The Hindu Business Line : Tech fund for engg units sought

Coimbatore, Nov. 3 The Indian Chamber of Commerce and Industry, Coimbatore, has urged the Central Government to launch a Technology Upgradation Fund (TUF), on the lines of TUF for the textile industry, to enable the engineering industries in the region to scale up their capabilities.

It also wants the Government to form a Special Economic Zone here for the benefit of the engineering industries, the backbone of Coimbatore’s economy.

A resolution adopted at the annual general meeting of the chamber said that the motor, pump, foundry and auto component industries have the expertise for design skill and manufacturing technology to meet the needs of emerging markets.

They needed large volume of specific metallurgical foundry and machining requirements to meet global standards. To develop the capacities of these sectors, the chamber requested the Government to extend the TUF scheme, now available to the textile sector, to the engineering industries as well, which would help attract large investment.

The chamber also wanted a SEZ to be formed in Coimbatore for engineering SMEs such as foundry, pump and motor and auto component industries to give a push to exports.

Pointing out that collection from Fringe Benefit Tax (FBT) was marginal compared to corporate and personal income-tax collections, the chamber wanted FBT to be abolished. The process of collection of FBT was cumbersome and the energy wasted in its collection could be used more fruitfully in other areas. It also wanted withdrawal of securities transaction tax to stimulate the capital markets.

The chamber wanted a new industrial estate with a minimum area of 2,000 acres to be formed in the district to accommodate all types of industries. Coimbatore airport should be expanded to provide direct flight connection to Europe.

It wansted the Government to take up important road projects like six-laning of national highways passing through Coimbatore Urban Area up to a distance of 50 km from the city.

Mr Mahendra Ramdas, who took over as the new President of the chamber, feared that the reform process may be put on the backburner till the new Government is installed at the Centre. There were several negative factors facing the economy, he said, and “lack of direction among policy makers is making things worse”.

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