Micro and cottage enterprises have appealed to the Central government to issue credit cards to Micro, Small and Medium-scale Enterprises (MSMEs) as announced in the Union budget last year.
President of the Coimbatore Tiruppur District Micro and Cottage Entrepreneurs Association C. Sivakumar said the government announced in the budget last year that MSME credit cards will be issued on the lines of kisan cards for farmers. However, this is yet to be implemented. There should be raw material banks in MSME clusters such as Coimbatore in Tamil Nadu so that micro units get the raw materials at prices lower than the market price (wholesale and retail).
The government should also simplify procedures so that micro entrepreneurs can also place orders with Central government public sector undertakings.
Furthermore, the CGTMSE scheme fee for entrepreneurs who take loans from nationalised banks should be reduced to 0.5 %. Micro-entrepreneurs should be completely exempted from bank transaction charges if their sales are below ₹50 lakh in the first year and banks should have branches dedicated for MUDRA loans.
To facilitate export orders for Tamil Nadu entrepreneurs, a global buyer-seller meet should be organised in Coimbatore district on behalf of the Central government.
The work to set up an MSME Technology Centre at Arasur in Coimbatore district is stalled though land has been handed over for the project. Works should resume so that the centre is commissioned at the earliest, he said.
There is an expectation that one per cent of the revenue generated by industry should be allocated to the MSME sector in the upcoming budget to protect micro, small and medium enterprises.
J. James, president of the Tamil Nadu Association of Cottage and Tiny Enterprises, said the Central government allocated just ₹22,000 crore for MSMEs in the last budget, which was inadequate. At least 1 % of the revenue generated by the MSMEs should be allocated to the industry in the budget.
The government should provide budget allocations and resume the 15% subsidy that was provided to small and medium enterprises for purchasing machinery.
If an entrepreneur defaults repayment of bank loan, he should have six months time before his assets are covered under the SARAS Act.
Coimbatore’s MSMEs are known for manufacture of wet grinders, compressors, and pump motors. All these units are impacted severely by the 18% GST. The industry expects the government to change the GST rate to 5%, he said.
Mr. Sivakumar and Mr. James said nationalised banks should provide loans to micro units at 5% interest and the GST on job works should be reduced to 5% from 18%.
Published – January 20, 2026 07:32 pm IST
