MSMEs wait for more than a year for government subsidies

Micro, Small and Medium-scale Enterprises (MSMEs) successful Tamil Nadu that person applied to the District Industries Centres (DICs) for authorities subsidies person been waiting for much than a twelvemonth to get the benefit.

In Coimbatore district, units that applied for subsidy nether aforesaid employment schemes till the extremity of 2023 lone person received the subsidy. In Tiruppur district, applications received till April 2024 person got the subsidy.

“We estimation that successful Coimbatore district, subsidy worthy astir ₹100 crore is yet to beryllium disbursed,” claimed J. James, president of the Tamil Nadu Association of Cottage and Tiny Enterprises. The DIC officials instrumentality six months oregon much to inspect and o.k. the applications. While the magnitude is yet to beryllium released for applications approved 2 years ago, determination are applications that are pending support astatine the territory level, helium claimed.

Official sources said allocations made for backward districts went up astatine 1 constituent of clip However, it is Chennai, Tiruvallur, Kanchipuram, Coimbatore that necessitate further allocation due to the fact that of the concern basal successful these districts. Further, Tamil Nadu authorities is yet to notify the MSME redefinition arsenic announced by the Union government. If that is done, the magnitude required for subsidies volition increase, they say.

The magnitude remaining with the districts is present utilized to wide the dues for the pending applications. But, what the State needs is higher allocation for subsidies for the MSMEs, the officials said.

Tamil Nadu gives superior subsidies nether 5 State authorities and 2 Central authorities self-employment schemes isolated from the NEED strategy and involvement subvention schemes. If the State authorities gives astir ₹300 crore, the subsidy arrears tin beryllium cleared, they added.

S. Vasudevan of the Tamil Nadu Small and Tiny Industries Association (TANSTIA) said the State authorities should summation the fund allocation for the MSME assemblage to ₹3,000 crore annually from the existent ₹1,800 crore.