The Tamil Nadu government’s interim Budget announcements on Tuesday relating to the power sector, textiles and infrastructure are expected to influence industries in the 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 South India Textile Research Association (SITRA), Coimbatore, to promote athleisure and other technical textiles manufacturing in the State, will promote technical textiles. He also noted that 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, which would also benefit the textile sector.
M. Karthikeyan, president of the Coimbatore District Small Industries Association, said the proposal to establish a ‘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 introduction of a ship building policy were welcome measures.
The first phase of the Gold Jewellery Park in Coimbatore district is being undertaken at an estimated cost of ₹81 crore, which he said would benefit the jewellery sector.
L. Santhosh, president of the Tamil Nadu Electricity Consumers Association, said preliminary studies have been completed to establish 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 said this would play a role in grid stability and renewable energy integration. The government has finalised tenders to install Battery Energy Storage Systems (BESS) with a capacity of 1,000 MWhr. In addition, 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 welfare measures and 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, said the allocation of ₹1,943 crore for MSMEs and provision of 25% to 35% capital subsidy for MSMEs would benefit the sector.
M. Raveendran of the Coimbatore Compressor Industries Association stated that the State has 40 lakh MSMEs and the allocation of ₹1,943 crore is inadequate. He added that there is no relief from power costs or commercial taxes and no measures to control raw material prices.
K. Maniraj, president of the Kovai Power Driven Pumps and Spares Manufacturers Association, said that while ₹18,091 crore has been allocated for the energy sector, there is no relief for small and micro pumpset manufacturers from high power costs.