The Federation of Coimbatore Industrial Associations (FOCIA) has called on the Tamil Nadu government to relax specific conditions under the capital subsidy scheme for Micro, Small, and Medium Enterprises (MSMEs). The federation alleges that genuine micro and small entrepreneurs are being denied benefits by district industrial centres due to procedural hurdles.
Petition to MSME Minister
In a petition submitted to MSME Minister Madan Raja, FOCIA highlighted that the state's machinery subsidy, offering support ranging from 25% to 35% for eligible purchases, aims to boost small industries that significantly contribute to Tamil Nadu's growth and employment. However, a key eligibility condition is becoming a barrier for job-work based units.
Production Increase Condition Under Fire
FOCIA claimed that applications are being rejected on the ground that beneficiaries must demonstrate at least a 25% increase in production within three months of purchasing machinery, compared to pre-purchase output. J James, coordinator of FOCIA, explained that modernisation is unavoidable as clients demand faster and more precise output. “A CNC machine costs Rs 22 lakh to Rs 25 lakh. A VMC costs around Rs 35 lakh. We need advanced machines to improve productivity and meet client timelines,” he said, adding that the current condition does not reflect market realities for job-work units.
“Many MSMEs, especially job-order units, do not receive consistent orders throughout the year. One year can be good, another may have no orders,” James stated. He urged the removal of the clause and the issuance of clear guidelines to ensure subsidies reach intended beneficiaries. He also requested that the government provide subsidies during the 2025–26 period to applicants whose applications were rejected or cancelled under these criteria.
Separate Petition on Registration Issues
In a separate petition to Commercial Taxes and Registration Minister Lokesh Tamizhselvan, difficulties in renewing registrations of partnership firms and associations were flagged. Petitioners alleged they are asked to upload documents online and also submit hard copies, after which approvals are delayed for months. They said offices do not communicate defects via phone, SMS or email, insisting on in-person follow-ups, while citing “software issues” for missing records and erroneous flags showing non-payment or non-renewal despite compliance. They sought directions for time-bound updation of association registrations.
