A Joint Interaction Meeting with various Industrial and Trade Associations was organized by the Indian Chamber of Commerce and Industry, Coimbatore (ICCIC) and CODISSIA to understand the current challenges faced by industries. Around 80 associations representing trade, industry and service sectors participated in the meeting and shared their concerns regarding the prevailing industrial situation.
Based on the deliberations, key issues affecting Micro, Small and Medium Enterprises (MSMEs) in Coimbatore and surrounding industrial clusters such as Supply Disruptions of Fuel and Industrial Inputs; Escalation in Raw Material Costs; supply chain-related issues and a lot more have been represented to the Government on behalf of all participating associations.
A press release stated that industries are facing acute shortages and irregular supply of commercial LPG cylinders, furnace oil and petrochemical-based inputs that are critical for manufacturing processes and even industrial canteen operations. MSMEs are unable to pass on the financial burden faced because of the hike in cost of raw materials such as steel, carbide and other engineering inputs. Similarly, the safeguard duty on steel imports has contributed to the rise in domestic steel prices.
The associations have hence appealed to the Indian Govt to consider temporary removing the safeguard duty to stabilise prices and support MSMEs dependent on steel. It has also been requested that banks may be advised to enhance working capital limits from the present level of around 25% of turnover to 40–50% on a temporary basis as MSMEs are facing severe liquidity stress.
Interest subvention support to enable MSMEs to access credit at a moderated interest rate of around 7%, as against the current rates of 9% to 12% was also requested. It was also conveyed that due to fuel shortages, industries are shifting towards electricity as an alternate energy source. In this regard, the industry associations requested temporary Waiver of network charges for rooftop solar power usage; Waiver of fixed charges / maximum demand charges and Deferment of proposed electricity tariff revision.
On behalf of all the associations, the Indian Chamber of Commerce and Industry, Coimbatore and CODISSIA have jointly represented to the Government of India that timely policy intervention and financial support are essential to help MSMEs sustain operations, safeguard employment and maintain industrial stability during this challenging period.
