Coimbatore industries welcome T.N. interim Budget

The Tamil Nadu government’s interim Budget announcements on Tuesday for the power sector, textiles, and infrastructure are expected to benefit the industries in Coimbatore region.

Durai Palanisamy, chairman of the Southern India Mills Association, said the allocation of ₹6 crore to establish an Advanced Quality Testing Laboratory at the the South India Textile Research Association (SITRA), Coimbatore, to promote athleisure and other technical textiles manufacturing in the State, will promote technical textiles. The government has allocated ₹1,943 crore exclusively for handlooms and textiles apart from an equal amount for Micro, Small and Medium Enterprises (MSMEs) and ₹4,282 crore for industries that will also benefit the textile industry.

The Coimbatore District Small Industries Association president M. Karthikeyan said the proposal to establish ‘Fund of Funds’, allocation of ₹1,943 crore to the MSMEs aimed at promoting entrepreneurship and supporting industrial expansion, plans to set up a Centre of Excellence for Advanced Semiconductor Technologies in Chennai, in collaboration with the Indian Institute of Technology Madras, to support chip design, testing and skill development, and introduce a ship building policy were all welcome measures.

The first phase of the Gold Jewellery Park in Coimbatore district is being undertaken at an estimated cost of ₹81 crore giving a boost to the jewellery sector, he said.

According to L. Santhosh, president of the Tamil Nadu Electricity Consumers Association, preliminary studies have been completed to set up 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. This will play a crucial role in grid stability and effective integration of renewable energy into the power system. The government has finalised tenders to instal Battery Energy Storage Systems (BESS) with a capacity of 1,000 MWhr. This large-scale energy storage initiative will enhance reliability, manage peak demand, and support renewable energy integration. In addition, a new Integrated Renewable Energy Policy is set to be released shortly to expand renewable energy capacity.

Rajesh B. Lund, president of the Indian Chamber of Commerce and Industry, Coimbatore, said the interim Budget contains several welfare measures and allocation of funds to all the departments. There is more focus towards welfare measures and education with allocation of ₹28,687 crore for the Rural Development Department, ₹285 crore for construction of new museums across Tamil Nadu, and ₹718 crore to the Sports and Youth Welfare Department.

Tamil Nadu Association of Cottage and Tiny Enterprises president J. James said the allocation of ₹1,943 crore for MSMEs and providing 25% to 35% capital subsidy for MSMEs will benefit the sector.

However, Coimbatore Compressor Industries Association M. Raveendran said the State has 40 lakh MSMEs and allocation of ₹1,943 crore is inadequate. There is no relief from power cost or commercial taxes and there are no measures to control raw material prices.

Kovai Power Driven Pumps and Spares Manufacturers Association president K. Maniraj said while the government has allocated ₹18,091 crore for the energy sector, there is no relief for small and micro pumpset manufacturers from high power costs.