied subsidy. To rescue these ancillaries from incurring losses, the state government should intervene, he said.

James said about a 100% increase in the cost of raw materials in the past 12 months has forced the industries to bring down their production. The ancillaries which are depending on these industries for job works are in dire straits already.

Unless there are measures from the government to regulate the cost of inputs, the market may not stabilise leading to the closure of micro-units.

Meena

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