Tamil Nadu has come forward to support its Micro Small and Medium Enterprises (MSMEs) and, notably, the apparel industry has welcomed the same.
Raja M. Shanmugham, President, Tirupur Exporters’ Association (TEA) thanked the Chief Minister for the announcement of concessions to the MSMEs at this hour of crisis and added that these concessions will go a long way to help grow the Tirupur knitwear exports sector that consists of 95 per cent MSME units.
The payment of MOD registration including legal licenses required for MSME industries has been extended till December 2021.
Disbursement of capital subsidy in one instalment, exemption for the norm that sales proceeds should be increased by 25 per cent for expanding MSME sector will be extended till 31 December 2021.
These are extremely beneficial to Tirupur units that are struggling to sustain due to several internal and external factors. Further on the same, Raja said the impact of the pandemic has also largely affected the financial performance of the units.
He also said that the Central Government Scheme, Amended Technology Upgradation Funds Scheme (ATUFS) is providing 15 per cent capital subsidy to the garment sector and while other states are permitting to avail both Central Government ATUFS subsidy and the State Government capital subsidy, in Tamil Nadu, the investors are permitted to avail either Central or State subsidy only.
In this connection, Raja M. Shanmugham has requested the Chief Minister to permit to avail both Central (ATUFS) and State subsidies, as this measure will attract more entrepreneurs and boost the growth of industries in Tamil Nadu.
