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Codissia pitches for PSUs in Coimbatore

R Yegya Narayanan Coimbatore | Updated on July 03, 2014 Published on July 03, 2014

The Coimbatore District Small Industries Association (Codissia) has stressed the need for starting Public Sector Undertakings (PSUs) in Coimbatore district so as to give a fillip to job creation and economic development of the district.

It also has demanded the formulation of a stimulus package to kickstart the revival of the MSME sector in the region.

In a resolution passed at its Annual General Meeting held here on Monday, the association said that the city has been identified for its growth potential and there were more than 60,000 Micro, Small and Medium Enterprises (MSMEs) located in the district. To give a fillip to the economic development and job creation, it suggested that PSUs should be started in the district. 

Codissia regretted that the MSMEs had hit a rough patch in the recent years and it was imperative that a stimulus package was formulated for their early revival with reduction in tax rates, rescheduling of loan repayment, additional working capital etc forming part of it.

The association, referring to the major contribution made by the MSMEs to the country’s GDP at 45 per cent and their 40 per cent share in the country’s exports, urged the Government to monitor closely the implementation of the purchase and price preference scheme for the MSMEs in key sectors like defence, aerospace and in government departments. It wanted the government to implement the GST from the current year itself and the EXIM policy should be tweaked so that the MSMEs benefited from them fully and they become globally competitive.

On the issue of taxation, Codissia wanted the immediate implementation of the Direct Taxes Code (DTC). With a view to give boost to new investments and job creation, it was sought that the rate of depreciation allowed to the MSME sector should be enhanced to 30 per cent. The MSMEs should enjoy a higher depreciation on R&D expenses and a market development fund to exclusively support the MSMEs for making expansion in domestic and international markets.

Turning to the infrastructure needs of the city, Codissia urged for the speedier development of National Highways 47, 67 and 209 around the city and to complete the link roads and flyovers in Coimbatore to ensure smooth traffic flow. Overnight trains to Chennai, Bangalore, Thiruvananthapuram and Tirunelveli should be introduced from here and the city also should get a mono or metro rail project. The expansion of Coimbatore airport also brooked no further delay.

E K Ponnuswamy was elected as the new President of Codissia for 2014-16. V Sundaram, R Ramamurthy and M V Ramesh Babu were elected as Vice Presidents and V Thirugnana Sambandam was elected as Hon. Secretary. 

Published on July 03, 2014
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