Micro units in Coimbatore to organise campaign demanding support from government

The Federation of Coimbatore Industrial Associations representing 24 industrial associations in Coimbatore plans to organise a campaign next month demanding relief measures from the Central and State goverments for the micro and cottage industries.

J. James, S. Surulivel, and A. Sivashanmugakumar, co-ordinators of the Federation, said in a press release that the prices of steel and copper has increased 40 % in the recent months, creating uncertainties for the micro and small-scale enterprises. The Central government should constitute a price monitoring committee and should remove the import duty on copper till the domestic prices stabilise.

The local bodies are asking the micro and cottage enterprises to obtain running licence by paying huge amounts and have increased the professional tax. This is a burden for the micro industries and the Tamil Nadu government should exempt the micro and cottage industries from these taxes.

Further, while the micro units are hit by the hike in electricity fixed charges, the Tamil Nadu Power Distribution Corporation has brought them under power factor by installing smart meters. Units with less than 20 KW power connection are also forced to maintain power factor now.

The Commercial Taxes Department is asking the industries to submit their VAT account details from 2006-07 and is threatening to collect penalty with interest, they said.