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Our Bureau

Coimbatore , March 23

TEN wet grinder accessories manufacturing units have joined hands for availing themselves of financial support under SIDBI's (Small Industries Development Bank of India) Mutual Credit Guarantee Fund Scheme (MCGF) for bulk purchase of raw material.

These tiny units engaged in the manufacture of arm sets for wet grinders formed a consortium and registered under the Societies Act for availing themselves of assistance under the MCGF Scheme. They had put forth a proposal for Rs 5 lakh, which has since been sanctioned.

(MCGF support is extended to small and tiny units which are part of a consortium. While SIDBI advances 25 per cent of the sum, interest-free and without collateral, the members bring in an equal amount. The amount advanced by SIDBI is payable within three years. The total sum is deposited with the bank that finances the proposal after contributing the remaining 50 per cent.)

Having implemented the first consortium proposal, the COWMA (Coimbatore Wet Grinders and Accessories Manufacturers Association) has submitted a second proposal for Rs 10 lakh. "This time, the consortium members include motor manufacturers and makers of other accessories," its President, Mr Rajan, said.

Since the sanction of the first group proposal by Vijaya Bank, more banks have evinced interest to fund such proposals, he said.

COWMA's membership is 700, of which about 200 are medium and big-sized units that may not look for MCGF finance support. "Only about 10 units enjoy MCGF support, and they have in the last three months been able to save as much as 10 per cent on cost," he said.

The manufacturing capacity of these 700 units has been estimated at 75,000 wet grinders every month.

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